secretos ICHIMOKU

Prévia do material em texto

KIANA DANIAL
How to Apply Ichimoku Kynko Hyo 
to Develop Winning Trading Strategies
Based on Your Risk Tolerance
CEO OF INVEST DIVA
“This is a MUST-READ for any trader looking 
to make better, faster trading decisions.” 
– Rob Booker, Trader Radio
ICHIMOKU secrets
How to Apply Ichimoku Kynko Hyo 
to Develop Winning Trading Strategies
Based on Your Risk Tolerance
KIANA DANIAL
CEO OF INVEST DIVA
ICHIMOKU SECRETS
How to Apply Ichimoku Kynko Hyo to Develop 
Winning Strategies
The Japanese Way to Trading Success
Copyright © 2016 by Invest Diva, KPHR Capital, LLC. All
rights reserved. Except as permitted under the United
States Copyright Act of 1976, no part of this publication
may be reproduced or distributed in any form or by any
means, or stored in a database or retrieval system,
without the prior written permission of the publisher.
There is no guarantee that you will earn any money using the techniques and
ideas in materials, or the advice found in this book. The information contained
in this book is strictly for educational and informational purposes. Nothing
contained in this book constitutes financial, legal, tax or other professional
services advice. While best efforts have been used in preparing this book, the
author and publisher make no representation or warranties of any kind and
assume no liabilities of any kind with respect to the accuracy or completeness
of the contents and specifically disclaim any implied warranties of
merchantability or fitness of use for a particular purpose. Neither the author
nor the publisher shall be held liable or responsible to any person or entity
with respect to loss or incidental or consequential damages caused, or
alleged to have been caused, directly or indirectly, by the information or
programs contained herein. No warranty may be created or extended by
sales representatives or written sales materials. Every financial services
company, investment advisor, or broker-dealer is different and the advice and
strategies contained herein may not be suitable for your situation.
All trademarks used in this book remain property of their respective holders,
and are used only to directly describe the products being provided.
Proofread by:
Ken Darrow, M.A.
Charts prepared on:
Trading Station, TradingView
“This is a must-read for any trader looking to make better,
faster trading decisions. Kiana has written the definitive
guide to profiting from the Ichimoku Kynko Hyo - in a clear,
step-by-step format that is perfect for beginners or even
advanced traders. She not only shares some incredibly
effective trading strategies - but she also explains the
simple market psychology for why the strategies work.”
– Rob Booker, Host, Trader Radio
“This isn’t just a book, it's a recipe and blueprint for
changing your trading fortune. It breaks down the
Ichimoku strategy for all, from short term traders to long
term investors, and combines it with your specific risk
tolerance and financial goals. This is something most
trading courses fail to do, and it's the reason why most
traders lose money. Kiana’s approach will not only teach
you how to trade with confidence, it will also teach how to
significantly improve your odds of a successful trade. A
must read for all serious traders.”
– Maia Loloi, Property Manager
“Kiana does an excellent job of breaking down the
Ichimoku indicator in a simple, easy to understand
format. She dives deep into the history of Ichimoku and
how to apply it to your trading. Regardless of whether you
are a new trader, experienced trader, or somewhere in-
between this is a must read. It is the closest thing to a
“holy grail” I have seen when it comes to the Ichimoku
indicator.”
– Trent Hoerr, Head of Sales Forest Park FX
What People Are Saying
“If you're a technical trader, the Ichimoku strategy is a
proven method having success in the markets. And if you
want to understand how Ichimoku works, this book is all
you need. Kiana breaks Ichimoku down in a way that's
easy to understand, from entry and exit points, to using it
for different types of charts. Overall a great read that
takes a concept that can be complicated and makes it
easy to digest.”
̶ Spencer Israel, Editor, Producer at Benzinga
“I don’t make a single investing move without Kiana’s
guidance! It is amazing how I only make money when
Kiana has approved the strategy during our private
lessons.”
– Melissa Ward, Single Mom
"Financial markets are not easy to understand, and often
you can make mistakes and lose money. It’s extremely
difficult to find an expert to trust and follow for trading
strategies. Kiana is one of those rare experts who not
only is a great trader, but also has the ability to explain
complicated techniques in simple terms. In this book
Kiana has distilled the Ichimoku technique so anyone can
learn it and implement it in their trading strategy based on
their risk tolerance. A bonus on top of all this is that Kiana
is also a hilarious entertainer. After you are done with this
book, you should check out her videos explaining trading
concepts, learn from it and also have a laugh or two.
Kiana, congratulations for all your success in teaching
people how to make money by trading.”
– Carmelo Imerti, Technical Analyst
"Kiana is excellent at explaining interesting and complex
market phenomena in clear, useful, and approachable
ways for traders and investors."
– Chris Meyer, Clinical Assistant Professor, 
Fordham University, Fordham Foundry
"We all have people we idolize. For me it's Kiana
Danial. Her story is amazing and very empowering to
women all over the world!"
– Ina Kocibelli, FX Trader
“A MUST READ for all traders interested in making
money like a pro! I first met Kiana after I attended one of
her live webinars and have continued to be impressed
by her teaching themes and explanations. I have
referred many clients to her and they’re all very pleased
and impressed on how much they learned in a short
period of time. With a firm but friendly demeanor, Kiana
manages to keep execute excellency not only in her
education courses, but also in her books.”
– Michael Vega, Business Development at 
DriveWealth LLC
“Invest Diva breaks down a sophisticated Ichimoku
trading strategies that can help the traders at any level
understand and apply to their own portfolio. Highly
recommended to all technical chartists!”
– Fan Yang, CEO at FXTimes.com
“Kiana has done a tremendous job of simplifying a
powerful yet commonly misunderstood indicator.
Intermediate to experienced traders will find this book of
great value if they are looking to adjust their medium to
long term strategies to fit specific risk tolerances.”
– Ilan Azbel, CEO at AutoChartist
“Kiana Danial has a real knack for breaking down a
complex subject into understandable and practical
building blocks so that once an investor finishes
reading ICHIMOKU secrets, they will have a clear
Ichimoku trading model to follow. Kiana’s successful
trading career gives the book substance and is a must
read for any serious investor.”
– Jody Samuels, CEO, FX Trader’s EDGE
“Kiana’s market analysis is always based on empirical,
unbiased study and she adheres to the golden rule of
trading: “follow the data”.
If you want to increase your level of success in trading,
follow Kiana!”
– Jay Norris, Founder, Trading University
To my awesome husband, who not only gives me unwavering
support, but who also puts up with my workaholism. I love
you with all my heart. Thank you for being so amazing.
