Advanced (common) · Lesson 11
Ichimoku Intro: Five Lines Answer the Same Question
After this lesson you will
- · You can explain in words what the conversion line, base line, leading spans and lagging span each calculate.
- · You can judge position by whether price sits above, inside or below the cloud, and you can leave direction undecided while price is inside the cloud.
- · You can explain that a cross of the conversion line and base line is a record of a change in state, and why crosses become frequent in a sideways market.
- · You can tell that the cloud drawn ahead of price is the current calculation moved forward, not a forecast.
- · You can separate the readings that overlap with definitions from other lessons from the readings that split by school.
- · You can derive an invalidation price from an above-or-below-the-cloud judgment and carry it into a size calculation.
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What this lesson covers
- 1. Many lines, but only one question
- 2. All five lines are midpoints of the high and the low
- 3. The cloud splits where price sits into three
- 4. The conversion line and base line are a short average against a long one
- 5. Where several schools overlap is the core
- 6. The cloud does not predict the future
- 7. Use it knowing it is a tool that follows late
- 8. Where views split
- 9. Five common misreadings
- 10. Where this lesson comes back to risk and mindset
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