The Kinjun-sen Line - KeeneOnTheMarket.com

Report
My Secret Weapon:
The Best Technical Indicator
in the World
Presented by
Andrew Keene
Past performance is not indicative of future results.
Andrew Keene
- From 2006-2010 I Turned $50,000 into millions
- Have Turned 1000’s of Students to Full Time
Traders
- Active Trader in Futures, FX,
Stocks & Commodities
- Regular Contributor to CNBC
& Bloomberg, Fox Business,
CBOE and more
RISK DISCLAIMER
Day trading, short term trading, options trading, and
futures trading are extremely risky undertakings. They
generally are not appropriate for someone with limited
capital, little or no trading experience, and/ or a low
tolerance for risk. Never execute a trade unless you can
afford to and are prepared to lose your entire investment.
All trading operations involve serious risks, and you can
lose your entire investment.
How I found the Cloud
In 2006 I blew out my account while trading on the floor in Chicago. After, I took a
trip to Asia to clear my head and regroup before going back to the floor. While
travelling I met traders living in Asia and we began to talk about how we trade and
our favorite strategies. These people introduced me to what was their, and is now
my, favorite technical indicator. The Ichimoku Cloud.
Upon returning I spent the next few years deepening my understanding of the Cloud
and how to best apply it to my trading plan as an options trader. I have read every
piece of literature on the cloud and have learned from practical experience which
setups are the best and how to most efficiently apply the cloud to any trading plan.
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WE have New and Exciting New Trading Ideas
and Set-ups for the Ichimoku Cloud
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The 6 Components of the Ichimoku Cloud
1. Tenkan-Sen Line
2. Kinjun-Sen Line
3. Senkou Span A Line
4. Senkou Span B Line
5. Kumo
6. Chinkou Span Line
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Components of the Cloud
The Tenkan-sen Line: Short Term Trend: Similar to 10 Period MA
= (highest high + lowest low)/2 over the last 9 periods
tenken-sen line
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Components of the Cloud
The Kinjun-sen Line: Longer Term Trend: Similar to 30 DMA
= (highest high + lowest low)/2 over the past 26 periods
Kinjun-sen line
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Components of the Cloud
Senkou Span A: Future Short Term Trend
= (tenkan-sen + kinjun-sen)/2 plotted 26 bars in the future
Senkou Span A
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Components of the Cloud
Senkou Span B: Future Long Term Trend: Fib 50% Retracement
= (highest high + lowest low)/2 over the past 52 bars plotted 26 bars in the future
Senkou Span B
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Components of the Cloud
Kumo “the cloud”: How Hard or Easy it is to Break the Trend
Kumo
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Components of the Cloud
Chinkou Span Line: How does the Today’s Price compare to last Month
= current bar’s closing price plotted 26 bars back
Chinkou Span Line
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STOP LOSING MONEY TRADING NOW!
- If I can make money trading like this, so can YOU!
- I’m just like everyone here, no special indicator,
algo, no Harvard Business school
- It is simple, easy from Beginner
to expert
Applications for the Cloud
TIME FRAME: The cloud will work best on different time scales depending on the
security. Faster time scales will produce more traps in some assets while providing
good signals in others.
How fast is too fast?
Stocks- Best Signals Work on the Daily Chart.
Currencies and Currency Futures- Best Signals come on the 4 Hour Bar.
Crude Oil, Gold, and Silver Futures- Best Signals Trade on the 5 Minute Bar.
Dow, S&P, and Nasdaq Futures- Best Signals Trade on the 12 Minute Bar.
Day Trading AAPL, FB, TSLA, and TWTR: Best Signals come on the 5 Minute Bar.
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Trading With the Cloud
There are many setups and strategies that a trader can use on the cloud. We want to
talk first about the hands down best setup the cloud can produce.
THE BEST SIGNAL IN THE WORLD:
1.
2.
3.
4.
Price will be breaks the cloud to upside or downside.
The lagging indicator (chinkou span) breaks cloud in same direction.
The price trading above/below 9 and 26 period moving averages.
The future cloud is sloping direction of trend.
