Trade Nifty future and stocks using Ichimoku indicator – Part 1

Ichimoku (Full name Ichimoku kinko hyo) is an all rounder indicator, it is mostly seen on screen of Japanese trader. But now this trading system (indicator) is very popular in every part of world. OK, now let me explain the elements of this indicator:

1. Tenkan-sen (Fast moving average, by default 9 period)
2. Kijun-sen (Slow moving average, default 29 period)
3. Kumo (Known as cloud in English)
4. Chikou span (This is lagging line)
5. Senkou span A (Forms one boundary of cloud)
6. Senkou span B (Forms another boundary of cloud)

Like any other crossover trading system, ichimoku is also one, which gives buy or sell signals based on crossover. Here this crossover is seen on Tenkan-sen and Kijun-sen i.e. between fast and slow moving average. Today I will cover the crossover part and in my next few articles I will teach all of these elements and how they are used together.

Crossover trading rule:

1. Nifty future is bullish if Tenkan-sen crosses above Kijun-sen.
2. Nifty future is bearish if Tenkan-sen crosses below Kijun-sen.

In my next few article I will cover this beautiful indicator (Ichimoku) with complete explanation and example. If you are interested in learning technical analysis then call us at +91-9970777789