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One Indicator For Stable Profit - Ichimoku Kinko Hyo

 Ichimoku Kinko Hyo is one of the technical indicators that are "TREND FOLLOWERS" because by looking at the chart at a glance, a trader will very quickly see the trend that is going on at that time. But, one tool cannot be a decisive factor in decision-making. This is the main principle of technical analysis that we should pay attention to as a trader who thinks about how to make money from binary options to profit stably every day.

However, there are exceptions, such as the Ichimoku Kinko Hyo Indicator, which can find the deal that best suits the rules of the Dow Theory "price takes everything into account". Because the Ichimoku Kinko Hyo Indicator uses several data points in the past and produces visuals about the results of price movement analysis very well. Although the Ichimoku Kinko Hyo Indicator was created for the Nikkei stock index (Japan), according to the effects of many years of practice on dynamic Forex, We can also get a stable profit, even in the form of a "classic" indicator.

The data seen on the chart is a reflection of human behavior/psychology that is active in the market. The calculation is based on moving averages, so the Ichimoku Indicator is most effective in trend periods. When the side range has a width of 20-30 points, We can open a quick option when bouncing off the Kumo Cloud line.

Main Purpose of Ichimoku Kinko Hyo Indicator

The main purpose of the Ichimoku Kinko Hyo indicator is to confirm chart patterns and candlesticks. But We can act differently: Ichimoku gives the first signal, which is then confirmed by the pattern.

Example of Using the Ichimoku Kinko Hyo Indicator on the Binary Options Platform "DERIV"

  • Type: Inclination.
  • Timeframe: M1-M5. In this example we use M1, but with an increase in the analysis period, the accuracy of the signal increases.
  • Trading time: All Forex trading sessions.
  • Premium percentage option: Not less than 70-75%.

The structure of the Ichimoku Kinko Hyo indicator 

The Ichimoku Kinko Hyo Indicator chart shows five lines, four showing the median price range for a certain number of historical periods. Dynamic changes in buyers/sellers begin after breaking the price line, similar to the Elliott wave pattern, but the signals are more reliable here.
Our exact binary options strategy uses three indicator lines:

- SenkouSpan A/ B or Kumo Up/Down . The line is shifted forward and gives the main signal of a trend change.

Between the Lines of SenkouSpan A - B, there is an "Ichimoku (Kumo) cloud", usually highlighted on the chart with shadows. When the price chart moves in this area, it means a temporary consolidation, a breakout/rebound from the border gives final confirmation to another signal.

Chinkou Span. The third forward line shows the dynamics and direction of the price as a whole.

Options are opened on the trend (reversal and crossing of the lines) and in the Kumo channel (break or rebound from the border):

- Crossing "SenkouSpan A - B". Most often means the start of a rollback towards Span A, which may lead to a final reversal. The signal may be ahead of the curve since both lines are ahead of the price, but in this case, we are always waiting for confirmation from indicators, such as CCI or Momentum.

An important note for binary options trading: the breakout of the Span b line is only the first sign of a change in rising/falling strength and a possible reversal. Furthermore, there may be a failed level retest, a rapid increase/decrease in volume, and other events that do not fit the trading strategy. If you are a beginner do not open options until the situation is fully determined.

Open a deal on the next candle after binary signals. The expiration time of the option should be at least 5-7 minutes, although one minute is chosen as the working time frame.

CONCLUSION: When applied correctly, the Ichimoku indicator is a fairly powerful tool for predicting price movements. But, we remind you once again that with the basic parameters of Ichimoku Kinko Hyo, depending on the characteristics of the asset, both can give reliable signals and become very late even at H4-W1 intervals (a week). On Forex, pay attention to how binary options signals work and reduce the number of periods if necessary.

Rejection: The methods or trading signals available are only for informational purposes and are by no means an action guide. The owners of sites and programs do not accept any responsibility for using the information provided on the website and in the programs already created, for any errors. The information on this site does not constitute a public offering.

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