Q&A

1.  Does the number 26 comes from the number of trading days in Japan? 

[Answer]  No, the number does not derive from the number of trading days in Japan during the 1930’s nor does it relate to the number of rice trading days in one month.   If this is true, the standard settings would not work today.    The value 26 has to do with astrology.

2. Does Ichimoku work on lower time frames?  The web indicates it doesn’t?

[Answer]  It does work on all time frames and works for all instruments.   We trade it on 512 tick, 10m, 30m, 120m, 240m, daily, weekly, and monthly.     The people that make this statement do not understand trading.   Like any other system, if you trade on a lower time frame without referencing the higher time frame, the trade will fail!   Also, trying to get 100 points out of a 10 minute currency trade when the normal trend is around 20-40 points is another reason people make these statements.

3.  Should I alter the standard settings?  I see other people doing it.

[Answer]  The standard settings work.   When you alter the standard setting, you are “curve fitting” for the instrument, time frame, or environment.   This will not work.     There is no system that is 100% winner.   You will have losing trades.   People do not give a system a chance to prove itself.   We use the standard settings for any instrument and any time frame.

 4.  Do you use any other Indicators beside Ichimoku?

[Answer]  We use ATR (Average True Range) for a buffer and that is it.   We are pure Ichimoku traders unlike other people.   Ichimoku has the technical analysis, money management, and psychology of trading built within it!

5.  I noticed you do not trade the Tenkan Sen/Kijun Sen Cross Strategy…why?

[Answer]   The Tenkan/Kijun Sen strategy is the worst strategy out there.   Everyone is promoting it and trying to sell Signals and automated strategies on it.   The true test of a system is during a consolidation pattern…what happens?   Does your system keep you out of trades or do you exit trades for a minimal loss?     If you have huge losses during a consolidation pattern then you don’t have a good system.   What happens to Tenkan/Kijun Sen Strategy during a consolidation pattern?  You test it yourself and you will see why we DO NOT trade it.

6.  You have a bad rating at the following link :  Click Here.   Why?

[Answer]  We run a very strict program.  All students understand our rules when they join our program.  We just don’t offer classes, we take RESPONSIBILITY!   One of the things that we do not accept is students putting on trades without STOPS.   This is dangerous and the quickest way to “blow out” your money.  Students who do not place Stop on trades are automatically kicked out of the program after a Warning.   That is what happened in this situation.   Of course, people get upset and they post a negative rating.   Someone that has a 100% rating is most likely not challenging their students.   In order to do help people, you have to be direct, and focus on their weaknesses, and some people just can’t handle that, so you may have bad ratings because some people won’t like what you are saying.

7.  How does the Chikou Span impact your trading decision?

[Answer]  The Chikou Span is an optimization indicator.    It tells you the momentum of the indicator.   If the momentum is not on your side then the trend will not take or if it does, it will only go for a little while.    Some people on the web say that the Chikou Span “statistically does not work”.   This is COMPLETELY INCORRECT.   It is one of the most important indicators in Ichimoku.    Why would it have been created back in 1930 if it does not work!    Some people just don’t take the time to understand the purpose of the indicator.

The way to read the momentum is as follows:

– Bullish:  Chikou is above the price from 26 bars ago

– Bearish:  Chikou is below the price from 26 bars ago

– Neutral:  Chikou is touching price from 26 bars ago.

8.   What is the purpose of the Future Cloud?

[Answer]   The future cloud is made of two Ichimoku indicators:  Senkou Span A and Senkou Span B.   The current calculates for SKA and SKB are always written in the future.   They are the future cloud.   The reason for writing them in the future is that current calculations create the support/resistances for the future.   What influences you now are the support/resistance that were created awhile ago i.e. 26 bars ago.  Therefore, the cloud is shifted 26 bars into the future where you have a current cloud (above/below the price) and a future cloud.    If the future cloud is bullish then SKA > SKB.   If the future cloud is bearish then SKA < SKB.

The question is how does it affect your trading?   If you are trying to take an instrument Bullish, the future cloud has to be bullish.   If not, the bullish institutional trend will not exist.