Ichimoku buy signals for ADA, HSR, BTC, WAVES
One of the most powerful trading systems in the world is also one of the oldest: Ichimoku Kinko Hyo. Roughly translated to mean, ‘the market at a glance.’ Oddly enough, the Ichimoku system is often listed as an indicator in most trading software, when it is, in fact, a trading system. And it’s continued use and proof of profitability is a testament to the strength of this system.
One of the most important aspects of the Ichimoku system is not in finding great trades but telling us when not to take a trade. We need to review the rules for our entries with the system. All four of these rules must be met before taking a trade.
Ichimoku Buy Rules
- Price is above the cloud.
- Cloud ahead is green (bullish).
- Conversion Line greater than the Base Line.
- Lagging Span above the cloud.
Ichimoku Sell Rules
- Price is below the cloud.
- Cloud ahead is red (bearish).
- Conversion Line below the Base Line.
- Lagging Span below the cloud.
On the daily chart, there are three conditions being met for taking a long position: price is above the cloud, the cloud ahead is green and the conversion line is above the baseline. Currently, the lagging span is inside the cloud. However, projecting a time and price when the lagging span would cross the cloud would be fairly simple. We do need to be wary of the conversion line crossing the baseline, but if the price can continue to drive higher from this most recent dip down, that should not be an issue.
One of the few charts that exhibit profound instances of lagging the market, HSR may be in a condition to actually lead the market as far as it’s structure is concerned. It is also one of the few daily crypto charts that have a lagging span trading above the cloud. A long trade would not want to be entered until we moved above the Base Line. All other conditions for a long trade are met.
The current price level of Bitcoin is a prime example of the Ichimoku system telling us when not to trade. Price is inside the cloud and so we do not take a trade. But if we look at the chart, we see that the cloud ahead is green and the conversion line is greater than the base line. Price is not very far away from being to break back above the cloud and the lagging span does not have far to travel either. A break above the cloud with price and the lagging span will no doubt generate considerable momentum to the upside.
One of the few crypto-charts that have appropriate volume, participation and all long conditions being met is WAVES. Price is above the cloud, the lagging span is above the cloud, the cloud ahead is green and the conversion line is greater than the baseline. Even better, the last 4 daily candlesticks show the baseline is holding a firm support level. A long entry at the current value area is a very appropriate entry.
Weekend Bitcoin Forecast
Gann’s market geometry and his Law of Vibration show us an interesting condition on Bitcoins chart. The red vertical line is a pivot in time. Price has a strong probability of reacting the same way to the previous pivot in time in this cycle, the first pivot being on February 4th, which resulted in a strong bounce from a down move. We have a very similar setup on the current chart: down move prior to the pivot. The move itself is also followed.
This is interesting because the swing from the February 4th pivot was a 100% gain from the swing low to swing high (5873 to 11775). A 100% move from this current zone would put us well above the 15000 value area. That level is within the parameters and behavior of Gann’s work, but it seems to be a bit excessive of a drive, a more conservative approach would be the 10800 – 11300 value area.
Weekend low: 7580
Weekend High: 11300