To my late father-in-law who gave me the idea for the name
of this book right before he passed away. We love you and
we miss you.
To my wonderful mom and dad who always believe in me.
Contents
Introduction
Chapter 1 – What Is Ichimoku?
• Fundamentals of Ichimoku
• Terminology
• General Interpretation
• Calculations, 9, 26 52 Format
• Should You Change the Format?
Chapter 2 – Using Ichimoku as an Entry Signal
• TheTrigger
• The Confirmation
• Bullish Market Confirmation: 
High, Medium, Low Risk
• Bearish Market Confirmation: 
High, Medium, Low Risk
Chapter 3 – Using Ichimoku as an Exit Signal
• Using the Cloud to Exit Bearish Positions
• Using the Cloud to Exit Bullish Positions
• Using Ichimoku as a Stop-Loss
Chapter 4 – Using Ichimoku on Different Time Frames
• The Big Secret
• Ichimoku on Monthly Chart
• Ichimoku on Daily Chart
• Ichimoku on 4-Hour Chart
• Ichimoku on 1-Hour Chart
Chapter 5 –Ichimoku – Fibonacci Combo
• Combining Ichimoku with Fibonacci after a 
Downtrend and an Uptrend
• Risk Management
Chapter 6– Case Studies
About the Author
INTRODUCTION
Ichimoku Kinko Hyo （一目均衡表） is one of my favorite
indicators in technical analysis. I initially learned about it first-
hand from the Japanese. Over my years of technical analysis and
trading, and teaching courses at Invest Diva, in Japan and in
universities in New York, this one indicator has proven to be one
of the best predictors of future movements, especially as a key
part of medium to long-term investment strategies.
After enrolling in the NYU School of Professional Studies to
become a Certified Financial Planner, I started thinking of
methods to combine Ichimoku interpretations with Fibonacci
retracement levels to create strategies based on traders’ risk
tolerance and financial goals.
What you will learn in this book are real examples of Ichimoku
based strategies that have and have been successful in the past.
You must know that some Wall Street insiders and professional
traders are irritated by that fact that I’ve put the Ichimoku Secrets
out in the world. There are many components to Ichimoku;
however, only the combination of a few components has been my
main secret to trading success… Up until now only premium
Invest Diva students have had access to this. I am going to reveal
it to you in this book.
From Ichimoku to Trading Success
10
I will cover the best time frames to use Ichimoku, as well
as best practices and combinations with Fibonacci
retracement levels to develop a strategy that best suits
your risk tolerance and financial goals.
So, without further ado, let’s get into what the heck
Ichimoku is, and how you can apply it to your trading
strategy.
11
WHAT IS ICHIMOKU?
CHAPTER ONE
FUNDAMENTALS OF 
ICHIMOKU
Understanding Ichimoku Kynko Hyo
Ichimoku is short for Ichimoku Kinko Hyo, which can be
translated as “a glance at a chart in balance”.
A Japanese journalist called Goichi Hosoda invented this
charting technique in 1936, and since then Ichimoku charts
have become a popular trading tool in Japan.
Of course, love at first sight can be complicated. But once
you get to know it, magic can happen. Before we reveal the
chart, let’s prevent a major brain meltdown by first
introducing the stuff you are going to see on your chart
when you insert Ichimoku onto it.
Figure 1.1
13
http://investdiva.com/?action=signup&mlad&urname
雲 Kumo or Cloud
基準 Kijun or Base line
転換 Tenkan or Turn line
遅行 Chiko or Delay
“
Your eyes are going to get used to 
this, and after one day you will feel 
that a chart without Ichimoku is 
totally naked. 
“
Now we are going to add all these lines and moving
averages to our trading chart.
Don’t panic; your eyes are going to get used to this,
and after one day you will feel that a chart without
Ichimoku is totally naked.
TERMINOLOGY
Japanese to English
14
First let’s do basic introduction, and then jump into the
interpretation of Ichimoku and all the secrets you need to
know.
Figure 1.2
Kijun line (base line in solid, thick pink color). This is
the average of the highest high and the lowest low within
the past 26 candles. We can also call it the “slow line”
because it reflects a whole 26 periods.
Tenkan line (turn line, solid, thin black color). This is
the average of the highest high and the lowest low within
the past 9 candles. We can also call this the “fast line”
because it reflects less periods.
Chiko (sometimes spelled chikou) span (delayed line,
thick, dashed blue color). This shows the most recent
candle’s price, but it is drawn 26 periods behind.
15
http://investdiva.com/?action=signup&mlad&urname
Kumo (cloud). This is the area between two lines that
plots the future! The first thin, dotted line is calculated by
averaging the tenkan line and the Kijun line plotted 26
periods ahead. The second one is determined by
averaging the highest high and the lowest low for the past
52 periods plotted 26 periods ahead. These two lines are
called Senkou spans. Senkou means “future”.
One good thing about modern trading, including those of
Forex, stocks, equities and even ETF platforms, is that you
can choose different colors for each of the Ichimoku lines
to make your Ichimoku indicator more colorful and to
identify the lines easily.
As seen in Figure 1.1, I usually like to use pink for the
Kijun line, black for the Tenkan line, blue for the Chiko
(Lagging) line, and light green for the Kumo (cloud).
16
GENERAL 
INTERPRETATION
Using Ichimoku as Trading Signal
Here is a cheat sheet on how Ichimoku is generally
interpreted for trading signals.
More Common Interpretations
• As long as the five lines are parallel, the trend will
continue in that direction.
• When the candles are inside the Ichimoku cloud, that
means that the market is in the process of
consolidating, and it is not a good time to buy or sell.
• The lower band of the prevailing cloud can be used as
a layer of support.(See figure 1.3)
• The upper band of the prevailing cloud can be used as
a layer of resistance.
Buy Signal Sell Signal
The candles are above the cloud The candles are below the cloud
Chiko span crosses above the cloud Chiko span crosses below the cloud
Tenkan line crosses above the Kijun 
line
Tenkan line crosses below the Kijun 
line
17
“
You can use Ichimoku cloud as 
layers of support or resistance.
“
Figure 1.3
18
http://investdiva.com/?action=signup&mlad&urname
CALCULATIONS
The 9, 26, 52 Format
Most trading platforms generate Ichimoku kinko Hyo on a
9, 26, 52 format calculated as below.
Four of the five plots within the Ichimoku Kinko Hyo are
based on the average of the high and low over a given
period of time. For example, the Tenkan line is simply an
average of the 9-day high and 9-day low. Before
computers were widely available, it would have been
easier to calculate this high-low average rather than a 9-
day moving average. Here is how you can do the
calculation, although you really don’t have to, because
your trading platform will magically do it for you.
