I've tried dozens of indicators over the years but one of my favorites always been ichimoku years ago to my untrained eye I couldn't see the forest for the trees it was an overwhelming confusing bunch of lines everywhere on the chart as you learn more and more about ichimiku you begin to see how complete a system is how beautifully all the parts work together from this one indicator you can get entry signals exit signals trailing stops just as important it'll help you filter out trades keep you from losing money when the market conditions are changing by the end of the video you'll learn all the key parts of the ichimoku system look at these two x-rays and guess which one wears Dentures it's not something you even have to consciously think about intuitively you know this person has teeth this one doesn't that's how you'll be when you're reading a trading chart as you get more experience with ichimoku within a few seconds you'll know if you want to go long short or flip to the next chart here's a more challenging question I was in a pediatric dentistry class and a typical question they'd ask is how old is this person it's a simple question but only if you know how to read the signs what are all these things under the teeth those are permanent teeth and they'll eventually they rub and push out the baby teeth so far we've narrowed it down to less than 18 years old these two are permanent teeth and they come in around six to seven years old these are your first permanent molars and they come in at six years old the two permanent teeth on top come in around seven to eight years old this hasn't happened yet so the child is about six years old if you've never seen a dental x-ray before it can be overwhelming and you might not know where to start and it's the same with ichimoku the first time you see a chart that looks like this it's natural for your eyes to wander all over the place and get overwhelmed but just like the dentist after a little train your eyes will quickly check the parts of the system and know exactly what to do links for the trading software description below search for ichimoku and add it to the Chart I keep the inputs on the default settings you can change the colors to whatever you think looks good there are only four main components of the ichimuku system Kumo translates as Cloud it's either the green or the red the chiku span is the lagging span instead of purple two moving averages the tenkinson is in green key Jensen is in blue the tank consent is set at nine and the kitchen set is set at 26. now let's talk about them one by one let's take off everything except the cloud based on my colors when the cloud is red we only take short signals when the cloud is green we're bullish and only allowed to go long we have two moving averages the faster is the green the slower is the blue the last line is the purple one it Compares where price is now to where was 26 periods in the past gives a hint at support and resistance and where price may run into ichimoku is an entire system and as you play around with it more you'll realize there are ways to tweak and customize it according to your personality and trading Style some rules are essential While others you may choose to modify or ignore as you gain more experience as a break even or losing Trader I'd suggest you follow each and every rule think about a rocket about the launch into space just before blast off a hundred sensors are checked 99 systems could be perfect but if there's one thing out of place it's a no-go and the launch is aborted C minus 16 seconds the computers have armed the SRB ignition hold down post and t0 umbilical for now we only want to act when we have confirmation from all parts of the ichimiku system by waiting until everything is ready we may miss out on a few winning trades but starting out our main goal is to be safe by avoiding bad trades the way to do this is by looking for multiple factors all pointing the same direction I'll show you how it works now this is our pre-flight checklist look all the way to the right we have a green Cloud next thing we want to see we look at the two moving averages we want the green over the blue next thing we're going to look at we want the clothes over the green and then we want the clothes over the cloud last thing we want to see is the purple line over the candle everything checks out we can go long so let's see how it looks for short look to the very right now we're going to look at the two moving averages we want the blue over the green moving on to number three we want the green moving average of other clothes and then we want the cloud above the close last thing we want to see is the purple line candle is above the purple everything checks out we can look to go short what I want to do now is walk you through a couple examples that violate the rules and then I have a pop quiz for you we've got a green Cloud next thing we look at are the moving averages green is above the blue so we go to step three we need the close above the green moving average here the close is not above it's below the moving average we don't have to look at the cloud or the purple line as soon as one thing is wrong we don't have a long cloud is red so we're going to look at the two moving averages we want to see the blue over the green here the green is above the blue which is the wrong order so there's no trade oftentimes there's one part of the system that's holding everything back on the one hand you don't have to completely throw away the trade and on the other you won't have to keep rechecking the chart here on the daily for General Electric it's been in a nice uptrend everything is lined up except it's currently between the two moving averages we can set an alert to be notified when price closes above the faster green moving average we want price to cross up and remember the faster green moving average is called tankinson we want it on bar close and turn on notifications but we're going to go through a lot of charts pause the video out of each one look to see if there's anything wrong everything checks out we're good to go everything lines up we can think about going long step two and three we're fine but look at the purple line we need the purple line under the candle so there's no trade everything lines up we're good to go here we need to close above the green moving average it's in between so there's no trade same situation here no trade everything's good you can think about going long you see anything out of place here no everything's good another short everything was lined up except the purple line so there's no trade if you notice this is Bath and Body Works on the