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  1. #1
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    Mar 2011
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    Default Ichimoku vs. Moving average !

    Hi every on this is my third comparison hope using them for building good strategies for you . this comparison between ichimoku kinko hyo and moving average of signals for entering market .
    i will write a quick reveiw of each including my opinon (note : my opinion is based on experience after using the indicator for a while)

    first the ichimoku kinko hyo :-

    Essentially made up of four major components, the application offers the trader key insight into FX market price action. First, we'll take a look at both the Tenkan and Kijun Sens. Used as a moving average crossover, both lines are simple translations of the 20- and 50-day moving averages, although with slightly different time frames.

    1. The Tenkan Sen - Calculated as the sum of the highest high and the lowest low divided by two. The Tenkan is calculated over the previous seven to eight time periods.

    2. The Kijun Sen - Calculated as the sum of the highest high and the lowest low divided by two. Although the calculation is similar, the Kijun takes the past 22 time periods into account.

    What the trader will want to do here is use the crossover to initiate the position - this is similar to a moving average crossover.

    in my opinion : it get me low amount of signals but high profitability on each position .

    second the moving average :-

    here we talking about multiple moving average together (200,100,50)

    Moving averages are used to emphasize the direction of a trend and to smooth out price and volume fluctuations, or "noise", that can confuse interpretation. Typically, upward momentum is confirmed when a short-term average (e.g.15-day) crosses above a longer-term average (e.g. 50-day). Downward momentum is confirmed when a short-term average crosses below a long-term average.

    in my opinion : it get me a higher number of signals with low points but the worst thing it`s too slow specially simple moving average.

    thanks for every one hope i got you some benefit .



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  3. #2
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    Default

    problem is that pair don't trade in linear pattern. This is only good if theirs a linear pattern. Once theirs a big drop or big raise. The signal will be useless. And the pattern is so erratic that the Kijun sen. Willl not going to work. Or has 20% possibility only. its like computing the odds. head and tail. Theirs a fifty-fifty chance that you can get the head. but you can flip the coin five times and you can get the tail each time you flip. even though the chance of getting the head is 50%.


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