2 17 - Ninjacators

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Ichimoku Made Easy For FuturesHow a simple change allows dozens more intradaytrend winners to come to you when day trading withIchimoku CloudMarch 18th, 1925.It was almost as though it was thumbing itsnose at God himself as it made its path ofendless destruction.Three states. 695 fatalities. Billions of dollarsin damage.Now it’s known simply as the ‘Tri-StateTornado’. The deadliest tornado in UnitedStates history. Meteorologists would spenddecades trying to sort out exactly whatweather conditions could have fueled such adestructive twister. It wouldn’t be until 2013before it was fully figured out.By then it was too late.Figure 1 When the price gets ready to go on a roaringWhen the market goes on a deadly tear,trend, be ready to profit with the simple, yet powerfulyou can be sure of one thing just like the Ichimoku entry confirmation system!‘Tri-State Tornado’ -- some poor trader isgetting ruined. While it might not be a life-or-death predicament -- being on thewrong end of a trending market is one of the most costly errors an amateur traderat any level can make.Here’s the flip side: While millions of amateur trading accounts are leveled in thepath of a trending market, there are traders in the know that are profiting all alongPage 2 of 17

the way. The sickening truth of the matter? They aren’t using fancy indicators orcomplex algorithms to ride these trends.Nope. They’re using a timeless strategy that’s available on just about everytrading platform. Renko bars and Ichimoku clouds.This approach to trading requires debunking some of the biggest misconceptionsin the market today. You simply have to be willing to see the market differently.By ‘differently’ we’re not talking about complexity. We’re talking about simplicity.Clarity.Free from the distractions of clutter.This simplicity and clarity starts with getting rid of one of the biggest distractionsthat 99% of traders are fixated on price.Chapter One: Why Time-Based Candles Cloud Your AbilityTo See Price Action TrendsWhen a tornado is tearing through a town, nobody seems to talk about thetemperature -- or the humidity -- or how hot it was at the same time last year.Somehow it just doesn’t seem to matter when cows and cars alike are flyingthrough the air.The same is true when the market decides that it’s going to go on a massiveprice rip or dip. All the nuances, the grace notes of each tick, the dainty littlepatterns that your expensive indicators are supposed to be picking up? They getcrushed in an instant. No questions asked. Just crushed.When price is crushing your position and carnage is flying through the air in areal-life market tornado -- one single harsh reality comes to light.Watching price and time together is the biggest waste of time on earth.And really, if you have a sound trading strategy who cares where price is atduring any given time? Or during any given candle?Page 3 of 17

Does it really tell youanything? Not really? Does itmatter if it breaks a newhigh? If it busts through anew low? Maybe for your401K or that indexed fundthat your financial advisor putyou in.Figure 2 Tradeable trends? Or just account-crushing chop? Time-basedcandles can make determining market direction very difficult!But not for your trading. Let’s cut to the truth. Watching price and time is not onlya massive waste of energy -- it’s a huge hindrance to finding good trades.Why? Because it creates a ton of useless noise.Despite this, millions of amateur traders around the world do nothing but watchcharts that are based on time and price. They load up their charts with pricebased indicators that are often late -- or just simply wrong -- all the time.What are they, or even perhaps you, missing?Simple: It’s not price over time that you need to be watching it’s realprice movement. And if you’re looking at a time-based candlestick -- you’reoverlooking one of the massive drivers that fuels any market on earth -- theinstitutional buy and sell activity that drives any major price move.[Readers Note: If you’ve unsuccessfully tried intraday trading with Ichimoku inthe past, this eBook is for you! Time-based candlesticks are often the firstmistake. The noise created by time-based candlesticks results in false entriesthat can be crushing.]But that’s not it! There are a number of misconceptions, or misguidedapproaches, to trading futures with Ichimoku that many traders fall for. (Checkout the ‘3 Top Misconceptions Box Below’)Fortunately, you can change this with one incredibly simple change to your chart-- and an even easier strategy that will bring joy and profitability to your trading.Page 4 of 17

“One change to my chart and one strategy?” We get that question all the time,and yes, you are reading that right. Even better, it will help you filter out themarket noise that clouds the clarity of great trades.First, let’s deal with your chart. Let’s get rid of all those indicators. ‘Clear thatpalate!’ as a fine wine sommelier would say.Figure 3 It’s time to make your trading life easier, and less complicated. Ditch those time-based candlesticks for easyto-read Renko bricks. Trends will start jumping out at you!And those time-based candlesticks? We’re going to swap them for Renko bricks.That’s right -- Renko bricks. Instead of looking at a market through the lens oftime and price which doesn’t tell you much. You need to start looking at the market from the perspective of direction andmovement -- which Renko bars help you do.To break it down if you’re not familiar: Renko bricks (or boxes) can be set tovarious price or movement blocks. So for instance if you set your Renko bars toPage 5 of 17

