Ichimoku MA: Clean Trading Using Moving Averages and Ichimoku Cloud
The Ichimoku equilibrium chart provides investors with a unique perspective on price movements and market balance. However, it is often complex and can lead to missing or misunderstanding important information. To address this, we have developed a simplified and intuitive indicator by excluding the Conversion Line, Base Line, and Lagging Span of the Ichimoku equilibrium chart. This streamlined chart helps facilitate clear and quick decision-making for trend-centered trading.
Simplified Cloud Trends
The 'cloud,' one of the key elements of the Ichimoku equilibrium chart, is an excellent tool for understanding market trends. The cloud itself creates support and resistance areas based on past and future price movements, providing a clear indication of the direction and strength of the trend.
The two lines of the cloud, the Leading Span A and B, act as signals by crossing each other, providing advance notice of trend changes. This helps investors react quickly and make better trading decisions.
This approach utilizing only the cloud reduces complexity and allows for more concise and intuitive trading. Sometimes, the simplest method can be the most effective. That is the key essence of trading strategies using the Ichimoku equilibrium chart.
Moving Averages and Golden Cross
We utilize the state of the cross between two moving averages to determine entry points more cautiously. It is a powerful tool for predicting trend changes, considering long entry when a golden cross occurs and short entry when a death cross occurs. This way, we can employ a trading strategy that is not only mindful of market volatility but also straightforward and clear.
- Long Position
- If the cloud indicates a long trend and the candle breaks above the cloud, we enter a long position. If the candle is positioned above and the moving averages make a golden cross in an upward direction, we add to the long position.
- Short Position
- Conversely, if the cloud indicates a short trend and the candle breaks below the cloud, we enter a short position. Similarly, if the candle is positioned below and the moving averages make a death cross in a downward direction, we add to the short position.