trading with macd ichimoku
january 8, 2011
by
m brooky
the
macd is one of the stable indicators around which many strategies have been developed.
In an attempt to apply some market sentiment indications to it i decided to apply the ichimoku concepts to it’s values.
Instead of re writing how to use ichimoku i suggest you have a look at an extremely good source of information at
ichimoku wiki and you can then read this indicator with a full understanding.
On the attached chart i have noted a basic view on a movement just to give you an idea of how one may read the information presented.
The indicator itself uses the same auto shading code that i use to make shades float and you will need to allow dll’s for that to occur and wait for a new tick or right click and edit without changing anything and close again on a stationary chart for clouds to float.
Because we are dealing with positive and negative values in
macd, i am constrained with the amount of buffers that i can use to allow shading of every possibility. This means that while you will always see the senkoua and b lines, (boundaries of the kumo clouds), occasionally a small amount of shading is clear when zero line crossovers occur. Nothing to worry about but worth mentioning.
example of macd ichimoku
for me this is quite a new way of confirming macd and i am very happy with the overall information presented. Ichimoku is a bit of a learning curve but a very worthwhile pursuit and i believe this indicator would be similar. A bit daunting at first but worth the exercise.
Initially i just ran the m5 and m15 strategy tester with a do nothing ea and watched and noted how the indi behaved. After a while you will be surprised how well it tells the story.
Example of MACD Ichimoku