50 ticks on a futures market, or however many pips for a forex market, a bar willonly form when price has moved in that direction -- by that amount.Why is this helpful?Because being able to see the price movement as it reaches these thresholdsmakes it way easier to spot trends. The larger the Renko brick -- the larger theprice movement -- the greater your confirmation is.While the rest of the world is watching time-based candles, wondering where onearth the market is going -- you can simply watch the progression of Renkobricks and let the simple picture that the chart paints be your guide.If you’re not sure, just take a look at the above ES example. This is for the sameexact trading period. The traditional time-based candlesticks look like the EKG ofa patient that’s going into cardiac arrest.Renko? Now that looks like a trend you can trade.All we have to do is add two simple tools and an easy-to-follow process -- and wehave a time-proven formula for cranking out profits.Chapter Two: The Simple, Yet Powerful Beauty Of IchimokuHow many times have you stood in front of your television watching the weatherman wondering out loud ‘I wonder if he’s going to get it right this time?’ Orworse yet, you’re headed for a vacation or a business trip and you’re trying topack for the weather -- but have no idea if it’s going to rain or shine.And how many times has the weather man just been flat out wrong?Take that feeling and multiply it by 1000%. Add to it a sickening feeling of dreadthat the market ‘forecast’ or ‘pattern’ that you’re watching and trading is about toPage 6 of 17

cost you money. If you’ve beentrading for any amount of time -you likely know that horrible,sinking feeling.This is exactly the hopelesssense of failure that drives manytraders straight out of the marketwith crushing losses and their tailtucked between their legs.It doesn’t have to be that way.Look, we already know that if westop watching time-based chartsand swap them out for priceaction Renko bars -- we candramatically change ourperspective.Now the table is set for thesimple, yet powerfully beautifuladdition of the Ichimoku cloud.Just to say -- it is fun. To trade it?You’ll be bowing your head withdeep respect in no time once yousee how easy it is.First, the basics on Ichimoku.This is a trend identification andtrading system. Plain and simple.It helps you identify -- and mostimportantly, confirm -- price action trends that you can enter and profit from. Theelements of the cloud are very simple to understand and the rules for entry or noentry are very easy to follow.Page 7 of 17

The cloud itself is fueled by moving averages which create bands that will giveyou reliable support and resistance levels.The cloud was first developed during the late 1930s by a journalist of all people.That’s right, a journalist -- named Goichi Hosoda -- came up with this.Rest assured however, in case you’re having doubts -- it underwent 30 years ofrefinements before the technical indicator was released in the ‘60s for use byother traders.Unlike other trading signals or systems, Ichimoku is different in that it not onlyprovides entry confirmation -- but it also provides the strength of the entryconditions for your evaluation. In addition to confirming a trend -- it will also helpyou understand the momentum of that trend.All of this can be analyzed and confirmed in about two seconds, simply bylooking at your chart.You can forget all those indicators that you’ve added to your chart.With Ichimoku you’ll roll into your trade using two tools:-The Cloud: Consisting of the top band, known as Span A. and the lowerband, known as Span B -- the cloud will expand and contract based onprice action and the strength of any trend.- The wider the cloud -- the stronger your support and resistancelevels are going to be.-Lagging Span: This is the primary cross-reference point with the cloud.Think of it as your confirmation tool to verify the conditions that you see inthe cloud. The Lagging Span will help you visualize the relationshipbetween current and prior trends so that you can spot potential reversals.- If price is above the Span - you have bullish conditions- If price is below the Span - you have bearish conditionsPage 8 of 17

Figure 4 Two simple tools and you’ll be able to more effectively spot trend trades for explosive profits in a matter ofseconds!Check out the above ES example with all of the Ichimoku elements added. Noclutter. Just two indicators with Renko bricks.The beauty of the system? The two work in concert with each other to providecrystal-clear trade entry confirmation and exit warnings.The rules for entry and exit? As easy as watching the cloud Chapter Three: Cloud Conditions That Lead To SuccessfulIchimoku Trend TradesIf you’ve given up on weather forecasts altogether and prefer to simply work withthe reality that you’re faced with outside -- you’re a perfect candidate to tradeIchimoku. Why? Because this simple system is based on trading exactly what themarket is giving you.Not the market that the talking heads on TV are predicting. Not the one that yourprice action indicator is waiting on.Page 9 of 17

Nope. None of those. We’re talking about trading the very market that’s unfoldingright before your eyes. It makes life easier. And it also makes consistent profitsmore realistic.Simply put, your entry conditions can be broken down into two simple rules:Buy: If price breaks above the cloud when it’s WIDE AND GREEN and theLagging Span is ALSO ABOVE the cloud.Sell: If price is below the cloud when it’s WIDE AND RED and the Lagging Spanis ALSO BELOW the cloud.Page 10 of 17

In addition to clear entry conditions, Ichimoku also provides clear rules for tradingconditions that you need to steer clear of if you’re looking to ride a trend. Recallthat the system helps identify trends -- but also measures the strength of a trend.As a result, if it seems that the market is indecisive -- or that a trend can’t besustained -- Ichimoku will signal that for you.Here are the basic conditions to steer clear of:1. Cloud Crossover: When the Lagging Span is crossing over the Cloud onboth sides -- or price is running through the cloud with ease. This meansthat there is market indecision.2. Thin Cloud: If the Cloud isn’t wide you simply don’t have the strength toprovide the support and resistance you need to keep the trend moving inthe desired direction.3. Lagging Span Position: Remember that the Lagging Span is yourconfirmation point. You need it either well above or well below price andthe cloud. If it’s venturing too close, crossing or even touching the cloud -simply steer clear.Page 11 of 17

