Best Non Repainting Forex Indicator For Day Trading

Forex trading is one of the most profitable businesses in the world. To succeed in this business, traders need to have a combination of skills, knowledge, and tools. One of the most important tools that traders need is a reliable indicator. An indicator is a tool that helps traders to predict the direction of the market. There are many indicators available in the market, but the best non-repainting forex indicator for day trading is the Ichimoku Kinko Hyo. In this article, we will discuss the Ichimoku Kinko Hyo indicator and how it can help you in day trading.

What is the Ichimoku Kinko Hyo Indicator?

The Ichimoku Kinko Hyo is a technical indicator that was developed by a Japanese journalist named Goichi Hosoda in the late 1930s. The indicator is used to identify trends and support and resistance levels in the market. It is a non-repainting indicator, which means that it does not change its signals once they are formed.The word Ichimoku Kinko Hyo means “one look equilibrium chart” in Japanese. The name reflects the indicator’s ability to provide a complete view of the market with just one glance.

How does the Ichimoku Kinko Hyo Indicator work?

The Ichimoku Kinko Hyo indicator consists of five lines:1. Tenkan-sen: The Tenkan-sen line is the conversion line. It is calculated by taking the average of the highest high and the lowest low over the past nine periods.2. Kijun-sen: The Kijun-sen line is the base line. It is calculated by taking the average of the highest high and the lowest low over the past 26 periods.3. Senkou Span A: The Senkou Span A line is the first leading span. It is calculated by taking the average of the Tenkan-sen and the Kijun-sen, and then plotted 26 periods ahead.4. Senkou Span B: The Senkou Span B line is the second leading span. It is calculated by taking the average of the highest high and the lowest low over the past 52 periods, and then plotted 26 periods ahead.5. Chikou Span: The Chikou Span line is the lagging span. It is the current closing price plotted 26 periods behind.The Ichimoku Kinko Hyo indicator provides multiple signals that traders can use to make trading decisions. Some of the signals include:1. Tenkan-sen/Kijun-sen cross: When the Tenkan-sen crosses above the Kijun-sen, it is a bullish signal. When the Tenkan-sen crosses below the Kijun-sen, it is a bearish signal.2. Kumo breakout: When the price crosses above the Senkou Span A, it is a bullish signal. When the price crosses below the Senkou Span B, it is a bearish signal.3. Chikou Span cross: When the Chikou Span crosses above the price, it is a bullish signal. When the Chikou Span crosses below the price, it is a bearish signal.

Advantages of using the Ichimoku Kinko Hyo Indicator

1. Easy to use: The Ichimoku Kinko Hyo indicator is easy to use and can be used by both novice and experienced traders.2. Provides multiple signals: The indicator provides multiple signals that traders can use to make trading decisions.3. Non-repainting: The indicator is non-repainting, which means that it does not change its signals once they are formed.4. Provides a complete view of the market: The indicator provides a complete view of the market with just one glance.

Disadvantages of using the Ichimoku Kinko Hyo Indicator

1. Complex: The Ichimoku Kinko Hyo indicator is complex and may take some time to understand.2. Not suitable for all market conditions: The indicator may not work well in choppy or sideways markets.3. Lagging: The Chikou Span line is a lagging indicator and may not provide timely signals.

How to use the Ichimoku Kinko Hyo Indicator in day trading?

To use the Ichimoku Kinko Hyo indicator in day trading, traders should follow these steps:1. Identify the trend: Traders should identify the trend using the Kumo (cloud). If the price is above the Kumo, the trend is bullish. If the price is below the Kumo, the trend is bearish.2. Wait for a signal: Traders should wait for a signal to enter or exit a position. The signals can be generated by the Tenkan-sen/Kijun-sen cross, Kumo breakout, or Chikou Span cross.3. Use stop-loss: Traders should use stop-loss to limit their losses in case the trade goes against them.4. Take profit: Traders should take profit when the price reaches their target or when a signal to exit the position is generated.

FAQ

Q: What is a non-repainting indicator?
A: A non-repainting indicator is an indicator that does not change its signals once they are formed.Q: What is a lagging indicator?
A: A lagging indicator is an indicator that provides signals after the price has already moved.Q: Can the Ichimoku Kinko Hyo indicator be used in all timeframes?
A: Yes, the Ichimoku Kinko Hyo indicator can be used in all timeframes.Q: Is the Ichimoku Kinko Hyo indicator suitable for all market conditions?
A: No, the Ichimoku Kinko Hyo indicator may not work well in choppy or sideways markets.

Conclusion

The Ichimoku Kinko Hyo indicator is one of the best non-repainting forex indicators for day trading. It is a powerful tool that provides multiple signals that traders can use to make trading decisions. However, traders should also be aware of its disadvantages and use it in conjunction with other indicators and tools. With the right skills, knowledge, and tools, traders can succeed in forex trading. Thanks for reading and happy trading!