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Hubert Senters here.
Let’s take a look at the gold market. So the gold market has been in a very good valid definable, well definable downtrend as you can see here. We’ve crossed one, two, three bars below the cloud four or five there so three to five bars below. And now it’s been continuing to go lower.
So on Ichimoku what you’re looking for here is you’re looking for a trending market then come back up and kiss either the yellow or the purple line and then continue on its merry way to the downside. So here you’ve had this happen one, two, three days ago.
Now, let’s just say okay, well that’s great information. How am I supposed to use it? Well, you can’t use that information to trade off of right now because you’ve missed it three days ago. This was a sell signal and now it looks like it’s going to ramp a bit lower but what you can do is you can drill down and use multiple timeframe analysis. This is a daily chart.
So what I’m going to do to my other favorite timeframes is a 60 minute and also a 10 minute so what I can do here is okay, I know I’m in a valid daily down trend. The next time that I see an hourly cross below the cloud with one bar I could sell that and you’re going okay well, now I’m already one, two, three, four, five, six, seven hours behind. That’s okay. An hourly chart as a sell signal is usually good for a three to five days of down move.
Now, if you miss that you can drill down a little bit further into a 10 minute timeframe. And I call this a — I don’t know I call it the snake trade just because this price action is going to snake above the cloud and then snake back below the cloud.
What you’re looking for now that you’re below the cloud here again because you’ve missed this one is let it go back up above the cloud and then let it rotate back below the cloud and just watch that. So put on a 10 minute timeframe. You can put it on smaller tends to be a little bit more choppy just like anything the lower of the timeframe or the tick frame.
The more false positives you’re going to get and you’re just going get chopped up. But pay attention to the smaller timeframes. Once you have the larger timeframes figured out or you think you’ve got them figured out and then you can pinpoint your entries to time entry better but be careful.
Don’t go too low where you just get chopped to death and you grind your account to zero. So start to incorporate multi timeframe analysis into the analysis of what you’re trading and I’m sure it’ll help you time your entries better.
Good luck. Hope it helps. And I’ll see you on the next video.
Hubert.