Tenkan-line (AKA Tenkan-sen, Conversion Line): (9-
period high + 9-period low)/2))
The default setting is 9 periods and can be adjusted. On a
daily chart, this line is the mid-point of the 9-day high-low
range, which is almost two weeks.
Kijun-line (AKA Kijun-sen, Base Line): (26-period high
+ 26-period low)/2))
The default setting is 26 periods but can be adjusted. On a
daily chart, this line is the mid-point of the 26-day high-low
range, which is almost one month).
19
Senkou Span A (Leading Span A): (Tenkan Line + Kijun
Line)/2))
This is the midpoint between the Conversion Line and the
Base Line. The Leading Span A forms one of the two
Cloud boundaries. It is referred to as "Leading" because it
is plotted 26 periods in the future and forms the faster
Cloud boundary, which helps traders with predicting future
market movements.
Senkou Span B (Leading Span B): (52-period high +
52-period low)/2))
On the daily chart, this line is the mid-point of the 52-day
high-low range, which is a little less than 3 months. The
default calculation setting is 52 periods, but can be
adjusted. This value is plotted 26 periods in the future and
forms the slower Cloud boundary.
Chikou Span (Lagging Span, Delayed Span): Close
plotted 26 days in the past
The default setting is 26 periods, but can be adjusted.
20
While some technicalanalysts recommend changing the
format based on the time frame, in my experience it is best
to stick with the norm.
Why?
Because of the reason why an indicator works in the first
place. Why do you think indicators work? What do you
think they are an indication of?
Indicators or any other type of technical analysis work
because of market sentiment and crowd psychology.
Strategists and market technicians like me research and
evaluate hundreds of thousands of charts over the years
and observe the habits of the market during specific
periods of time.
The main idea of any technical analysis tool is that “history
repeats itself”.
So while you can go ahead and create a new type of
Ichimoku indicator with a new format over different time
frames, analyze the market psychology and the accuracy
of your indicator in that time frame, why reinvent the
wheel?
Should you change the 9, 26, 52 format?
21
To truly grasp the importance of this, you’ve got to learn
something that entrepreneurs such as Russell Brunson
actually learned from Tony Robbins, which is “If you want
to achieve success, all you need to do is find a way to
model those who have already succeeded.”
After reading this story, I thought back to some of the
things I’ve been successful with in my life. For instance,
when I was young, I wanted to be the best piano player in
the country, but the problem was that I wasn’t really that
good.
So, I went out there and found other pianists that were
amazing. I used to watch video tapes of them, and I would
model after what they did. I modeled after their moves and
their training. In a very short period of time, I was able to
go from being a bad pianist to being an award winning
pianist, to winning in competitions in Japan.
22
So I started talking to my friend who was a pro-trader, and
started to figure out how to make money by trading. A year
later, I moved to New York to work on Wall Street and
modeled after best strategists and, in the meantime, I
developed my own strategies that I am going to share with
you.
There’s always someone who comes up to me and says,
“You know, that’s cool, but I have figured out a better way
to do it.” Or, they might say, “I came up with a new
strategy that no one has ever thought of before.” They are
so excited, but I always take a step back and tell them the
same thing: “You can always tell who the pioneers are
because they have arrows in their back and are lying face
down in the dirt.” This is true if you think about it.
As investors, we have so much passion and drive to share
our strategies with the world. It’s a beautiful thing, but
most investors run out of one of two things before they find
success. They either run out of time or they run out of
money. The reason why this happens is because they are
trying to be creative and figure all of this stuff out. They
get all of these arrows in their back, and they never reach
a point where they can actually serve people and help
them. That’s the problem.
I have realized that I need to go and find out exactly what’s
working today and start there. With that, since I have done
extensive research on the 9, 26, 52 format of Ichimoku
Kinko Hyo so you don’t have to, let’s get into the secrets
so you don’t waste more time reinventing what has already
been invented.
23
USING ICHIMOKU AS 
AN ENTRY SIGNAL
CHAPTER TWO
THE TRIGGER
Introducing the Best Moments to Use Ichimoku
The general Ichimoku interpretation suggests that as
long as the market price is above the Ichimoku cloud,
it is a bullish signal. As long as it is below the cloud, it
is a bearish signal.
While this could play out from time to time, the best
time to use the Ichimoku cloud is the moment that
the market confirms a break.
If you don’t catch the moment of the breakout, you
are already too late to use Ichimoku as your indicator
and should move on to other methods.
“
The best time to use the Ichimoku 
cloud is the moment that the 
market confirms a break.
“
25
In a trending market, the first trigger could be spotted by
the Kijun and Tenkan line cross-overs. This works much
like normal moving average combinations where a short-
term moving average crosses a long-term moving
average.
In traditional usage of moving averages (MAs), as I have
explained in my book “Invest Diva’s Guide to Making
Money in Forex”, the cross overs are first responders to a
market reversal.
One popular way of using traditional moving averages is
based on Joseph Granville’s technique of technical
analysis—using the 200-day moving average versus the
30-day moving average to identify buy or sell signals.
Golden cross: When a short-term moving average
crosses above a long-term moving average, it means that
the speed of the upward movement in a short period has
become faster than the long-term speed. So this is
a buy signal.
Dead cross: When a short-term moving average
breaks below the long-term moving average, it indicates
that the speed of the downward movement in a short
period has increased. So this is a sell signal.
Initial Trigger 
in a Trending Market
26
http://investdiva.com/books
Beware of False Signals!
If you have paid attention to any of the Invest Diva
education services, you probably have already gotten used
to the idea that trading signals and indicators are often full
of $#?*.
The market participants often acts in an arbitrary fashion,
ignoring all the laws and rules. That is why we
should never rely on only one method of analysis and
should always confirm our decisions with other tools and
points of the Invest Diva Diamond Analysis (IDDA).
The dead cross is so called because it originates in
security trading, where when the prices go down, you are
screwed and you lose money.
Fortunately, in Forex trading you won’t have this problem
because you can make money in both directions. Short-
sellers of the stock market don’t normally consider this
bearish trigger so “deadly” either.
27
Figure 2.1 Golden Cross: Initial Bullish Trigger after a Downtrend
Initial Bullish Trigger after a Downtrend
The Tenkan line (fast moving average) crosses ABOVE
the Kijun line (slow moving average); this is the initial
indicator that the market could reverse into an uptrend.
28
Initial Bearish Trigger after an uptrend
The Tenkan line (fast moving average) crosses BELOW
the Kijun line (slow moving average).
