Email of the day (2)
Comment of the Day

July 20 2010

Commentary by Eoin Treacy

Email of the day (2)

on Ichimoku charts
"Welcome back! It's always great to have input from both you and David. What are your thoughts on the latest charting fashion - Ichimoku charts? And are there any plans to add the facility to display these in the chart library?

"They have the advantage of being much simpler than Bollinger bands, so complexity isn't an issue. In the unlikely event that you haven't come across these before there is a good introduction at: http://www.kumotrader.com/ichimoku_wiki/index.php?title=Main_Page.

"I've attached home-grown charts for gold, silver, Dow and the S&P showing the Ichimoku cloud (Kumo) and in one or two the Kijun Sen line (a sort of 26 day moving average which can attract the price to it). As you can see they show the Dow and S&P as bearish having just bounced off the bottom of the cloud. Gold is trendless inside the cloud looking to bounce off the bottom of the cloud at 1179 (successfully so far today) and silver is bearish. Be warned, though, that I don't have a Bloomberg feed and there are errors and inaccuracies in the data I used to generate these charts."

Eoin Treacy's view Thank you and it's good to be back. Ichimoku charts have been around for quite some time and as with many other charting tools, they come in and out of fashion. Personally I find these kinds of charts too busy to employ our factual chart reading techniques but realize that subscribers may want to employ their own methodology. I have added Ichimoku to our rather lengthy development list but must warn you that other enhancements will take priority in the short to medium term.

Back to top