Learn Ichimoku Kinko Hyo In Under 30 Minutes

the Ichimoku kinko hi-oh indicator was created in 1930s Japan spot Forex didn't even come about until 1996 so should we bother learning something that's this old and outdated usually no but this is Japan all right the things they make just tend to over time be very well built and tend to age very very well so let's at least learn the basics of Ichimoku and then you can go decide for yourself buy me this after hundreds of requests and I mean it literally hundreds we are finally here traders it is time to learn it you moku but in this video we are learning the basics I'm gonna talk about actual strategy pieces in next week's video I think it's important we break this up into two because those of you who've been with me since the beginning of those of you been with me for a long time understand that a lot of people are finding this channel for the first time and they just want to learn how to trade this thing so that's what this video is gonna be about so in this video we're gonna explain the pieces that make up the whole of each moku and then once we've done that I'm going to go over the basic instructions on how to actually use it and go about trading it now there's two strategies in particular there's several strategies overall but there's two that I like the beginners can actually implement and use right now and you're gonna learn that in this video too and I'm also just gonna kind of go over why I think it's a good thing and a good tool for beginners to use and I have recommended this to beginning traders quite a bit but there's reasons why and I think those reasons why are very important but as always before I make these trading videos I often like to go see what other people's videos on the same subject look like and as usual they're pretty boring and tedious and not very helpful so just understand compared to most videos you will see on this topic what you will not see here is other common strategies there's a lot of different ways you can go with this we're just going to go over two basic ways that you can use this thing and we out flooding you with all these other options will talk about more options next week but for now we're just gonna go over to now everybody out there who likes to trade HMO goo has different ways and theories on how all these pieces are used and how they fit into one another I get that but again it's way too much to go over especially for people who are just trying to learn this for the first time remember that so I'm also gonna keep my overall opinion on these pieces kind of out of the way like I said we're gonna discuss all of this next week as we really start drilling down into this thing but for now we're just learning how and I think it's gonna be a lot more helpful than most videos are sometimes doing the research part of this is pretty painful because I have to sit through these videos they're way too long a lot of these are over an hour long to learn something that doesn't need an hour's worth of your time but they go over dumb stuff they go over parts that don't mean anything in the end such as like the history behind it what all the trend Japanese translations mean for the lines and how all these lines are calculated who cares means nothing in the end most people coming here to watch a video to learn how to trade each remote are doing it because they want to have success in forex and make money and no nonsense Forex because it's no nonsense Forex these are the things we focus on so I think you're gonna like what you see and as always we're gonna break it down into smaller pieces to make this whole thing so much easier to digest and understand so you can just hit the ground running once this video is over and start trading it right now if you wanted to so let's begin now there are five main pieces I would say to this overall system and we're gonna go over them now kind of group them into their own little categories so the first category is the moving average crossover part this is where entries are made all right I don't know if they're really considered moving averages or not they don't move smoothly like moving averages tend to do they're a little jerky err but just think of this as a moving average crossover because when they cross that is the system telling you to enter now you have the tenkan son which is the one that moves faster and you have the keygen sin which is the one that moves slower once we get to the art you're gonna see exactly how these play but just know every time I say ten con I mean the fast moving average every time I say the keygen I mean the slower of the two all right then you move on down to the cloud the sin qu span a and B are the two lines that make the cloud the lines on their own are not very significant it's really the cloud that you want to pay attention to when using this system and what the cloud does is it is there to say whether we are allowed or not allowed to trade in the first place that is the main purpose of the cloud being there and if you just think of it in those terms this whole process becomes a lot easier people really try to over complicate this and it's just a cloud on a screen and if price sits above it you're looking for lungs and if price sits below it you're looking for shorts that's really all you have to worry about and then there's this other piece that some people use and some people don't even bother with and whether or not you use it as really up to you it's called the chiku span I guess if I don't even know if I'm saying it right but it's kind of the wild card people either really nerd out and try to find all these different ways they can utilize it or they just say you know what that line is pretty useless in the grand scheme of things I'm just not going to use it at all because I'm better off that way so that decision is ultimately up to you but we are going to talk about it and show how it does factor in if you choose to use it yourself so just to make things super easy we're actually going to start with the cloud just so you can see what that looks like and what its main purpose is I'm going to show you what it looks like on a chart and then we'll actually go to another slide or you can take notes if you like so this is the euro dollar daily chart on Mt 4 which is the charting software that we use here at no-nonsense Forex now the problem is if I were to just put the whole Michinoku up on my chart on Mt 4 it looks awful and very confusing when you're trying to teach somebody this for the first time so we're just going to break this up into pieces and by doing that it should be a lot easier to follow along so let's just keep the cloud on and as you can see price is inside the cloud so if you were getting a signal to