Figure 2.2 Dead Cross: Initial Bearish Trigger after an uptrend
29
THE CONFIRMATION
Approaches for Investors with High, Medium 
and Low Risk Tolerance
It is not enough to catch the trigger on the Ichimoku
cloud. You need to stay put for the confirmation, and
then use it depending on your risk tolerance.
So what the heck is a confirmation of a break out?
There are three methods to identify a confirmation of a
break out. The first one is for investors with high risk
tolerance, the second one is for investors with medium
risk tolerance, and the third is for investors with low risk
tolerance.
You can calculate your risk tolerance by attending our
wealth management course, or by booking a private
financial therapy session with one of our coaches at
Invest Diva.
In this section, I’ll break down the definition of a
confirmation both in a bullish and in a bearish market.
30
Your first bullish indication is released once a strong
bullish candle tests above the Ichimoku cloud.
However, this is no confirmation, just an indication
that you might want to keep an eye on this pair.
Bullish Market Confirmation
SECRET #1: Higher Risk Confirmation 
based on a candlestick
Figure 2.3 Bullish Test above Ichimoku Cloud
31
In the above example, we not only had a
confirmation above the cloud, but also a confirmation
above the pivot level of 103.5, which we had
previously identified based on technical analysis.
After the market tests above the upper band of the
Ichimoku cloud, you still need to wait for the next
period candlestick to open above theIchimoku cloud.
That is a signal to enter a bullish position for
investors with higher risk tolerance.
Figure 2.4 Bullish Candle Confirmation above Ichimoku Cloud
32
* Invest Diva Diamond Analysis is the strategy
development method described in Kiana Danial’s book
“Invest Diva’s Guide to Making Money in Forex” as well as
Invest Diva’s award-winning education course, “Forex
Coffee Break with Invest Diva.”
At this point, an investor with high risk tolerance has the
thumbs up from the technical point of the Invest Diva
Diamond Analysis*, and can move on to the fundamental
and sentimental points to back up his/ her trading strategy.
33
http://investdiva.com/books
https://education.investdiva.com/forex-coffee-break-with-invest-diva-education-coursew0js78v1
https://education.investdiva.com/forex-coffee-break-with-invest-diva-education-coursew0js78v1
For investors who have medium risk tolerance, we
recommend waiting until after the first confirmation
candlestick is completed.
Normally, at this stage, we see a temporary pullback
based on crowd psychology, which gives you a great
entry point; you already have the confirmation of the
Ichimoku cloud, but choose to wait for the optimal
time to buy at a lower price.
SECRET #2: Medium Risk Confirmation 
based on candlestick pullback
Figure 2.5 Pullback after Confirmation above Ichimoku Cloud
34
The reason we recommend this approach to investors
with medium risk tolerance is because sometimes, the
pullback doesn’t occur and it could be a missed
opportunity for high risk investors.
This is not recommended to investors with lower risk
tolerance because, after the pullback, sometimes the
market dives back inside the Ichimoku cloud and
changes direction temporarily; something low risk
investors cannot afford in their portfolio.
“
Investors with medium risk 
tolerance can enter a bullish 
position once the market has 
temporarily pulled back AFTER 
a confirmation above the 
Ichimoku cloud.
“
35
The ultimate confirmation for long-term traders with
lower risk tolerance is triggered once the Chiko span
(lagging line) also breaks above the Ichimoku cloud.
Once this happens, we normally expect a trend
change and a new cycle on the daily chart. This
oftentimes coincides with a break above the cloud on
the monthly chart as well, in which case our scenario
is even stronger.
SECRET #3: Lower Risk Confirmation 
based on Chiko span
Figure 2.6 Bullish Confirmation after Chiko Span Breaks 
above Ichimoku Cloud
36
Note that the Chiko span, or lagging line, is shown as
a dashed, blue line in Figure 2.6.
Also noteworthy is that after the market first
confirmed above the Ichimoku cloud, it is followed by
a pullback towards the flattening Ichimoku cloud.
Unable to break below the cloud, it powers through
and breaks above the cloud once again; this time,
dragging the Chiko span with it.
With this, you understand why we recommend the
first two scenarios to investors with higher risk
tolerance: The markets are never 100% predictable.
Even though our methods will eventually pan out, an
investor with lower risk appetite will not be able to
afford the market pullback in case it happens.
For sure, sometimes the pullback doesn’t happen and
that would be a missed opportunity for an investor
with lower risk tolerance…
But, hey, better lose an opportunity than lose money,
eh?
37
Bearish Market Confirmation
The same approaches we used in a bullish market
can be used in a bearish market.
However, it is important to remember that bearish
market scenarios are best applicable to the Forex
market.
Shorting the stock market carries a substantial
amount of risk, not recommended to all investors.
Bearish market confirmation could also be used as a
stop-loss strategy for those who intend to cut their
losses short before the market fully changes direction
and the losses get out of hand.
Again, investors with high, medium and low risk
tolerance are recommended to use different
confirmation scenarios before exiting a losing
position.
38
Your first bearish indication is triggered once a strong
bearish candle tests below the Ichimoku cloud.
This is an indication that you might want to keep an eye
on the market, as a reversal may be due soon.
SECRET #1: Higher Risk Confirmation 
based on a candlestick
Figure 2.7 Bearish Test below Ichimoku Cloud
39
In this example, the market had a massive and sudden
bearish pressure due to a fundamental announcement.
Savvy investors would have followed the risk event as the
market tested the Ichimoku cloud, in order to jump on a
short position right as the market opened below the cloud.
After the market tests below the lower band of the
Ichimoku cloud, you still need to wait for the next period
candlestick to open below the Ichimoku cloud. That is a
signal to enter a bearish position for investors with higher
risk tolerance.
Figure 2.8 Bearish Candle Confirmation below Ichimoku Cloud
40
For investors who have medium risk tolerance, we
recommend waiting until the first confirmation candlestick is
completed, and then wait a little bit longer.
Normally, at this stage, we see a temporary correction
based on crowd psychology. If you are looking to short the
market or sell, this could be the optimal time as the market
has yet to reverse and you will get out just in time before
the reversal occurs, at a higher price.
SECRET #2: Medium Risk Confirmation 
based on candlestick pullback
Figure 2.9 Correction after Confirmation below Ichimoku 
Cloud
41
In this example, the correction took place across multiple
candlesticks. The reason for this could be due to the
strength of the bearish candlestick, which confirmed the
break below the Ichimoku cloud.
Corrections normally go up to one of the Fibonacci*
retracement levels, oftentimes the 50%.
A common question is, how do you know when the
correction is over?
