How to Activate Ichimoku Cloud on Binance (a short guide)
There are articles upon articles and blogs about how to use and read the Ichimoku Cloud, so feel free to use them as there is really nothing more to add. This technical analysis method was developed by Goichi Hosoda, a Japanese journalist, and published in the 1960s. It provides various data points as compared to the standard charts. If you are interested to learn it, I strongly recommend it. The word "ichimoku" translates into "one look," meaning that analysts can spot support and resistance levels in a just one quick view, or at a glance.
When I started learning it, it seemed complicated at first. But as everything in life, anything is easy once your know it. It is possible to learn how to read the charts and interpret its trading signals. However, in this short guide I will not go into the details, as there is already a lot of content on that and much better explained.
For starters, the training from Binance Academy is really amazing, well described and helpful.
What I had troubles with as beginner was how the different names/terminology used in Ichimoku were various across different exchanges, bloggers and traders. Each line has a name - its original Japanese name and then each line has at least other 2-3 other names, depending on the exchange or trader.
In this guide I will show:
1) quick terminology clarification: how the lines are called in Binance and by their original name
2) how to activate the Cloud in Binance exchange (with screenshots)
1. What can these lines do?
There are three main lines that you need to understand in Ichimoku analysis and the extra two leads. So, I will just summarise them all five bellow without too much detail, this is just a clarification of the existing naming convention and their specific names in the exchange. Feel free to correct or add anything if needed.
Tenkan Sen and Kijun Sen are the main lines in this method, they are named in Japanese and show how the moving averages used in an Ichimoku Cloud.
1. The Tenkan Sen is also known as Red Line or Slow Line and in Binance exchange you can find it as "Base Line"
2. The Kijun Sen is also known as Blue line or Fast Line and in Binance Exchange you can find it named as "Conversion Line"
3. Chikou Span is also known as Lagging Line or Orange Line and in Binance Exchange you can find it as "Lagging Line"
"Lead 1" and "Lead 2" are forming the reddish and greenish blobs, the clouds in the Ichimoku Clouds.
These lines calculate and help make price movement predictions, depending on how you input your periods in the settings sesction of your Binance Ichimoku Cloud (you can leave them as default also)
The trading system is not always accurate and in no way do not take it as investing advice. But in general, it works this way:
- before taking the price look at the orange line to be above the clouds. Also, price must be above the cloud
- watch for price to touch the fast line (blue line or conversion line) as that is a good buying signal. You can buy
- if price is testing / touching the red line you can buy again (also known as go long)
- is good to exit the position anytime the fast line crosses bellow the red line
Above was just a short example of how to the "buy low, sell high" trading, but feel free to do the opposite if that is suitable for your situation. Know that, going short is much riskier. In all cases, my strong advice is to just do not trade at all. Is much better, safer and healthier option.
2. How to Bring Some Clouds Into my Life?
To activate Ichimoku Cloud in Binance - GO to Technical Indicator -> Indicators:
-> type in Ichimoku -> and choose Ichimoku Cloud from the list (hit Enter):
Now you see the Ichimoku is active on your trading view Binance ->click on the 3 dots ... -> go to Settings:
From here choose your inputs (periods for calculation as needed or leave them default):
Is also good idea to colour your lines in the preferred nuances, thickness, as it helps a lot:
So that's it, for today.
This is not trading advice.
Enjoy the time on the clouds while keeping the feet on the ground!