go long or short you still would not take it more often than not because when it's inside the cloud that means there's some indecision going on here and you should probably wait until things are a bit more definitive this is one of the really good things that your Mook who does it prevents you from taking trades that are not high probability trades to take and as a beginner that is so crucial because when we first start trading we want to take everything but as a beginner we have no money management no disciplinary skills so taking every tre is a really really bad idea so what this does at least is attempts to keep you in trades that are only going with the overall trend and the kuhmo cloud as you see here is one of the biggest tools that helps you do that that is its main reason for existing there are other ways to use the cloud to trade we'll go over that in next week's video but for now just understand its purpose here you're going to notice does change colors from positive to negative that is some other stuff that I don't think works very well but we will again talk about that later just use this as a beacon and say if prices below it I'm taking shorts if prices above it I'm only taking Long's those are the rules that's that so if we move to the dollar yen daily chart it's way below the cloud and so at this point we are looking for shorts and we will only be looking for short trades until further notice all right the overall trend is absolutely downward we don't want to fight that we just want to go with it because it is an our best advantage to do that if we get it the opportunity to go long down here we ignore it because it's just not in our best interest to do so and that's where this cloud comes into play here so for your notes these are the overall basic rules of the kuhmo cloud in Ichimoku if price is sitting above the cloud only long trades are allowed now we're going to talk about how to find those trades soon but just know you're only allowed to take long as if is sitting above the cloud and conversely if price is below the cloud you may only take shorts and do nothing else for some reason price is sitting in the middle of the cloud like you saw in that euro dollar example no trades are allowed it's an indecision point and we only want to trade when the trend is moving in one decisive direction now because of these rules this system can be a bit boring to trade because a lot of times it's because the rules are so harsh you're not gonna get a lot of trades sometimes sometimes you're gonna get a lot sometimes you're gonna get almost none so what you can do if you're a little more experienced is if price is actually inside of the cloud you can take a long or a short trade if the rest of your system gives you one but just take it at half risk risk half of what you would normally risk on a regular trade because the odds aren't totally against you here but they're also not completely in your favor so if you have a good entry system you can go ahead and use it inside the cloud if you really want to and you've had you've had a little experience in the past with this but do it at half risk it's in your best interest trust me so those are your basic rules of the kuhmo cloud so now that we've covered this part here let's cover this part up here because this talks about where and how you actually make those entries you have the faster moving average and you want it to cross the slower moving average so let's talk about this and let's take a look at this so we're back on the charts and this time we're on the euro yen I just wanted a cleaner example so this will be easy to see for you but we got the cloud on now we're gonna go ahead and add those two other pieces to see how they cross each other and how we determine where our entries are going to be so we pull this back up and this is the chiku span we still don't want that to show but this here is the Tankian CIN and this is the keygen from this point on every time I explain this and a video the t'ankin is going to be read the keygen is going to be blue actually let's make it a lighter color keep a blue but make it aqua blue so it pops a little better I know some of you guys are watching this on your phone and these lighter colors just tend to show up a little better so we do that and then once we hit okay here they are so you're going to notice the red is definitely the faster of the two and it crosses the slower at certain points and that's this indicator telling you where your entries are now that doesn't mean you just blindly enter everyone you see the cloud has to come into play too and on this chart we are going to talk about an exception to the rule that we haven't really come across yet so there's another good reason I put this chart up so let's take a look you see right here the red crossing up over the blue so this is a long signal problem is price is well below this cloud this is not an entry all right and the basic discipline we're gonna follow the rules to the letter style avicii moku even though it eventually went up took a while but it did go up this would not have been a trade so you don't even worry about this alright now here's something interesting over here the very next entry you saw was the red crossing down below the blue but price was actually going long above both lines doesn't matter if we were doing this to the letter in beginners mode we only worry about the fact that this crossed down but price was over the cloud so this would not have been a trade either all right over here price was inside the cloud and this didn't cross until this candle was finished so you if you would have taken this trade and you were being a little more relaxed on the rules and you said taking trades inside the cloud is okay you would have entered right here let's see how many pips I would have maxed out as pips so depending on where your take profit was that could have been a win it may not have been but then a true signal occurred and that was the very next one you see the Red Cross down below the blue which indicates a short and price just happened to be below the cloud so that is an absolute entry I think you have entered right about here and needless to say that would have been a very nice trade so discipline is your friend here kind of knocked you out of a winner here was a bit confusing this was a small win that's fine you're worried about these really nice big wins this is what you want to put in your pocket because as a beginning trader you're gonna be taking quite a few losses where you probably won't be taking as many later on down the road so you really want to jump on the chance to get trades like this because even though all these pips might not go in your pocket they're gonna be able to absorb a lot