The same conditions will be present in the best short setups as well but the price,
lagging indicator, and moving averages will be breaking the cloud to the downside.
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Looking at Past to Predict Future
Although the cloud is forward looking the cloud is not a magic 8 ball. Past doesn’t
predict the future.
What has worked in the past, will work again in the future..
Four Other Set-ups with STOPS:
1.
2.
3.
4.
Break of the Cloud: STOP: Other Side of the Cloud
Buy/Sell the 9 Period Moving Average with Stop at 26 Period MA
Buy/Sell the 26 Period Moving Average with Stop in the Cloud
Buy the Re-Breakout of the Cloud as Trend will Resume
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Calculating Targets:
I always Set-up 4 Targets:
Four Targets:
•
•
•
•
Target #1: 50% of the Stop
Target #2: 100% of the Stop
Target #3: 150% of the Stop
Target #4: 200% of the Stop
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MCD Daily chart
SIDEWAYS: NO GOOD SIGNALS
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Get Short:
1. Short Stock
2. Buy Puts
3. Sell Call Spreads
Stock breaks the
cloud to the
downside here
signaling a short.
We always have FB,
TWTR and TSLA on the
5 min bar on the open.
They are the stocks that
produce the most
consistent set ups
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A trader would short the
downside break of the cloud and
would put a stop above the high
of the day. Again, this trade runs
all day.
Stock breaks the
cloud to the
upside initially
then puts two
large wicks on top
of the candles as
the broader
market begins
selling off as well.
There will be
opportunities to re
enter trades like we see
here. A trader needs to
keep their eyes on the
charts.
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Trading With the Cloud
Using multiple time frames for confirmation:
Traders can filter out more traps by looking at multiple time frames. If a shorter period
chart is setting up for a trade a trader can check a longer period to see if the set up is
justified.
Let’s re-examine the FB short from earlier. This time we will look at another time
frame for confirmation of the setup on the 5 min chart.
We will look at the 15 min chart as well.
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5 min Chart Setup
Stock breaks the
cloud to the
downside here
signaling a short.
As we can see here if a traders
shorted the downsie break of the
cloud and put a stop in above the
days high they would have stayed
short ALL DAY.
We always have FB,
TWTR and TSLA on the
5 min bar on the open.
They are the stocks that
produce the most
consistent set ups
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We see the setup forming on the 5 min chart so we
then look at the 15. Here we see that the stock is
trading below the cloud along with both the 9 and 26
period moving averages. The future cloud was also
downward sloping. That’s all the confirmation we
needed to pull the trigger.
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Trading With the Cloud
Using multiple time frames for confirmation:
This practice can help less aggressive traders find the best quality setups. This can be
done with any time frame.
On the 5min- Look for confirmation on the 15min
On the 15min- Look for confirmation on the 1hr
On the 1hr- Look for confirmation on the 4hr
On the 4hr- Look for confirmation on the Daily
On the Daily- Look for confirmation on the Weekly
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Summary
-The could is our favorite technical indicator and it can be applied to any product on
any time frame making it one of the most universal indicators around.
- Remember to look for the best setups and the 4 criteria that make it the best.
-Past does not predict future. Be aware of whether or not the product you are trading
lends itself to trading the cloud. Some things simply don’t trend well.
-Remember to look at the candles. If you see something contrary to the cloud then it
is ok to pass on the trade.
-Don’t try and fight the trend. It is too difficult to make money consistently trading this
way. Trend is your friend.
-Use multiple time frames to confirm set ups on faster charts. This will help filter out
traps and guide you into the highest probability set ups.
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SPECIAL TOPIC COURSE:
My Secret Weapon: The World’s
Best Technical Indicator
 4 Different Set-ups for a Day Trader, Swing Trader,
Aggressive Pull Back Trader, and Mild pullback trader
 Over 10 Hours of Ichimoku Workshop from 3 different days
 Watch me trade the Ichimoku Cloud live with real money
 Take Your Trading to the Next Level NOW and Start to
Profit
Price Available for First 200 Students Only
$97
www.keeneonthemarket.com/thecloud
Or Call Now: 312-261-5581

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