Ichimoku is perhaps the best tool in Technical Analysis when it comes to find the Support and Resistance in market. The good thing is that it gives extremely clear signals of when to enter or exit from a Trade and also when to hold your Investments (as you can see in the Chart).
In this particular example, you would have entered into the Long Trade at around 214.00 just after the Kumo Breakout and the Signal was also confirmed by a Bullish Chikou-Span (Green line). The highest price we’ve seen since our Entry was 627.60 which means a profit of 413.6.
This is the most simple trading strategy where you’re not adding further lots / positions and not reinvesting your profits. Should you do that, the profits would have skyrocketed for sure …
Just assume if we bought 1,000 Shares (worth of 214,000) of Tata Steel at 214, you should have had a profit of 403,000 (based on the closing price of 31st Dec 2009 at 617.6) which is nearly 200% ROI of your initial investment.
Loading ...
Hi Asher,
Your website is full of knowledge, Thanks for all the good work.
I had a que, How dis you manage to see the Ichimoku indicator for Indian Stock (Tata Steel).
I am from India, It will be great to use Ichimoku on Indian market.
Regards
Rajeev Sharma
Hi Rajeev,
Try googling Nexus Charts
Hi Rajeev,
ChartNexus gives free EOD charts for Nifty and Sensex stocks, with Ichimoku tool as well.