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    Trading with Ichimoku: A practical guide to low-risk Ichimoku strategies
    Trading with Ichimoku: A practical guide to low-risk Ichimoku strategies
    Trading with Ichimoku: A practical guide to low-risk Ichimoku strategies
    Ebook221 pages2 hours

    Trading with Ichimoku: A practical guide to low-risk Ichimoku strategies

    By Karen Péloille

    4.5/5

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    About this ebook

    The English language edition of the successful French publication.

    The Ichimoku Kinko Hyo trading indicator is an information-rich and extremely reliable tool that can be employed across all time frames. Once you have learned the subtleties of the method and understand its unique system of validating price movements, it will improve your trading.

    Trading with Ichimoku is a practical handbook explaining the different elements of the Ichimoku system of chart reading, from the description of each of its five lines to their interpretation within a wider process of trading analysis.

    You will rapidly conclude that even though there are only five lines to look at on Ichimoku charts, the information given is more than enough to achieve a detailed and broad view of market and what the price action reveals.

    Part 1 is devoted to the theoretical description of the various components making up Ichimoku.

    Part 2 explains how to trade with Ichimoku Kinko Hyo through several examples in various time frames.

    Part 3 introduces trading methods that combine classical trading tools with Ichimoku Kinko Hyo.

    Explanations and examples are illustrated throughout with detailed colour charts.

    Whether you are a beginner or an accomplished trader, you should add a knowledge of Ichimoku to your armoury to improve your analysis and your results.


    Reviews from French readers:

    “I highly recommend this book for anyone who wants to learn to use Ichimoku.”

    “Clear explanations and especially great tips on how to trade.”

    “Very informative book with clear and precise examples.”

    “Good balance between the theory, analysis and trading.”
    LanguageEnglish
    PublisherHarriman House
    Release dateJul 17, 2017
    ISBN9780857196163
    Trading with Ichimoku: A practical guide to low-risk Ichimoku strategies
    Author

    Karen Péloille

    Karen Péloille has an extensive educational background in econometrics (statistical and economic modelling) and market finance. She has been trading for her own account since 2008. Karen specialises in trading with Ichimoku and teaches the principles of this system to professional and private traders in France and in the United States. On top of her trading activities, Karen is a technical analyst and adviser for private clients and portfolio managers. You may find her technical analysis on her Twitter account: @KarenPeloille You can contact Karen at karen.peloille@maxima.fr

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    Reviews for Trading with Ichimoku

    4.5/5

    26 ratings8 reviews

    What did you think?

    Tap to rate

    Review must be at least 10 words

    • 5/5
      Des exemples qui illustrent la théorie.
      A lire et relire
    • 5/5
      Best book talking about ichimoku, this book is highly recommended
    • 3/5
      Very informative but mixed up too much with other western technical,should only focus on ichimoku
    • 5/5
      Interesanta cartea, merita citita sunt lucruri care iti deschid ochii cand privestii in tranzactiile trecute. Daca vrei sa inveti despre ichimoku cloud iti recomand sa o citesti
    • 5/5
      una verdade3ra obra de arte, me ha gustado mucho y ha servido para robustecer mis bases en la actividad del trading
    • 5/5
      This is the best book i have ever read in my entire life. I simply loved it.
    • 4/5
      One of the most complete books on Ichimoku. The only draw back is the language. The english used (especially in the first chapters) is not always clear and require some extra time to understand.

      1 person found this helpful

    • 5/5
      This is the most comprehensive book on Ichimoku on the market right now.Trust me i have read over 15 books on the subject matter. Karen shows not only a strong theoretical understanding of the strategy but also firm practical command of the strategy. This is all you will ever need to read on the subject and go straight to your trading station and implement.

      2 people found this helpful

    Book preview

    Trading with Ichimoku - Karen Péloille

    TRADING WITH ICHIMOKU

    A practical guide to low-risk Ichimoku strategies

    Karen Péloille

    harriman house

    HARRIMAN HOUSE LTD

    18 College Street

    Petersfield

    Hampshire

    GU31 4AD

    GREAT BRITAIN

    Tel: +44 (0)1730 233870

    Email: enquiries@harriman-house.com

    Website: www.harriman-house.com

    First published by Maxima, Paris (France). All rights reserved

    This English language edition published in Great Britain in 2017

    Copyright © Maxima

    The right of Karen Péloille to be identified as the author has been asserted in accordance with the Copyright, Design and Patents Act 1988.

