A Guide to Trading Cryptocurrencies Part 2: Ichimoku Kinko Hyo

If you want to invest in or trade cryptocurrency, a powerful predictive tool that is often overlooked is the Ichimoku Kinko Hyo. The Ichimoku Kinko Hyo method originates from Japan and has been under-utilised by professionals in the West due to the lack of translation and guidance on how to actually use it, with most dismissing it as an exotic indicator.

It is only in the past decade or so that Westerners have started to understand the power of Ichimoku Kinko Hyo.

This indicator works very well for BTC-USD and other cryptocurrencies, as well as working successfully for Asian traders trading in stocks, commodities and futures. Ichimoku Kinko Hyo translates into English as ‘equilibrium chart at a glance.

You can take a quick glance at the chart and immediately find the balance point, or ‘equilibrium zone’ for the asset in question. Invented by Goichi Hosoda, a journalist, he released the Ichimoku system to the public in 1968 after he recruited a group of students to run simulations by hand to test the system for two decades.

The Ichimoku system allows you to identify breakouts and jump on an ongoing trend. Moreover, it can give signals to enter trades and allows you to gauge momentum.


Read more ... source: TheBitcoinNews