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The Mud Pit RSS Feed

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Created
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Moderator TheHungryHippo
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Welcome to the Mud-Pit.

The place for The Hungry Hippo's stock picks.
I will only post penny stocks that I own, or stocks that I am watching.

Our goal here is to "bottom feed" accumulate a few pennystocks at the right time.
Pennystocks with undervalued stock principles, low float counts, and a good story.

The Hippo is first and foremost a technical trader.
He strongly believes in the Japanese candlestick methods.
Knowing when to strike is everything with pennystocks.

 

 



 
 


ICHIMOKU TRADING

The key elements of the ichimoku chart


Tenkan-sen

Tenkan-sen (???) calculation: (highest high + lowest low)/2 for the last 9 periods.

It is primarily used as a signal line and a minor support/resistance line.Tenkan Sen (red line): This is also known as the turning line and is derived by averaging the highest high and the lowest low for the past nine periods. The Tenkan Sen is an indicator of the market trend. If the red line is moving up or down, it indicates that the market is trending. If it moves horizontally, it signals that the market is ranging.

Kijun-sen

Kijun-sen (???) calculation: (highest high + lowest low)/2 for the past 26 periods.

This is a confirmation line, a support/resistance line, and can be used as a trailing stop line. the Kijun Sen acts as an indicator of future price movement. If the price is higher than the blue line, it could continue to climb higher. If the price is below the blue line, it could keep dropping.

Senkou span A

Senkou (??) span A calculation: (Tenkan-sen + kijun-sen)/2 plotted 26 periods ahead.

Also called leading span 1, this line forms one edge of the kumo, or cloud

If the price is above the Senkou span, the top line serves as the first support level while the bottom line serves as the second support level.

If the price is below the Senkou span, the bottom line forms the first resistance level while the top line is the second resistance level.

Senkou span B

Senkou span B calculation: (highest high + lowest low)/2 calculated over the past 52 time periods and plotted 26 periods ahead.

Also called leading span 2, this line forms the other edge of the kumo.

Kumo

Kumo (?, cloud) is the space between senkou span A and B. The cloud edges identify current and potential future support and resistance points.

The Kumo cloud changes in shape and height based on price changes. This height represents volatility as larger price movements form thicker clouds, which creates a stronger support and resistance. As thinner clouds offer only weak support and resistance, prices can and tend to break through such thin clouds.

Generally, markets are bullish when Senkou Span A is above Senkou Span B and vice versa when markets are bearish. Traders often look for Kumo Twists in future clouds, where Senkou Span A and B exchange positions, a signal of potential trend reversals.

In addition to thickness, the strength of the cloud can also be ascertained by its angle; upwards for bullish and downwards for bearish. Any clouds behind price are also known as Kumo Shadows.

Chikou span

Chikou (??) span calculation: today's closing price projected back 26 days on the chart.

Also called the lagging span it is used as a support/resistance aid.

If the Chikou Span or the green line crosses the price in the bottom-up direction, that's a buy signal. If the green line crosses the price from the top-down, that's a sell signal.


TRADE AT YOUR OWN RISK

"Plan the trade, Trade the plan"

The Hungry Hippo is not a stock advisor. He is a speculative stock investor/trader.
Good luck.
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