    Print ISBN: 978-0-85719-615-6

    eBook ISBN: 978-0-85719-616-3

    British Library Cataloguing in Publication Data

    A CIP catalogue record for this book can be obtained from the British Library.

    All rights reserved; no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior written permission of the Publisher. This book may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover other than that in which it is published without the prior written consent of the Publisher.

    Whilst every effort has been made to ensure that information in this book is accurate, no liability can be accepted for any loss incurred in any way whatsoever by any person relying solely on the information contained herein.

    No responsibility for loss occasioned to any person or corporate body acting or refraining to act as a result of reading material in this book can be accepted by the Publisher, by the Author, or by the employers of the Author.

    All the charts included in this book have been created on FXCM Trading Station 2.

    Contents

    About the author

    Foreword – by David Linton

    Introduction

    Part 1. ICHIMOKU THEORY

    Chapter 1. Theory

    Chapter 2. Reading Ichimoku Charts

    Chapter 3. Analysis

    Part 2. ICHIMOKU IN PRACTICE

    Chapter 4. Trading

    Chapter 5. Advanced Techniques

    Part 3. ICHIMOKU AND OTHER INDICATORS

    Chapter 6. Fibonacci

    Part 4. THE ART OF DISCIPLINED TRADING

    Conclusion

    About the author

    Karen Péloille has an extensive educational background in Econometrics (statistical and economic modelling) and market finance. She has been trading for her own account since 2008.

    Karen specialises in trading with Ichimoku and teaches the principles of this system to professional and private traders in France and in the United States. On top of her trading activities, Karen is a technical analyst and adviser for private clients and portfolio managers.

    You may find her technical analysis on her Twitter account: @KarenPeloille

    You can contact Karen at karen.peloille@maxima.fr

    Foreword – by David Linton

    When I first published Cloud Charts – Trading Success with the Ichimoku Technique in early 2010, I had no idea how much interest it would create in the subject. Until then all the works were in Japanese and there was a real lack of solid explanation of Ichimoku charts.

    As more and more traders and investors around the world started using Ichimoku, the construction method of these charts became widely available online. Bulletin boards and online forums and chat rooms began to buzz with the latest Ichimoku signal announced here or there. So many of these interpretations regularly seem to be in conflict. The instant gratification that traders often want without properly doing their research or study is concerning and has led to a worrying rise in confusion surrounding using Ichimoku charts.

    In this new book on Ichimoku, Karen Péloille takes the reader back to the vital first principles of the technique, clearly covering the importance of each element of the chart construction. Few Ichimoku commentators properly tackle the interpretation of the charts and the author does this admirably in the early chapters of the book. Some new concepts are explored along the way, which is also a welcome new addition to the body of knowledge on Ichimoku charting. It is always nice to see clear examples of how to use Ichimoku and perhaps, more importantly, how not to use it.

    The second section on trading gives good practical advice on using Ichimoku for entering and exiting trades and looks in depth at currency pairs where their liquidity lends itself well to using clouds. The following section introduces other techniques to compliment Ichimoku charts in order to arrive at conclusions which concur with this unique method of technical analysis.

    The final section on discipline is useful when Ichimoku charts can leave so much to the interpretation of the viewer. It demonstrates the author’s practical experience of using the technique on a daily basis and recognises the necessary overrides to have in place when using Ichimoku charts for trading.

    I welcome seeing another work on the subject and am confident that Trading with Ichimoku by Karen Péloille will be a useful reference in any trader’s knowledge base.

    David Linton MFTA

    CEO Updata

    London, 5 June 2017

    Introduction

    This book is above all a practical handbook explaining the different elements of the Ichimoku system of chart reading, from the description of each line to their interpretation in a global process of decision-making.

    You will rapidly conclude that even though there are only five lines to look at on Ichimoku charts, the information given is very rich and above all complete, more than enough to be able to get both a detailed and global view of the activity of the market and what the price action tells us.

    Understanding only the basic reading of this system is enough to be able to trade and be successful.

    As a coach for more than five years, I have had the opportunity to meet more than 500 clients, private and professional, eager to learn how to trade with Ichimoku. It’s clear to me that the main difficulty which prevents one being successful has little to do with the technical aspect of trading. It’s all in the mind. It refers to one’s management of emotions, which is harder to master than money management! And, alas, this psychological aspect of trading represents 80% of the success of a trade.

