The most simple way to use Ichimoku Kinko Hyo

Today, I would like to write about the "most simple way to use Ichimoku Kinko Hyo".

When trying to master Ichimoku Cloud, I think it is a quite challenging charting tactic with high difficulty level, including cycle theory and price range theory.
I think it's worth studying once you are captivated by Ichimoku Cloud.

However, if you cannot understand it to that extent and just want to quickly refer to it...

- Golden Cross and Dead Cross of Conversion Line and Base Line
- Intersection of Lagging Span and Candlestick Chart
- Resistance and Support at Cloud Upper and Lower Limits

The Base Line, Conversion Line, and Cloud Upper and Lower Limits (Leading Span) work quite well as support and resistance levels, so it's also useful to imagine them as points for reversal or stop.

Furthermore, the easiest way to identify is the Golden Cross (GC) and Dead Cross (DC) of 'Candlestick Chart' and 'Conversion Line'.
I only use the Ichimoku chart with this lagging line as a tactic. I don't have any more knowledge.

Buy when the candlestick chart switches above the conversion line.
Sell when the candlestick chart switches below the conversion line.
After taking a position, when the conversion line crosses the support and resistance line, exit the position.

It's very simple, isn't it?

This was posted by Mr. Hosoda on X (Twitter). If the conversion line breaks above or below, there will be a direction in that direction. Pay more attention to the breakdown below than the breakout above. In the above candlestick chart, the conversion line is the red line and the baseline is green.
That's right, the conversion line switched below the resistance (support) line on 4/1, and then the conversion line became resistance multiple times, causing a drop of 3000 yen before I realized it.

Even if we go back a little, it's been working quite well, hasn't it?

In other words, if the price of the stock crosses the conversion line with GC and DC, the short-term market sentiment will change. By quickly switching back to the original market condition when pushed back by momentary noise, you can grasp the flow of the market quite well.

I originally focused on the conversion line, the base line, and the lagging line of the Ichimoku Kinko Hyo, and avoided studying other difficult theories because I felt that the study cost until understanding and achieving results was abnormally high.

It was good that Professor Hosoda posted that even with such a simple usage, results can be achieved with the Ichimoku Kinko Hyo.
The credibility is completely different between 'It's my experience!' and 'It's Professor Hosoda's teaching!' (laughs)

I think it's very important to come up with your own tactics using basic charts that everyone knows and has used at least once, because many people look at them.
That's because many people look at the chart.

So, first of all, let's refocus on the Ichimoku Kinko Hyo, and try watching the market with attention to the cross between the conversion line and the stock price.

As of 4/18, it's a check for 'selling on rebound' or 'breakout' at the conversion line at 38,725 yen, so if it stops falling around 37,800-37,900, there is an expected return to the conversion line around 38725 yen. The calculation formula is simple, based on the average of the high and low over 9 days, so you can immediately understand what will happen to the stock price when the conversion line goes up, down, or sideways tomorrow.

Just this alone gives you a glimpse of the immediate tactics, doesn't it?!