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[illusioniz]

Hi all experts,

I am confuse about the distance between Tekan & Kijun with respects to price.

According to the trading plan on page 43:

Bullish
--------
ENTRY PRICE has to be less than 200 pips from the Tekan Sen.
ENTRY PRICE has to be less than 300 pips from the Kijun Sen.

When reading throughout the book, for example Page 46,
Current Tekan Sen Distance = Current price - Current Tekan Sen value = 3.272 - 1.3189 = 83 pips ( within 200 pips )
Current Kijun Sen Distance = Current Price - Current Kijun Sen value = 1.3272 - 1.3154 = 118 pips ( within 300 pips )

Q1. So are we using the ENTRY PRICE or CURRENT PRICE as the reference?


Q2. Assume we are using CURRENT PRICE as the reference, statement from page 95 is a bit confusion. It states:
Figure 3.80 illustrates that the bullish alert was triggered on Jan 14, 2008. In examining the Ichi chart for that date, all the indicator are "prime" for an entry The entry information is shown in Figure 3.81. From the chart, it is apparent that we still cannot enter. This time, the issue is price from the Kijun Sen. Therefore, we have reset the alerts and wait again as illustrated in Figure 3.82.

The Distance from current price to Tekan Sen (113.2 pips) is within 200 range according to trading plan.
The Distance from current price to Kijun Sen (256.2 pips) is within 300 range according to trading plan.

Why we are required to change the Entry to Alert ??

According to calculation with refer to figure 3.81:

Bullish Trend
--------------
Current price = 1.48680
Tekan Sen = 1.47548
Kijun Sen = 1.46118

Current Tekan Sen distance = Current Price - Current Tekan Sen price
                                      = 1.48680 - 1.47548
                                      = 0.01132 (113.2 pips)

Current Kijun Sen distance = Current Price - Current Kijun Sen price
                                     = 1.48680 - 1.46118
                                     = 0.02562 (256.2 pips)

[sunman4008]

Hello,

I see where the confusion is according to the pages highlighted.   Definitely can do a better job here.     Initially, I look at the closing price to see if it is within limits.   If it isn't, I move on without calculating an entry.   On page 95, the closing price was within limits so then I figure out the entry and calculate everything again. 

The answer is you should be taking it from the Entry price because this rule is set in order to keep your risk per trade within a certain range.     

Does that help?

-Manesh

[illusioniz]

Hi Manesh,

That helps to clear my confusion.

Thanks alot for the response.

-------------------------------

Another similar problem raised which confuse me while backtest. I wish you can give me a help on this, Manesh. Thanks in advance.

When i backtest reached the figure 3.88, I calculated the distance of KS & TS with respect to the Entry price.

Entry price wrt Tenkan Sen = 1.50250 - 1.47668 = 0.02582 ( 258.2 pips NOT within trading plan 200 pips)
Entry price wrt Kijun Sen = 1.50250 - 1.46749 = 0.03501  ( 350.1 pips NOT within trading plan 300 pips)

1. Any particular Reason for the entry that is not within trading plan ??

[sunman4008]

Hello,

TS and KS were pointing upwards.  Then that exists...distance does not matter.

-Manesh