weekend charting part 2, page-3

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    it is important to understand that, in Ichimoku, the moving average used is NOT a moving average of Close. It is a moving average of High+Low/2, thus it is a moving average of the extremes of the period of your time frame.

    Paul has explained very well in his videos why Ichimoku is such a great charting system, enabling us to be able to see fairly quickly (after some practice) at a glance where a particular instrument is at.

    I would also watch the red and blue lines when it becomes flatlining, which means the instrument may be taking a rest, particularly the blue line (the longer moving average).

 
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