Sadly, there is no guarantee for this, as there is none in
investing in general. Your best bet is to pick a level based
on your risk tolerance, and then wait patiently until the
markets balance out.
* Fibonacci retracement levels are defined and practiced in
Kiana Danial’s book “Invest Diva’s Guide to Making Money
in Forex” as well as Invest Diva’s award-winning education
course, “Forex Coffee Break with Invest Diva.”
“
Patience is a profitable virtue.
“
42
The ultimate confirmation for long-term traders with lower
risk tolerance is triggered once the Chiko span (lagging
line, shown as a blue, dashed line in the charts) also
breaks below the Ichimoku cloud.
Once this happens, we normally expect a trend change
and a new cycle. If you are in a bullish position when this
happens, you might want to consider cutting your losses
short and getting out before it’s too late.
SECRET #3: Lower Risk Confirmation based 
on Chiko span
Figure 2.10 Bearish Confirmation after Chiko Span Breaks 
below Ichimoku Cloud
43
As you may have noticed, this low risk bearish confirmation
happened 7 periods after the correction. So while a
medium and high risk investor is already making money in
the bear market (if they used this indication to short the
market), the low risk investor is lagging behind.
However, the beauty of this is that this final trigger
coincided with a break below the 50% Fibonacci level as
well, which further strengthens our strategy,
“
Taking lower risk could result 
in lower profit. However, it has 
an equal potential to result in 
lower losses. 
“
44
USING ICHIMOKU AS 
AN EXIT SIGNAL
CHAPTER THREE
As briefly mentioned in Chapter two, you can use Ichimoku
Kinko Hyo as an exit indication.
Personally, I mainly use Ichimoku as an entry point and
use Fibonacci methods to exit. However, there are
important Ichimoku scenarios you need to keep in mind in
case you enter based on techniques other than Ichimoku
indications.
46
THE CLOUD
Using the Kumo (cloud) as Your Pivot Zone
The Ichimoku cloud canbe used as an important
pivot zone once the market approaches it.
While a breakout (above or below) the cloud can
be used as an entry signal, a test or approach
towards the lower/ upper band of the cloud can be
used as an exit point.
In a bearish position, the upper band of the
Ichimoku cloud can be used as a support level. If
the market fails to break below the cloud, then the
cloud turns into a pivot zone.
In a bullish position, the lower band of the
Ichimoku cloud can be used as a resistance level. If
the market fails to break above the cloud, then the
cloud turns into a pivot zone.
47
Using the Cloud to Exit 
a Bearish Position
In this example, we used an alternative strategy to enter a
bearish position in the USD/CAD pair as it topped out in
January 2016.
We then used the upper band of the Ichimoku cloud as our
profit taking limit order at 1.38.
Note that the pair went on to break below the Ichimoku
cloud and started a downtrend afterwards. We entered a
new bearish position after exiting this one, once the market
confirmed below the cloud, as explained in Chapter 2.
Figure 3.1 Using the Ichimoku Cloud in an Exit Strategy
48
Using the Cloud to Exit 
a Bullish Position
A thick downward cloud can also act as a strong resistance
level when the prices are below the Ichimoku cloud.
When the market has been below the cloud for a while, we
have no choice but to use other points of the IDDA to enter
positions, especially if we are trading using only one time
frame.
In the example in Figure 3.2, the GBP/JPY pair indicated a
long-term bearish signal way before this chart was
captured.
Figure 3.2 Using the Ichimoku Cloud in an Exit Strategy
49
While based on the Ichimoku cloud’s shape and direction
we can conclude that the long-term direction of the
GBP/JPY is to the downside, we still can take advantage of
short-term trading opportunities.
Entering based on a Bullish Engulfing and Fibonacci
retracement support, along with other points of the IDDA,
we could set the lower band of the Ichimoku cloud as a
bullish target to exit our position.
Meanwhile note that our entry point on the daily chart, was
exactly when the pair broke above the Ichimoku cloud on
the 4-hour chart.
Figure 3.3 GBP/JPY Short Time Frame
50
This shows that by using different time frames you can
identify short and long-term entry/ exit points.
This is precisely the reason why we zoom in and out of the
time frame with the IDDA approach, before making a
trading decision.
“
You can set an Ichimoku-based 
entry and an Ichimoku-based 
exit using different time frames.
“
51
Using the Cloud as a Stop-loss
The best method to set a stop-loss is using Fibonacci
retracement levels. It allows you to develop your exit
strategy based on your risk tolerance rather than market
fluctuations, which is a much more responsible method to
trade.
However, sometimes the Ichimoku cloud can help
strengthen your exit strategy.
In Figure 3.4, we saw an Ichimoku-based entry signal on
the NZD/USD 4-hour chart.
Figure 3.4 Using the Ichimoku Cloud in an Exit Strategy
52
Based on our risk-tolerance, we decided to set our bullish
target at the 0.7995 level as opposed to the more
moderate target and 76% Fibonacci retracement level of
0.7235.
Unfortunately, the market changed direction and ultimately
broke below the important Fibonacci levels of 50% and
38%. Not only that, it also broke below a mostly upward-
moving Ichimoku cloud, signaling the direction may have
changed for good in this time frame.
Here are some ideas for using the cloud as a stop-loss:
To• find the stop-loss of a bullish position, wait for a
break below the lower band of an upward moving
cloud. A Fibonacci level below that zone could be set as
your stop-loss.
To• find the stop-loss of a bearish position, wait for a
break above the upper band of a downward moving
cloud. A Fibonacci level above that zone could be set
as your bearish stop-loss.
Be very careful with setting stop-losses as often times, you
may get kicked out pre-maturely. Unless you have solid
reversal confirmation, try to keep your stop-losses loose,
and make sure your margin requirements are moderate
enough to endure a loose stop-loss.
53
USING ICHIMOKU 
ON DIFFERENT 
TIME FRAMES
CHAPTER FOUR
This is the question I get asked the most:
What is the best time frame in which to use Ichimoku
Kynko Hyo?
How do I use it on different time-frames?
In this chapter, we will dig into different time frames and
show you how you can use enter with Ichimoku within
different time frames.
55
THE BIG SECRET
It Works (Almost) the Same on All Time Frames
I really don’t understand who started the rumor that
Ichimoku Kynko Hyo behaves differently on different time
frames.
Just like any other form of technical analysis, Ichimoku
works the same across the board.
Why?
Because the crowd psychology never changes.
Short-term traders’ mood swings are just those of like
long-term traders, only in a shorter time frame.
A day trader changes from bearish to bullish way more
often than a long-term investor. However, the day trader
still has less mood swings than a scalper.
