Ichimoku multi timeframe

[MickStanciu]

Hi guys,
I have a question for Ichimoku users:

Last week (day of 3 Aug 2018) NFLX:

Weekly chart Ichimoku: price shows "support" on Kijun-Sen in Weekly chart, the cloud is bullish.

Daily chart: the price has 3 bars under the cloud and the future is bearish.

I do place trades from Daily charts, but I like to check the Weekly for general direction. This one is confusing for me since W shows bullish and D shows bearish. My trades usually last 40-60 days. How can I interpret this kind of signals where Weekly shows something and Daily something else?

 

[peter2]

Hey Mick, that's a great question that every trader trading indicators will ask themselves. You'll see this dilemma across time frames using every indicator not just Ichimoku.

I'll ask you what trend are you trying to trade? The weekly one or the daily one?
I trade the weekly trend but look for low risk entries from the daily chart. I suspect you're doing the same thing as your trades last 40 - 60 days.

NFLX: I'd pass, as there's no daily setup in the same direction as the weekly.
There will be plenty of daily setups in the same direction as the weekly trend in other charts.

 

[MickStanciu]

Hi Peter,
I am not trading this system at all, I just prospecting it for future. I have an active strategy (based on momentum) which I automated and works well with SP1500 (US) (Amibroker language). I am trying to see other strategies (that makes sense) in order to diversify.

I chose Ichimoku because I like how it is build (easy to understand the math behind it).
Probably, I will have to see which timeframe I want to trade (D or W). I will need to manually backtest then automate if possible.

Reason I am aiming for 40-60 days is because I want to try Option Spreads (45 days -ish) with this system.

 

[MickStanciu]

I started to back-test (manually) using TradingView website.

1. Picked a stock from my watchlist (random one with a decent volatility, not a junk stock).
2. Used Weekly to establish direction of the trend plus signal when Kumo is broke
3. Then used Daily to entry (multiple entries) on the direction established by Weekly trend

Tested 2016-2018, 10 trades and had 1 loss and 9 wins.
I am recording in a spreadsheet the following:

1. weekly stats (trend, angle)
2. daily entries: all of Ichimoku components in relation to the price, stop loss level and target level (45 days)
3. RSI value and RSI divergence/convergence trend line.

It is a very slow process, takes time (manual task)

 

[CanOz]

I think it's interesting to test discretionary systems. If they're profitable, at least marginally then one can look for ways to filter in a discretionary way...

 

[MickStanciu]

agreed CanOz. I am using semi-automated systems. My current trading system is using automation to detect the signals EOD, and I put pending orders manually. Probably because lazy to code an API interface to my broker ....