Amazingly enough, many traders still find the principles of Ichimoku a bit difficultto follow. Perhaps it’s the shifting nature of the cloud or understanding the falsesignals that can sometimes surface.Figure 5 No-trade zone in the cloud! Price is crossing through the cloud multiple times with ease and the Lagging Span isn’t inproper position for a sustained trend trade!]If you’re asking yourself ‘Okay, if this is so easy, why isn’t everyonedoing it?’The answer is simple. Ichimoku is notorious for giving false, misleading signals.Especially for shorter timeframes and for futures.Traders will think there is good confirmation -- only to find that minutes later theyare stopped out of the trade -- or that their exits were impossible to pin down.After all isn’t that the age-old question with trend trades? When to exit?Fortunately, there is a fool-proof system available that provides clearconfirmation points for both entries and profit targets. These confirmationpoints work in concert with the lagging span and the cloud.Page 12 of 17

They are based on historical and projected institutional trade levels. Which iscritical, because if you are going to profit with Ichimoku consistently -- you needto be trading with those that are driving the trend.Chapter Four: How To Confirm Ichimoku Entries And ExitsWith PrecisionIf you happen to live north of Dallas, Texas in the border town of Wichita Falls, orjust a bit further north in Oklahoma, you’re smack dab in the middle of tornadoalley. Beautiful country for sure, but the storms that range across this part of thecountry are the stuff of Pecos Bill-like legend.Why? Without boring you with a lesson in meteorology, this is where the warmand cool fronts of the United States happen to converge creating the perfectconditions for epic storms.During any given summer, ‘tornado alley’ can shift north as far as Iowa andMinnesota. Experienced storm chasers know exactly where to watch, and whatconditions they need to stalk for a mammoth twister.The same is true in any futures market.There are specific levels at which price can take off in a roaring trend -- or simplygrind in a frustrating, profit-guzzling chop.And this is the key to Ichimoku for day trading futures.If you don’t know exactly where these levels are with to-the-tick precision you will be chasing clouds. You’ll be falling for false signals, entering tradesprematurely and getting stopped out before you know what hit you.A simple system can reduce, or even eliminate this problem altogether. It hingeson having clear confirmation levels that work with the cloud.Check out the below ES example. Here we have our Ichimoku cloud and laggingspan. Note the addition of the Confirmation Grid. This dynamic level gives us thereference point we need for clear entry and exit conditions.Page 13 of 17

Notice how price routinely respects these levels each time they are crossed. Whydoes price seem to care, even as it’s roaring down to new lows? Because theseare the levels where institutional activity is expected.Not just any activity. Institutional activity. As in, the traders that are driving90% - 95% of the market’s volume at any given time.Figure 6 Don’t chase clouds blindly! Always know where institutional trading activity is expected -- down to the tickwith a confirmation grid!Seeing this allows us to be far more confident about sell entry. Just as important,this allows us to be far more precise about our targets and exit.As the trend starts to wind down - we know exactly what to watch for:1. Cloud Change: The cloud has been bullish and is starting to get wider -so if price ventures towards it, we need to be prepared to exit.2. Lagging Span Below: The lagging span is still below the cloud, so westay in, monitoring each confirmation grid point.Page 14 of 17

3. Confirmation Grid At Convergence: The second the lagging spanventures toward the cloud, getting ready for a crossover we now stalkthat exact confirmation grid point for our final exit.Figure 7 Ride Ichimoku trends with precision and confidence thanks to the confirmation grid!The best part? You don’t have to spend weeks or months watching clouds andlagging spans to get the hang of this.You can start generating day trading profits right away using this simple, fullyautomated system.It’s called the Ichimoku Ninja.It combines the key elements of the Ichimoku trading strategy into one powerful,yet shockingly simple system for reliable profits.1. Futures Cloud: You can add a cloud perfectly calibrated for the priceaction of a futures market.Page 15 of 17

2. Volatility Renko Bricks: Forget having to figure out exactly what settingsyou need to have your chart reveal a trend.3. Confirmation Grid: Finally, the vital trade confirmation points you need tomanage your entries, targets and exits with confidence.These are three vital components that will put profits within reach -- regardless oftimeframe or preferred futures market. And they come with step-by-step videotutorials and guides to creating chart templates.It’s time to crush the misconceptions that have held traders back from usingIchimoku to generate futures day trading profits. Add the tools you need to takethe guesswork out of cloud entries and exits.Simplify your trading and start profiting with Ichimoku today.Stay profitable,Jonathan Moore – Ninjacators LLCNinjacators.com 228 Park Ave S New York, NY 10003 United StatesPage 16 of 17

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Ichimoku Made Easy For Futures How a simple change allows dozens more intraday trend winners to come to you when day trading with Ichimoku Cloud March 18th, 1925. It was almost as though it was thumbing its nose at God himself as it made its path of endless destruction. Thr