of losses down the road and if you are using smart discipline you are going to do everything in your power to pass up on trades that have a higher probability of losing and participate in trades that have a much higher probability of winning and this HMO COO kinko hi-oh system of indicators is designed to put you in those winning situations and keep you out of those other situations where the probability of losing is greater now part of having discipline is being able to look back and even if even though these trades that would have made you money probably understanding that you know what in the end these were not the most optimal traits to take Ichimoku has my best interest in mind and if I just wait it out I can get into the really good trades when the opportunity presents itself now it might be kind of boring but at no-nonsense Forex we advocate you trade all 28 combinations of the eight major currencies so because of that there is a much greater chance that on any given day you will have the opportunity to enter a trade and if you're using the daily chart which we also recommend you do because there are so many benefits of that I'm going to put the reasons why I did a podcast on each of those reasons I'm gonna put them down in the description if you want to look at those later but if you use the daily chart and you trade 28 pairs even if you don't get a trade entry it's probably just gonna be a matter of one or two days down the road until you actually get one and that's good too because this also promotes discipline and it prevents you from over trading smart profitable traders do not force trades that aren't there they wait until the right opportunity presents itself and then they strike and that's how it's done so for your notes here is what you do when the tinkin crosses upward over the keygen and prices over the cloud you now have the green light to go along on the other side of things when the tenkan crosses the keygen downward crosses over and below the keygen and prices below the cloud this is where you go short and these are the main rules of entry for basic Ichimoku trading now before we even talk about that fifth part that wild card line that some people use and some people don't I want to highlight one other piece of this that I think is going to serve beginners very well and that is the fact that money management in a way is already built into this thing all right so traders for losses always have a stop loss at play never enter a trade without having a stop loss somewhere and if you're confused as to where to put that stop loss I'm going to include a link for my risk video down in the description as well it'll tell you exactly how to do it give you a really good structure and how to figure out your risk and put the stop-loss in a really good place every time so for losing trades make sure you have that there but for winning trades like your trades winning now what do you do you know how long do I let this thing go how would I even know how long to let it ride well what you can do if you want and it's really not a bad way to go at all just let this winning train run until price finally crosses and closes beyond the tent gun the other way so I'll show you what this looks like so here on the Aussie dollar daily got a lot of noise a lot of trades we didn't really want to take until right here so you finally saw that separation where the tanken had closed down beyond the keygen so that would have been let's see right here it looks alright so you enter short here and you get this nice run now while this is going on you don't have a crystal ball to see how far it's actually gonna go for you so you need something to say ok once this happens you get out of this trade and right here we're price finally crossed and closed above it is where you would have gotten out now you're never gonna get out the bottom don't ever think you're going to that's just not how forex trading is but you need a reasonable place because if you would have waited longer and hope that this trade would have gone down even further you'd have ended up losing more profit so this is good this is what you want you want a place to say okay price is now probably going to go the other way for a bit or it's going to stall out now's a good time to exit and move on to another trade and all tolled has over 100 pip move on the Aussie dollar most people would have gotten profit out of that but if you currently do not have a system for managing winning trades you could do a lot worse than this this is pretty good especially for beginners and incorporating it into your trading means you just have one less thing to worry about all the crazy emotions we have swirling in our head once we're in a really great winning trade can be overwhelming and sometimes we just need someone or something to tell us okay let me know when this trades over so I can close it out and that is what HM oku can do if you know how to do it right and if you allow to do its job so moving on let's talk about that why El Chico span this is that fifth piece of the Ichimoku puzzle that we have yet to talk about so all it is it's not any more complicated than this twenty six candles behind where prices right now all you do is plot a point at the exact price that you have right now and you just do that every single time there's a new candle and then over time a line will connect those points and you have the chiku span now if that's confusing and you to understand what it looks like let's go take a look at it before we go too far into this slot so I'm here back at the euro yen but we're on the weekly chart I had to find a situation where we are just about to get a trade so we can check the chiku span to see if it allows us to do that so as you can see right here I'll zoom in to make it easier we are going to wait for this candle to form and if after it forms this read the tenkan has crossed below the kijun we have a short trade because price is also below the cloud now if we wanted to add one more layer of discipline and security on to our trading we can go ahead and add the chiku span here if we wanted to so we'll go ahead and make it yellow nice and bright and just add it on so like I said 26 candles behind price prices right here on the line and if you just go 26 candles back you will have this and this was the case yesterday and 26 days before everything else that's all it does it just traces that point in time 26 candles before where prices right now that's it so how you would use it is you would also say hey where is the chiku span I want to go short it needs to be below the cloud as well if it's not I'm not going to take this trade but in this case it absolutely is it it's right here the cloud is way up there it's well below the