    That’s why I have included a chapter at the end of this book (Part Four) to explain what trading is from a mental point of view, and why, for example, one can be a fantastic analyst but may never be a good trader. I also try to give some tips to define a kind of road map to train oneself against all the biases induced by the stress of putting money in the market and how to control your emotions in front of the screen.

    After reading this book, I hope you will be convinced of the abundance of information you can obtain from these simple five lines and how the Ichimoku method can drastically improve your trading whether you are a beginner or an accomplished trader with a track record below your expectation.

    I do not pretend that I have found the Holy Grail but I can assure you that Ichimoku does improve your trading, from the very short-term to long-term time frames.

    Part 1. ICHIMOKU THEORY

    Introduction

    We live in an environment that assumes that the quality of decision-making is directly related to the time and effort spent to gather all necessary information. We believe that the more information that is available to us, the better we will be able to assess the situation and find an appropriate solution. With the ongoing advancement of media, we are overwhelmed with information on a daily basis. This is especially true for the individual who now has access to the same data as professionals. However, we confuse knowledge and understanding, and only the latter can be used to make informed decisions.

    So, if you decide to manage your own financial wealth by investing directly in the financial markets and that industry is not your specialty, you will probably start buying countless books and visiting many websites to try to understand all the workings of this ‘mysterious’ world, so maligned by the mass media. But at the end of all this, will you really understand all the information painstakingly collected? I doubt it, because one does not become a financial analyst overnight.

    And when you throw yourself into the world of finance, you will undoubtedly follow news events that may impact your investments. Most of the time, the markets will have already anticipated these events and will have priced the information into securities prices. So, your reaction will come too late. In addition, will you really be able to evaluate the impact of the news and its effect on your assets? Keep in mind that the professionals will always be one step ahead of you. For the individual, this gap between knowledge and analysis of new information means that pure technical analysis (or chartism) gives better results with less need for learning in the beginning.

    Once this fact has been accepted, individuals need to undertake the task of learning technical analysis and selecting the methods they’re comfortable with from a long list of tools. Even though they give the illusion of being able to provide all the information necessary to understand the markets, too many technical indicators only represent noise and confusion. Like the saying goes, ‘too much information kills information’, and we will not be any better prepared to make decisions in the markets.

    There’s some good news, however: among this range of indicators involving more or less complex calculations, there’s one in particular that I discovered in 2009. Once all its subtleties have been explored and all its richness discovered despite its apparent simplicity, one can no longer do without it.

    This system is Ichimoku Kinko Hyo, which allows traders to understand market movements with one single glance.

    This analysis technique was conceived by Goichi Hosoda (1898–1982), a financial journalist for Capital Newspaper in Japan. Being unsatisfied with only interpreting Japanese candlesticks, he added lines to his charts that were similar to moving averages in order to better understand price movements and to detect entry and exit signals in the markets. In the 1930s, he put mathematics students to work in order to manipulate thousands of price data for different stocks in all directions by hand (computers hadn’t yet been invented at that time!).

    In 1935, he published a first draft of his technique that introduced the Tenkan-Sen under the name ‘Ichimoku Sanji’. The first word of this term means ‘one glance’.

    Despite putting his work on hold during World War II, and after twenty years of tests, he finally published all his research as Ichimoku Kinko Hyo in 1968 and described this indicator as we know it today in the seven volumes he wrote.

    The three different Japanese characters of this name give all the philosophy of this technical system of analysis:

    Ichimoku: ‘at a glance’ – clarity and rapidity

    Kinko: ‘equilibrium’ – fundamental concept

    Hyo: ‘chartism’

    This overhead view gives perspective and clarity to market research. Charts are simple and information can be immediately interpreted.

    However, this method fell into disuse after the death of its author in 1982, and was only revived in 1996 by Hidenobu Sasaki of Nikko Citigroup Securities, who published Ichimoku Kinko Studies. This book was voted best technical analysis book by the Nikkei newspaper for nine consecutive years. From this, Ichimoku began popping up onto computer screens on trading floors in Japan and later, through American banks’ Japanese subsidiaries, in the United States.

    As for me, I first discovered this trading system during a conference led by Guido Riolo, EMEA head of technical analysis at Bloomberg, in 2009. It was a revelation

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