daily chart where we have no trade we just saw Bath and Body Works on the four hour which was a valid setup it's not uncommon for one time frame to say one thing and another to say something different in a future video we'll talk about how to deal with this the moving averages are reversed so there's no trade here the moving averages are on the correct order but we can't close below the green line same situation here we don't want to be in the middle we want to be above the green moving average a couple things wrong here if you saw either of them it would be no trade close below the green moving average so we have to wait everything lines up looks like it's short this one's good too this is a long it started below the cloud but it's where it closed everything lines up we can look to go long we don't want to see a close below the cloud or in the cloud when we're trying to go long faster moving average is lagging behind it hasn't crossed yet so there's no trade we don't want to see anything in the cloud this would be a short this is a long another good short everything's valid here a couple things wrong here think about finding a short and once again moving averages are in the wrong place and then the purple line we want it below the candle for short everything lines up close below the green and it's in the cloud no trade no trade on Delta here close below the green it's in the cloud and the purple's in the wrong spot dish is in a downtrend we can look to short it last chart was dish on the four hour this is dish on The Daily these both agree we can look to Short we can buy here in the uptrend stay away from this one for now you could set an alert but we need to wait nothing in the cloud just had a crossover could be heading lower we want to stay away from this could be running out of steam no trade right now we could look to buy this one could be bouncing off the cloud but we need to wait and see price goes a little higher we can look to buy but we can't right now this looks like a buy no trade right now in a bit of a range and we want to stay away from this Cloud just twisted over everything looks like it's ready for short getting a little pullback but it's still above the green so we can go long this one pulled back too far no trade prices in between the moving averages no trade right now assuming this is the close we can look to buy nothing between the moving averages same here still high enough we could look to buy looks like the cloud is about to twist for red everything would be set up but not right now this is a short another short rice and the purple are a little too high nothing in between hopefully you're starting to get the hang of it price close below the moving average same here this could be a long and not this one price looks like it wants to go higher but we need to wait and see same here pretty strong downtrend we could have shorted any of these previous candles still in a Range looking at the purple price closed below the green and the purple is below the candle everything is good for short another short no trade here that's right nothing in the cloud looks a little messy but technically you could buy we actually closed in the cloud and the purple's in the wrong spot no trade rice is a little too low right now goodbye this would be a long been losing a little steam and it's not ready to go long hasn't broken out of the range no trade strong uptrend good downtrend this looks good too we could short Macy's looks good on the four hour and the daily no trade good uptrend but look at the green no trade yet in a pullback need to wait this is pretty ugly no trade and long on Monster another long everything except the cloud is ready might have a Twist but need to wait want the blue above the green no trade almost ready for a short everything except the cloud but need to wait this would be a short take your pick no trade price has been in a Range purple's not high enough no trade on the pullback same here couple things wrong here closed inside the cloud no trade between the moving averages same here no trade looks like it's breaking down but need to wait for the Red Cloud you could set an alert need to wait for it to close above the green no trade this would be a short same here looks good getting a little extended but you could go long no trade price closed too low still in the cloud same here this could be a short looks like we just had the cloud twist we could go short breakout above the cloud we could go long this looks good no trade still in a Range no trade this is a short wait for the Red Cloud no trade right now nothing yet this one looks bad still between the moving averages prices in the cloud this looks good no trade in the cloud no trade move on [Music] nothing to see here price could be reversing but it's not ready looks like price might be going up we don't want to short this no thank you almost ready for a trade set an alert keep an eye on it probably should have already been in this short but you could do it no short on United nope still between moving averages we could short price is a little too high no short it's not ready for a long trade looks like a mess stay away technically it's a short another short close but not ready this could be short close below the green need to wait still above the green we could go long another long not quite ready same situation price between the moving averages price hasn't broken out yet no trade no trade on Exxon price is a little too low the sell signal was really about a dozen candles back but I guess it's a short Microsoft could be breaking down but need to wait American could be a short this is a long if you've made it this far congratulations we went through 150 examples not everyone's willing to put in the work like you are but we've just barely scratched the surface when it comes to ichimoku make sure to subscribe because I'm going to build on this video we'll talk about if you're stopwatch should be at tenkinson kiegeson or the cloud for example a thick Kuma means something different than a thinner one in flat clouds hint at one thing compared to a steep Kumo we'll keep peeling back the layers of the onion as you get more and more advanced if you're still not sure about any of the examples leave a time stamp or comment down below I've made a companion video to this one that details how the individual lines are calculated and also go more in depth on a few examples although a trade may be technically a trade oftentimes I won't take it for reasons I'll talk about in this video or if you want to start developing the mindset of a winning Trader click here don't forget to subscribe I'll talk to you soon