As we see in the Elliot Waves, the markets move because
of investors’ psychology, or crowd psychology.
56
The most basic principle of this theory is that market
movements are based on crowd behavior. The crowd’s
mood swings from optimism to pessimism, and these
changes in sentiment create repetitive patterns.
The market cycles and the waves do not always appear in
a neat, pretty wave. Normally, each wave is made up of
sub-waves, which become more visible as we zoom in
from longer time frames to shorter ones. This pattern can
repeat itself—well, forever!
“
Ichimoku Kynko Hyo works 
almost the same across all time 
frames. However, the amount of 
profit, risk and false alarms
on different time frames varies. 
“
So if you are trading on the 4-hour chart and identify an
Ichimoku-based entry signal, you can go ahead and add it
to your bullish strategy.
However, you need to adjust your profit target and stop-
loss accordingly. If you are trading on a 4-hour chart, your
profit target is much lower than that of the daily chart.
In the following pages, we will look at different Ichimoku
strategies for the USD/CAD pair in the year 2014.
57
Ichimoku on the Monthly Chart
In 2014, the USD/CAD pair finally confirmed above the
Ichimoku cloud on the monthly chart in December.
An ultra-long-term Invest Diva with high risk tolerance, can
target either 1.1955 or 1.2725, expecting to reach target
anywhere between 3 months and a year.
This Invest Diva can set the lower band of the Ichimoku
cloud, which coincides with the 23% Fibonacci level, as the
stop-loss for this position.
Figure 4.1 Ichimoku Bullish Signal on the Monthly Chart
58
Ichimoku on the Daily Chart
In the same year, a moderately long-term Invest Diva
would have identified a bullish Ichimoku signal much
earlier than the ultra-long-term Invest Diva: In July 2014.
This Invest Diva can decide to enter a bullish position right
after the confirmation of the break above the Ichimoku
cloud, at 50% Fibonacci level at 1.0933. Depending on her
risk tolerance, she can target either 1.10 or 1.11, which are
61% and 76% Fibonacci levels respectively, expecting to
reach target anywhere between a week and six months.
Figure 4.2 Ichimoku Bullish Signal on the Daily Chart
59
Ichimoku on the 4-Hour Chart
A medium-term trader could perhaps find more trading signals on
the 4-hour chart … and faster too. On the 4-hour chart, a bullish
Ichimoku signal was triggered on July 12th , 2014.
With this, the bullish targets could be set at either 1.0754 or
1.0790 depending on risk tolerance. Stop-loss is set at 1.0633,
right below the Ichimoku cloud. The medium-term trader could
expect to reach target anywhere between 1 day and three
weeks. Note that, while reaching target is faster on the 4-hour
chart,the amount of pips earned is smaller than those of long-
term Invest Divas.
Figure 4.3 Ichimoku Bullish Signal on the 4-Hour Chart
60
Ichimoku on the 1-Hour Chart
We are now down to one of the shortest time frames in which
the Ichimoku cloud can be used. Here are some key points to
remember when you decide to trade on shorter time frames,
something that can be way more rewarding and way more
risky than the previously discussed time frames.
• You are aiming for a smaller amount of pips. Therefore it
could be tempting to use a higher amount of leverage to
compensate
• There is more opportunity to trade. Therefore there is more
opportunity to make mistakes
• The shorter the time frame, the more important the shape
of the cloud
• A break below a rising, thick Ichimoku cloud could indicate
more drops than a break below a flat or falling cloud
• A break above a falling, thick Ichimoku cloud could
indicate more gains than a break above a flat or rising
cloud.
• Targeting secondary Fibonacci tiers is not recommended
for any short-term trader, regardless of their risk-tolerance
“
Trading shorter time frames exposes 
traders to much higher risk. Buyer 
beware.
“
61
Now back to the example of USD/CAD in mid-2014. As
you can see in figure 4.4, there is a ton of back and forth
above and below the flat Ichimoku cloud, each
representing a trading opportunity.
The break below the flat cloud indicates a short-term
bearish signal targeting the first and closest support.
The break above the flat cloud indicates a short-term
bullish signal targeting the first and closest resistance.
While the market sometimes tests above the key primary
targets, it involves high risk, especially if you are trading on
high leverage.
Figure 4.4 Flat Ichimoku on the 1-Hour Chart
62
However, you might have noticed that there are way more
false breaks on the hourly chart compared with longer time
frames. Our targets slowly upgrade as the Ichimoku cloud
moves towards a specific direction.
But once the pair breaks and confirms above or below the
primary target other than the cloud, we can no longer rely
on Ichimoku cloud signals for entry points on the 1-hour
chart or any shorter time frame.
The cloud at this point acts as a support (in an uptrend)
and resistance (in a downtrend). However, there are other
components of Ichimoku Kinko Hyo that could come to the
rescue!
Figure 4.5 Ichimoku Trading on the 1-Hour Chart
63
Kijun & Tenkan to the Rescue
In shorter time frames, once the cloud has 
expired, we can turn to the Kijun and 
Tenkan lines as entry indication
While I mentioned there is no big difference in Ichimoku
trading on different time frames, perhaps the only
exception is trading on shorter time frames after the cloud
signal expires.
The fact that short-term traders aim for smaller targets,
accelerates the expiration of the Ichimoku cloud. And that
is when the other components of the Ichimoku Kinko Hyo
come into play, specifically the Kijun line (base line) and
the Tenkan line (turn line).
Day trading is all about speed, and that is why the
interactions of the fast and slow moving averages can
sometimes reveal reversals more rapidly than the cloud.
Figure 4.6 shows the USD/CAD pair on the hourly chart,
when the pair has formed a definite trend. A search for a
reversal is in the minds of most short-term traders. While
we have other technical chart patterns indicating a
reversal, the Tenkan and Kijun cross-overs validate a
technical chartist’s observation.
64
On the left side of the chart in Figure 4.6, the USD/CAD
pair is trading in an uptrend. It then hits a resistance level,
and forms a Double Top chart pattern— first bearish
reversal indication.
While the pair remains above the upward moving Ichimoku
cloud, the Tenkan line (black, fast moving average) crosses
below the Kijun line (pink, slow moving average). This is
the second bearish reversal trigger.
Combine that with the bearish engulfing candlestick pattern
right below the Tenkan cross-over and you’ve got yourself
a bearish reversal confirmation. The first bearish target is
the 23% Fibonacci level, which also falls on the lower band
of the Ichimoku cloud.
