Big news for this week !!
Below are some announcements that may impact the markets this week:
There appears to be confusion at the Fed, sparked by recent comments from Ben Bernanke that created a bit of turmoil in the markets. William Dudley said yesterday that any decision to reduce asset purchases would not represent a withdrawal of stimulus.
If you are planning to stay up late on Sunday you can catch the Tankan report at 23:50 GMT.
Tankan Large Manufacturing Outlook
The Tankan report is released by the Bank of Japan on a quarterly basis and is conducted to provide an accurate picture of business trends of enterprises in Japan. A high reading is seen as positive for the JPY while a low reading is seen as negative for the JPY
A look at Ichimoku Kinko Hyo charts
This week we have a special report on Ichimoku charting. This method was developed by Goichi Hosoda after spending 30 year perfecting the technique (yes 30 years!!). He was a Japanese journalist and used the ‘pen name’ Ichimoku Sanjin which means ‘what a man can see from a mountain’. The implication is that if you stand on the top of a mountain you can see everything.
Ichimoku is a moving average –based trend identification system and differentiates itself from other moving averages by plotting lines using the 50% point of the highs and lows of a candle, rather than the closing price.
It also factors in time along with price action, similar to trading ideas of William Gann.
Ichimoku is made up of 5 indicators:
1. Tankan sen - short MA(default past 9 periods) Red line – indicator of market trend
2. Kijun sen – long MA (default past 26 periods) Blue line – confirmation (support /resistance line) and can be used as a trailing stop.
3. Chikou span – lagging line (previous 26 periods) Green line – if the line crosses the price in the bottom-up direction it is a BUY signal (and vice versa)
4. Senkou Span A – Silver
5. Senkou Span B – Dark Grey
Kumo – this is the space between Senkou Span A and B and is known as the cloud. The cloud edges identify current and potential future support and resistance lines. Thinner clouds can be seen as offering weak support and resistance.
Markets can be seen to be bullish when Senkou Span A is above B and vice versa for bearish markets. Traders look for the ‘twist’ in future clouds that potentially signal trend reversals.
The above is a VERY brief description for something that requires time to get used to. The effort is well worth it.
Here is a graphical example of EURUSD today using a 1 minute chart.
You can see that the general trend is upwards. The Green line crossing price upwards indicates a potential BUY signal with the Blue line offering a potential trailing stop. Confirmation of the strength of support is in the cloud size.
Happy trading!
The Hirose Team
Below are some announcements that may impact the markets this week:
There appears to be confusion at the Fed, sparked by recent comments from Ben Bernanke that created a bit of turmoil in the markets. William Dudley said yesterday that any decision to reduce asset purchases would not represent a withdrawal of stimulus.
If you are planning to stay up late on Sunday you can catch the Tankan report at 23:50 GMT.
Tankan Large Manufacturing Outlook
The Tankan report is released by the Bank of Japan on a quarterly basis and is conducted to provide an accurate picture of business trends of enterprises in Japan. A high reading is seen as positive for the JPY while a low reading is seen as negative for the JPY
A look at Ichimoku Kinko Hyo charts
This week we have a special report on Ichimoku charting. This method was developed by Goichi Hosoda after spending 30 year perfecting the technique (yes 30 years!!). He was a Japanese journalist and used the ‘pen name’ Ichimoku Sanjin which means ‘what a man can see from a mountain’. The implication is that if you stand on the top of a mountain you can see everything.
Ichimoku is a moving average –based trend identification system and differentiates itself from other moving averages by plotting lines using the 50% point of the highs and lows of a candle, rather than the closing price.
It also factors in time along with price action, similar to trading ideas of William Gann.
Ichimoku is made up of 5 indicators:
1. Tankan sen - short MA(default past 9 periods) Red line – indicator of market trend
2. Kijun sen – long MA (default past 26 periods) Blue line – confirmation (support /resistance line) and can be used as a trailing stop.
3. Chikou span – lagging line (previous 26 periods) Green line – if the line crosses the price in the bottom-up direction it is a BUY signal (and vice versa)
4. Senkou Span A – Silver
5. Senkou Span B – Dark Grey
Kumo – this is the space between Senkou Span A and B and is known as the cloud. The cloud edges identify current and potential future support and resistance lines. Thinner clouds can be seen as offering weak support and resistance.
Markets can be seen to be bullish when Senkou Span A is above B and vice versa for bearish markets. Traders look for the ‘twist’ in future clouds that potentially signal trend reversals.
The above is a VERY brief description for something that requires time to get used to. The effort is well worth it.
Here is a graphical example of EURUSD today using a 1 minute chart.
You can see that the general trend is upwards. The Green line crossing price upwards indicates a potential BUY signal with the Blue line offering a potential trailing stop. Confirmation of the strength of support is in the cloud size.
Happy trading!
The Hirose Team