cloud we're gonna wait for this candle to close at the end of the week and when it does if all things remain where they are right now we officially have a short trade on the euro yen weekly chart and we are allowed to enter it you will run into situations where the chiku span is hiding inside of the cloud like probably right here you probably have the chiku span more inside or sometimes it might even be above the cloud and if that's the case and you're trying to take shorts you are not allowed to trade that's gonna knock you out of some good trade sometimes but at the same time it might also keep you out of really bad trades now if you really want to nerd out there's a lot of other ways to use this thing but the basic way to use the chiku span when trading basic Ichimoku strategy is this right here we not only want to trade trends we want to trade trends that have been trends for a while and that's where this line comes into play so for your notes just know it's completely optional a lot of people don't use it at all some people love it totally up to you but if you're using it it must be above the kuhmo cloud if you are allowed to go long it must be below the cloud if you want to go short if it is not you pass on the trade but it is yet another piece of the Ichimoku puzzle that is there to help prevent you from taking trades that are not completely optimal trades to take all right so now you know the pieces now you know their main intention and you have a basic strategy set up and this strategy really is great for beginners it has everything it shows you how to enter trades it even has some built in money management and a lot of discipline already built in to one overall system and really the big piece there for me is the discipline piece people don't even know you could have the best system ever created if you don't have discipline in your trading it doesn't matter how good that system is and beginners almost never have it this thing forces you to only take certain trades and I think that is the best part about it overall it eliminates that temptation to use other tools as well HMO co traders typically just trade HMO COO and one of the benefits of that is it eliminates all the noise of all the other possible tools out there you can use and in doing so it just gets you used to trading it gets used to looking for entries it gets you used to passing on trays that are not in your best interest and by doing this and having this already figured out for you you can more focus on how to enter a trade on your platform how to manage your trade all those little things that you don't want to be fumbling with down the road now is trading basic Ichimoku strategy going to get you to the promised land someday no I would be shocked if there's anybody out there trading at a pro level that is trading this way however most beginning forex traders are complete toast before they even start because they're so all over the place they never learn how to stay in the pocket and just trade something that makes sense and that already has money management and discipline tools built into it this is a great way to start trading and if you do this right and you don't deviate from it you should see results but one thing I want to make sure you do when you are starting this out set the rules you want to follow are you gonna use the chiku span are you gonna trade when prices in the cloud how are you going to approach this you set these rules early on and you stick with them don't all of a sudden loosen up on your standards because you're bored and you want to take a trade just for the hell of it there's no way to know how good your trading can be in this system if you start doing things like that so have rules stick with them and track your progress do this for a while see how it turns out it might turn out great for all I know I mean I don't know anybody who's trading basic strategy who's doing really well you know there's millions and millions of traders out there I don't know all of them I only know a small fraction and that's not a great sample size so if this way of trading is something you want to try and I think your beginning trader you certainly should give it a go just do it the right way so you can actually see what real results look like here alright so in conclusion I do like this for brand new traders but there are so many other approaches to this style of trading I know there's people watching this video right now that are screaming because there's so many other things that I'm leaving out I'm gonna get to those in the next video and I'm still not gonna be able to touch them all because there's a lot of different avenues you can take here but when you're starting out keeping it simple in basic is absolutely the way to go and then afterwards if you still like the Ichimoku style of trading you can branch out into different methods and just know there are many different methods and a lot of those methods are a lot better than the overall basic strategy but if you start jumping into those too soon it's gonna mess you up so start trading basic strategy and in the very next video I do it's June 5th 2019 so if you're watching this in the future chances are I have the second part of the city mopey series already finished that talks about some of the other approaches and the approach that I personally like myself and I will put the link down below in the description and also on the end screen of this video so you can just go straight to it but if that video interests you and you liked the way I explain this you should subscribe and hit the bell I mean this is a really great channel to follow you will notice that I break things down very differently than most other channels do and thousands of traders all over the world really like this approach this channel went from 55 subscribers to over 85,000 subscribers in less than a year that is no accident I cover just about every topic there is to cover and I will also put the beginners video down below to where even if you're a beginning Forex trader or not that video will show you how to best navigate this entire channel because as I'm making this right now there are almost over a hundred videos already on it so order is pretty important and that's what that video does but either way traders I hope this is helpful and if you're already beyond this point that it was at least enjoyable and the really hardcore stuff is coming next week so stick around for that in the meantime go get it

Channel: No Nonsense Forex

Views: 464,588

Rating: 4.9198527 out of 5

Keywords: ichimoku, ichimoku kinko hyo, ichimoku cloud, learn ichimoku, learn ichimoku kinko hyo, no nonsense forex

Id: tK28-mboOXM

Length: 28min 58sec (1738 seconds)

Published: Wed Jun 05 2019