The Ichimoku trading system is built around three main numbers: 9, 26, and 52. These might seem like random numbers at first, but they have a special significance.
- Number 9- Roughly represents a week and a half of trading days.
- Number 26-: In the past, a month in Japan had about 26 trading days. Some also believe this number is linked to the lunar cycle.
- Number 52: This is about two months of trading.
The creator of the Ichimoku system, Goichi, chose these numbers for a reason. But the truth is, why these numbers were chosen isn't as important as how they work. These numbers have proven to be very effective in the Ichimoku system.
Traders sometimes experiment with different numbers. That's okay, but remember, what works on one type of chart (like a 5-minute chart) might not work on another (like a daily chart). It's usually best to stick with the original numbers since they've been effective over time and across different types of assets.
Why Ichimoku Stands Out
Ichimoku charts are great because they give you a quick view of market sentiment. You don't need any other indicators or tools, which can be a big relief since choosing and adjusting many different indicators can be overwhelming.
But here's something crucial to remember: No trading system, including Ichimoku, is perfect. Every system has its flaws. The key to successful trading isn't about winning every trade. That's impossible. Successful traders often lose more trades than they win. The difference is, their winning trades earn much more than what they lose in their losing trades. New traders often do the opposite: they take small profits quickly but let losses grow.
Changing this mindset is important. The Ichimoku system, especially with its dynamic support and resistance, can help you follow strict trading rules. Remember, trading is about making more overall profit, not winning every single trade.
- Number 9- Roughly represents a week and a half of trading days.
- Number 26-: In the past, a month in Japan had about 26 trading days. Some also believe this number is linked to the lunar cycle.
- Number 52: This is about two months of trading.
The creator of the Ichimoku system, Goichi, chose these numbers for a reason. But the truth is, why these numbers were chosen isn't as important as how they work. These numbers have proven to be very effective in the Ichimoku system.
Traders sometimes experiment with different numbers. That's okay, but remember, what works on one type of chart (like a 5-minute chart) might not work on another (like a daily chart). It's usually best to stick with the original numbers since they've been effective over time and across different types of assets.
Why Ichimoku Stands Out
Ichimoku charts are great because they give you a quick view of market sentiment. You don't need any other indicators or tools, which can be a big relief since choosing and adjusting many different indicators can be overwhelming.
But here's something crucial to remember: No trading system, including Ichimoku, is perfect. Every system has its flaws. The key to successful trading isn't about winning every trade. That's impossible. Successful traders often lose more trades than they win. The difference is, their winning trades earn much more than what they lose in their losing trades. New traders often do the opposite: they take small profits quickly but let losses grow.
Changing this mindset is important. The Ichimoku system, especially with its dynamic support and resistance, can help you follow strict trading rules. Remember, trading is about making more overall profit, not winning every single trade.