Figure 4.6 Tenkan & Kijun Lines Crossovers on the 1-Hour Chart
65
Once this trade is executed and we have earned our profit, we
can then move on to the Ichimoku cloud strategy. And the
trading strategy continues to develop on Figure 4.6:
1. The pair breaks below the Ichimoku cloud on the
short time frame. We target the primary support
level by entering a bearish position there.
2. The Ichimoku cloud signal expires. We look for
other signals.
3. The Tenkan once again breaks below the Kijun
line right at the 38% Fibonacci level, indicating
further drops. We can target the next primary
support level at 50% Fibonacci, entering a new
bearish position.
4. Once this trade is executed with profit, there is a
formation of a double bottom chart pattern
indicating a bullish reversal. The Tenkan line
crosses above the Kijun line confirming our new
bullish outlook. The primary target is set at the
upper band of the Ichimoku cloud at 23%
Fibonacci.
5. Once this trade is executed with profit, we now
have a confirmation of a break above the
Ichimoku cloud, giving us a new bullish trading
signal. We can enter that targeting the 23%
Fibonacci in a bullish trade, and make even more
money.
66
6. This can continue forever!!
Now… Before you get too excited and decide to always
trade on the 1-hour chart, remember this: It is much easier
to tell the story of what has already happened in the
market than to actually develop successful trading
strategies.
There is a lot of emotions and market noise involved when
you trade with your own real money, and that is precisely
the reason why even educated traders sometimes stop
being rational and avoid admitting that their analysis went
wrong.
The most crucial practice for short-term traders on high
leverage is exiting a losing trade. Trading on margin won’t
give you the luxury of waiting the market out. And while
almost every market corrects itself in the long run, your
account could be long wiped out if you haven’t calculated
your risk-tolerance and set up stop-losses properly.
Another problem with trading on a shorter time frame is
that you won’t have enough time to consider all the points
of the Invest Diva Diamond, IDDA. And most often or not,
you rely on triggers as opposed to developing a sound
trading strategy.
This is precisely why short-term trading is only
recommended to traders with ULTRA high risk-tolerance
who basically really don’t give a damn about their money.
67
ICHIMOKU-
FIBONACCI 
COMBO
CHAPTER FIVE
What is the relationship between Ichimoku and
Fibonacci? How can you use the Ichimoku- Fibonacci
combo to develop customized strategies based on your
risk tolerance?
This is basically my secret ingredient in strategy
development—combine the Japanese Ichimoku Kynko
Hyo, with the Italian Fibonacci retracement levels, and
you’ll get yourself an international winning fusion.
69
70
Combining Ichimoku with 
Fibonacci after a Downtrend
We know a downtrend is over when the prices bottom-out.
We have learned many bullish reversal patterns in the
Forex Coffee Break with Invest Diva Education Course:
Double Bottom, Saucer Bottom, Head and Shoulders-
Bottom. You name it. And so far in this book, we have
learned how a new trend is confirmed based on Ichimoku
Kynko Hyo.
Once you have gathered enough evidence that the market
is indeed reversing to the upside, that is when you can
turn to Mr. Fibonacci to set targets based on your risk
tolerance.
Step One
Draw a Fibonacci retracement level from the highest high
of the previous downtrend, to the lowest low.
Step Two
Confirm that the Fibonacci retracement levels fall on
previously identified support, pivot, and resistance levels.
Step Three
Set the Fibonacci retracementlevels as your bullish target,
based on your risk tolerance.
http://investdiva.com/education
Tada! You’ve got yourself a winning strategy …
Okay I get it. The final step was a bit vague so let me
elaborate.
Once you have calculated your risk tolerance score (we
dive into this in our Wealth Management Course and
Ichimoku Secrets Course), you can target the below
Fibonacci levels accordingly.
However, you should keep in mind that it is not only your
risk tolerance score which determines your exit strategy.
You should also factor in the amount of leverage you are
using, the overall health of your trading account, and how
well your portfolio is hedged.
• Target the first Fibonacci retracement level if …
 Your risk tolerance score is conservative
 You are planning to use high leverage
 Your trading account is low on usable margin
 You have over five active positions (in Forex trading
only)
71
http://investdiva.com/education
• Target the second Fibonacci retracement level if …
 Your risk tolerance score is moderate
 You are planning to use moderate amount of
leverage
 You have moderate amount of usable margin in
your account
 You have between three to five active positions,
with repeating a currency (Forex only). For
example, if you are bullish on USD in three
different currency pairs, lets say, USD/JPY,
AUD/USD, and USD/CAD, and you are planning
to go long the USD/CHF pair, then you should
aim to take profit and close at least one of these
positions at a moderate Fibonacci retracement
level to avoid high risk.
• Target the third Fibonacci retracement level if …
 Your risk tolerance score is moderately
aggressive
 You are planning to use lower amount of leverage
(between 5 and 2 in Forex)
 Your usable margin is in healthy territory
 You don’t have many active positions in Forex and
are well-diversified in other assets such as stocks
and ETFs.
72
73
Figure 5.1 Fibonacci Retracement Levels After a 
Downtrend Has Reversed
Target• the fourth Fibonacci retracement level if …
Your risk tolerance score is aggressive
You are planning to use a maximum leverage of 2
You have no debt to your broker and your margin
and equity are positive.
You don’t have many active positions in Forex and
are well-diversified in other assets.
In Figure 5.1, the asset has completed a Double Bottom
chart pattern, broken above a falling wedge and the
Tenkan line has broken above the Kijun line. However,
the Chiko span has yet to break above the Ichimoku
cloud, and the prices are facing difficulty breaking above
the cloud as well.
In this case, the upper band of the cloud is acting as a
strong resistance, followed by the 23% Fibonacci
retracement level which in this case is our pivot level on
the daily chart.
A day-trader with low risk tolerance or high leverage
could have considered aiming for the 23% Fibonacci level
before a risk event and got out rapidly.
As risk tolerance score and overall health of the trading
account goes higher, and the amount of leverage goes
lower, the trader could consider aiming for respective
Fibonacci retracement levels AFTER the Ichimoku trigger
is confirmed.
One of my favorite methods is entering the position at a
partial amount, and then adding on to the position as we
gain confidence in our original analysis of the market.
We then can use the respective Fibonacci retracement
levels as stop-loss levels. Basically, the lower the risk
tolerance score, or the higher the amount of leverage, the
tighter your stop-loss should be. If you are not using high
leverage, a stop-loss is not really necessary.
74
Personally I have kissed stop-losses goodbye for the
most part. By keeping my trading account in good health
and keeping my leverage at manageable amount, I buy
more of the asset class once the prices go down instead
of selling short. That way, the brokers who make money
on my losing trades can only dream of getting their hands
on my hard-earned cash.
