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[FF_Goal]

Adding this chart to show the interesting interaction of the Chikou line with the kumo as well as how the kumo seems to be supporting the counter so nicely.

When the counter first executed a kumo breakout, it seem that this might be bullish based on Ichimoku alone for the following points
i) price close above the kumo
ii) both tenkan and kijun line are slopping upwards with tenkan line above kijun line
iii) chikou line is above the price

Though with 100% hindsight now, seems like we also need to take note of the following
i) chikou is still inside the kumo just below SSA which now is shown to be a resistance
ii) the chikou line has yet to get as high above the price as it had gone under, so sort of lacking the momentum to surpass the previous downtrend

Current analysis seem that a long position can be entered if it manages to close above 0.365 for the following reasons
i) to re-establish enough momentum for the counter (for the chikou line to rise as high above price as it had gone under)
ii) if it manages to reach that price, it also means that the chikou has broken away from the kumo and the tenkan will also have broken above the kumo

However, the price of 0.31 has to be kept in mind since this is the flat SSB which might serve to pull the price down if the rise doesn't have enough momentum.

[grayghost]

Adding this chart to show the interesting interaction of the Chikou line with the kumo as well as how the kumo seems to be supporting the counter so nicely.

When the counter first executed a kumo breakout, it seem that this might be bullish based on Ichimoku alone for the following points
i) price close above the kumo
ii) both tenkan and kijun line are slopping upwards with tenkan line above kijun line
iii) chikou line is above the price

Though with 100% hindsight now, seems like we also need to take note of the following
i) chikou is still inside the kumo just below SSA which now is shown to be a resistance
ii) the chikou line has yet to get as high above the price as it had gone under, so sort of lacking the momentum to surpass the previous downtrend

Current analysis seem that a long position can be entered if it manages to close above 0.365 for the following reasons
i) to re-establish enough momentum for the counter (for the chikou line to rise as high above price as it had gone under)
ii) if it manages to reach that price, it also means that the chikou has broken away from the kumo and the tenkan will also have broken above the kumo

However, the price of 0.31 has to be kept in mind since this is the flat SSB which might serve to pull the price down if the rise doesn't have enough momentum.

Agree, but think maybe Price needs to close above 0.37 or 0.375. This price series is rather wild. Well behaved waveforms have an impulsive move, then corrective, then impulsive, etc. This Price was impulsive--non-overlapping--upward during May to mid-June. Then it began to stagger upward with overlapping waves till July. In July we had horizontal overlapping--corrective, but not very--then an impulsive wave down, which changed in late August to an impulsive move up, which stalled at a Chikou cluster. I think these rather wild rollercoaster swings call for a degree of caution, especially since there is more Chikou clustering not far above and, as you point out, a flat-top Kumo. So I would require Daily Price to close decisively above the previous high, not just above the Chikou itself. But basically I think you're right. Just my own take.

Bob

[grayghost]

ii) the chikou line has yet to get as high above the price as it had gone under, so sort of lacking the momentum to surpass the previous downtrend

I should also point out that the above condition is my own. The Ichi Wiki says only that "A strong Chikou cross buy signal takes place when a bullish cross takes place and current price is above the kumo." Many times, this condition alone may be sufficient; after all, that is why the Wiki calls it a "strong signal."

I guess what I'm saying is that I like to see a "super" strong buy signal involving a symmetrical punch through Price. Back-testing has convinced me that this condition often signals that sufficient momentum remains to force Price still higher.

But sometimes a breakout will occur where there is no pronounced crossing of the Chikou up through Price; instead, Chikou starts inside only mildly below Price or even inside it and punches up. A good steep punch that goes decisively above Price as Price breaks out of the consolidation, especially if the Chikou is going up while Price is on a downturn, can also be a "super" strong buy signal.

As I think I read at the bottom of a post in the forum, Jesse Livermore said something to the effect of: "The money lies in the watching and waiting and not in the thinking. Wait till everything is favorable before you trade." That is what my "symmetrical Chikou punch" tactic is aimed at. Use it at your discretion, as it will get you into the trade later than if you required only a "strong" signal as defined by the Wiki.

Bob

[FF_Goal]

Thanks Bob for sharing your views. There are certainly more to Ichimoku with respect to how the various lines interact with each other. I certainly liked the view on the rise of Chikou above price as much as it had gone below, at least within the 52 periods. It sort of gives added confidence to any signal triggered.

Currently, am also wondering if we need to consider the volume done to consider the strength of any Ichimoku signals. This is something that I believe might be important for stocks but which is absent in forex.