Ichimoku resource centre.

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Ichimoku Kinko Hyo (一目å￾‡è¡¡è¡¨, Ichimoku KinkÅ￾ HyÅ￾?) usually just called ichimoku is a technical analysis method that builds on candlestick charting to improve the accuracy of forecasted price moves. It was developed in the late 1930s by Goichi Hosoda (細田悟一, Hosoda Goichi?), a Japanese journalist who used to be known as Ichimoku Sanjin, which can be translated as "What a man in the mountain sees". He spent thirty years perfecting the technique before releasing his findings to the general public in the late 1960s.

Ichimoku Kinko Hyo translates to 'one glance equilibrium chart' or 'instant look at the balance chart' and is sometimes referred to as 'one glance cloud chart' based on the unique 'clouds' that feature in ichimoku charting.

Ichimoku is a moving average-based trend identification system and because it contains more data points than standard candlestick charts, provides a clearer picture of potential price action. The main difference between how moving averages are plotted in ichimoku as opposed to other methods is that ichimoku's lines are constructed using the 50% point of the highs and lows as opposed to the candle's closing price.

http://en.wikipedia.org/wiki/Ichimoku_Kink%C5%8D_Hy%C5%8D



Chart School explanation of Ichimoku:

http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:ichimoku_cloud

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ICHIMOKU VIDEOS

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Asia Pacific Finance:

http://www.youtube.com/user/APFTrading/videos

Four basic introductory videos.

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Newsagg:

http://www.youtube.com/user/soundbites0/videos?sort=dd&view=u&page=2

Excellent selection of videos. Big David Linton fan.

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FX Times:

http://www.youtube.com/watch?v=mZa9OHaoIUs&feature=plcp&context=C3bd857cUDOEgsToPDskL9ran3DdGJdPsrjEpd1hrF

Good introductory video.

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Nine hour video training course on Technical Analysis and Trading that includes a segment on Ichimoku:

http://www.youtube.com/watch?v=lhRKw-y7oG4&feature=channel_video_title

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Ichimoku Trader:

http://www.youtube.com/user/ichimokutrader

Selection of introductory videos.

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YouTube channel for Ichimoku Charts, by Larry Lovrencic an Austrialian technician who does daily Cloud & Candle updates on the S&P, Gold, Oil, Dollar:

http://www.youtube.com/user/IchimokuCharts

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Ichimkou scanning website:

http://www.ichimokutrader.com/

Scans global stocks and indices. Superb free service.

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Japanese Trading Techniques listmania on Amazon:

http://www.amazon.co.uk/Japanese-Trading-Techniques/lm/R25VUAV45MLNGM/ref=cm_srch_res_rpli_alt_1

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"The market has its own language. Only intensive practice will enable us to know it. We must become familiar with hundreds of cases, until the market becomes part of us - second nature to us."

"It is all visual. A look at the charts, at the market's behaviour in a direct way is the single most important thing to do. It is more important than anyone's opinion."

"Here is why charts are unique. They give us real information unattainable otherwise. Even if we do not know exactly why things are happening, we will at least be able to assess what is really going on. We will definitely know the market truth."

"Knowing that the markets oscillate between two poles is the foundational knowledge for any trader. Not understanding this behaviour of reality makes it difficult, if not impossible, to understand and master trading."

Felipe Tudela

The Secret Code of Japanese Candlesticks

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Brian Marber:

Even the previously unforeseeable is soon absorbed into market consciousness..
As soon as it has been (that's the market's job), it starts being discounted.

Price, in markets, is not only actual,
but also people's perception of future price:
no one buys unless he thinks price is going to go up;
no one sells unless he thinks price is going to go down.

You don't even need to know what people are thinking.
Or why.
Or what they should be thinking; just what they ARE thinking.

The Law of Supply and Demand does the rest.

There is, of course, no substitute for inside information,
but if you haven't got any,
price, and a chart thereof, is the best alternative,
provided you engage a skilled chart reader.

The main problem with TA is this:
everyone who has ever seen a chart
thinks he is a bit of a chartist.
You might as well be operated on by an amateur brain surgeon.

The main problem with economics,
and therefore with fundamental analysis,
is it hypothesises that human beings are rational
and therefore make rational decisions.

They aren't, and don't.
Technical analysts aren't people; they're technical analysts.

I have been a technical analyst — or chartist, if you prefer — for 55 years, since reading that the stock market is the nearest thing to the classical economists’ definition of the perfect market, where price is determined purely in accordance with the law of supply and demand. More buyers than sellers, price rises; more sellers than buyers, it falls.

Shares frequently lead separate lives from the companies they represent. Buying and selling is guesswork, but can be educated or uneducated; technical analysis being the former. Short on theory, technical analysis is long on empirical observation. Freed from unreliable intellectual and emotional preconceptions, the technician is well qualified to forecast what prices are likely to do. Technical analysis is the triumph of experience over hope; fundamental analysis, the opposite.

Fundamentalists look at what they think will affect price in the future. Technical analysts just look at price: the balance between supply and demand, including all knowable facts and fantasies.

Most people think markets are cerebral. Wrong: they’re emotional. Thinking is what causes the largest losses. The price chart is a graphic representation of a psychological state, constantly updating market-players’ recognition of fundamentals and their willingness to discount the future.

Why do people buy? They think price is going to rise. Why do people sell? They think it’s going to fall. ‘People’ and ‘think’ are what matter, and all you need know is what people are thinking. When looking at price, you are not looking at real value; there is no such thing. It isn’t real value that drives markets but people’s perception of future value. Technical analysis is concerned not with certainty (there isn’t any in this business) but with probability: getting the odds on your side. If a technique works, we use it; if it doesn’t, we don’t.

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When athletes choke, their anxiety levels overwhelm their coping responses and they experience high levels of tension that prevent them from achieving their peak performance.

From the book Trading Athlete

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A technician is usually a contrarian, because the market usually goes against the crowd. You have to be bullish when people are bearish, and you have to be bearish when people are bullish.

Walter Deemer

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The trick it to have the discipline, the emotional control, and the objectivity to be able to buy when no one else wants to buy, and to sell when nobody else wants to sell. That’s the way to be successful; without that nothing else matters.

Paul Desmond

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According to Gartley, "a few well-chosen charts, religiously studied, can be of far greater use in making decisions to buy and sell stocks, than a large portfolio inculding several hundred stocks, which receive only casual attention." Second, technical analysis teaches one to follow the chosen stocks over a long period of time. As Schabacker puts it, "understanding of the technical actions of any stock or group of stocks can come from long study of actual market action and market history."

From the book: The Evolution of Technical Analysis

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