Ichimoku with the Bands System


As the name suggests, Ichimoku with the bands system is combination of Ichimoku cloud with Fibonacci bands. This Trading system help traders to trade with the trend and also protects traders from taking trades in sideways market.

Ichimoku with the Bands System Overview

Ichimoku With The Bands

Ichimoku cloud is combination of technical indicators that show support and resistance areas, momentum and trend direction. While moving averages are based on closing price,ichimoku system is based on high and low of the past price data.

If Ichimoku cloud is green then it means trend is bullish and if ichimoku cloud is red then it means trend is bearish. Red Line is Tenkan Sen line and blue line is Kijun Sen line.If Tenkan Sen line is above the Kijun Sen line then it adds more to bullishness. If Tenkan Sen Line is below the kijun Sen Line then it adds more to bearishness.

Ichimoku with the Bands System Explanation

Fibonacci Bands are used as support and resistance indicator in this trading system. Moving Average of 233 period, a Fibonacci number, is used as pivot and then Bands are created from 0.618 deviation of the Moving Averages. If price is in up trend and Slope of band is up, those bands tend to provide support for the trend. If trend is down and slope of band is down, then bands tend to provide resistance to the price.

Ichimoku With The Bands Anatomy

If ichimoku and bands both are in bullish mode then traders should look for buy opptournities & if both are bearish then traders should look for bearish opportunities.

Ichimoku with the Bands System : Buy conditions

Ichimoku With The Bands Buy Signal
  • Fibonacci Bands should be sloping upside.
  • Price should be trading above the Ichimoku cloud.
  • Buy When Tenkan Sen line cross above the Kijun Sen line.

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Ichimoku with the Bands System : Sell conditions

Ichimoku With The Bands Sell Signal
  • Fibonacci Bands should be sloping downside.
  • Price should be trading below the Ichimoku cloud.
  • sell When Tenkan Sen line cross below the Kijun Sen line.

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I have been actively trading stocks and currencies since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund which has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.

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