75
76
You can follow the same exact steps mentioned
previously, once you identify a bullish reversal in the
market.
Keep in mind that this method is most commonly used for
Forex trading, as we typically would want to avoid short
selling other asset classes such as stocks, ETFs, Mutual
Funds and bonds.
Only in Forex you can trade in either direction at equal
amount of risk.
In Figure 5.2, the asset has completed a Double Top chart
pattern, broken below the important 50% Fibonacci
retracement level, while the Tenkan line has broken below
the Kijun line. However, the Chiko span has yet to break
below the Ichimoku cloud. The prices have recently
confirmed a break below the Ichimoku cloud.
Combining Ichimoku with 
Fibonacci after an Uptrend
77
Figure 5.2 Fibonacci Retracement Levels After an 
uptrend Has Reversed
Traders with low, moderate and high risk tolerance could
consider targeting the 61%, 76% and 100% Fibonacci
retracement levels respectively. Again worth mentioning
here is that you should always consider the impact of the
fundamentals on selecting the suitable Fibonacci level
as well.
In forex trading, if a high-risk event is coming up,
your target should be tighter than usual.
When investing in stocks using this method, you
should deeply analyze the future of the company
from a fundamental point of view and determine
whether the recent drop in prices was simply a
pull-back, or the company is going bankrupt/ has
no bright future.
Conversely, if you are a long-term investor in a
longer-term bullish position (say on the monthly
chart) and the market has turned temporarily in a
shorter time-frame as seen in Figure 5.2 (daily
chart), you can consider adding up to your bullish
position at the above Fibonacci retracement levels
to lower your average.
78
CASE STUDIES
CHAPTER SIX
Now that you have learned my Ichimoku secrets, it is time
to look back and see how this technique has worked out
for me and my Invest Diva students.
In this chapter, I will be showcasing real strategies that
have been published on InvestDiva.com, and the results
they delivered.
Following the IDDA approach, we not only analyze the
price action from a technical point of view, but also the
fundamentals and market sentiment to conclude on a
trading strategy according to the trader’s risk tolerance.
80
GBP/JPY Confirms above 
Ichimoku Cloud
This article was published on November 15th, 2016 on
investdiva.com. Starting with technical analysis, we identified an
Ichimoku-based bullish signal, which was backed up by other
technical points as well.
After a long year and a half dancing under the shadow of a
falling cloud, finally GBPJPY confirms above Ichimoku cloud.
Successfully. And by that I mean we have strong technical
verifications of this on at least two different time frames.
However, with all the uncertainty and major economic events
out of the UK this week, do the other points of
the IDDA agree? It's time to find out.
Figure 6.1 GBP/JPY Breaks above the Ichimoku Cloud 81
http://investdiva.com/invest-guide?slug=gbpjpy-confirms-above-ichimoku-british-pound
Technical Analysis
Daily Chart: It's been a hard year for Mr. British Pound
and Brexit added to his pressure. As the Japanese yen got
stronger, acting as a safe haven on global uncertainty,
GBP did the opposite. The GBP/JPY officially broke below
the Ichimoku cloud on the daily chart in December 2015
and since then saw nothing but down ... until it hit the
support of 125.
While this pair doesn't include the US dollar, the US
election results did have an indirect impact on it. The
Japanese yen got weaker across the board, and that is
when we saw the first big push towards the Ichimoku cloud
on November 9th. The pair broke above the pivot of
129.50. The next day it broke above the upper band of a
symmetrical triangle. After that it broke above the Ichimoku
cloud. And on Monday November 14th, it
officially confirmed the break.
However,even though we have a number of concrete
bullish signals just on the daily chart, the only downside to
this is that there is a very good chance that this is
a FALSE BREAK. GBP/JPY has done it before. There is
no reason it won't do it this time.
That is why we need the pair to break above the long-term
23% Fibonacci retracement level at 140.15 before we
conclude a long-term reversal.
Monthly Chart: Here is where things get interesting. On
the monthly chart, as seen in Figure 5.2, we have yet
another huuuuge bullish signal as the pair formed a bullish
engulfing candlestick pattern.
82
https://education.investdiva.com/forex-coffee-break-with-invest-diva-education-coursew0js78v1
https://education.investdiva.com/forex-coffee-break-with-invest-diva-education-coursew0js78v1
https://education.investdiva.com/forex-coffee-break-with-invest-diva-education-coursew0js78v1
https://education.investdiva.com/forex-coffee-break-with-invest-diva-education-coursew0js78v1
Fundamentals
What went down: The fundamentals aren't as positive
for Mr. Pound as the technicals. It is quite mixed so far
actually.
Even though the pair still hasn't completed the cycle
back to the lows of 2012, this could be a sign that
the pair might have decided to end the cycle a bit
early (which is completely understandable in the
Forex world) and reverse the direction, especially
considering the fact that this very thing happened in
2009, at the EXACT same level.
Figure 6.2 GBP/JPY Forms Bullish Engulfing on Monthly Chart
83
First and foremost, UK CPI missed expectations on
Tuesday. However, Bank of England (BOE)
governor Carney said that the central bank now has a
neutral stance on
monetary policy, and that it is not actively considering
expanding its QE program. This is good news for Mr.
British Pound.
On the other hand, and as the world seems to be get cues
from leaked material, we have leaked memos regarding
Brexit that may also impact Mr. British Pound. According to
a November 7 th memo obtained and then leaked by The
Times and republished by Reuters, Theresa May’s
government is divided on Brexit. And because of the said
division, “no common strategy has emerged” in how to
approach Brexit negotiations.
If the rumors are true and we have at least 6 months for
Brexit to finalize, or maybe even two years, the GBP
crosses could take a break from the pressure and move
up a bit. However, a spokesman for Theresa May has said
that the leaked memo, “has no authority.” I guess only time
will tell on this one, eh?
What's up next: During the London session on
Wednesday, the UK Jobless Claims Change (OCT) will be
out at 9:30 AM GMT. The claimant count change, which
measures the difference in the number of people claiming
unemployment benefits from one month to the next, is
expected to show a 1.9K rise in joblessness for October.
The unemployment rate is expected to hold steady at
4.9%.
84
On Thursday, UK Retail Sales (MoM) (OCT) will be out at
9:30 AM GMT. It is expected to show a 0.5% increase in
consumer spending. A stronger than expected reading
could be enough to assure Invest Divas that the Brits are
keeping calm and carrying on with their purchases, which
could be enough to to give us a fundamental thumbs up on
our bullish scenario for GBP/JPY.
Market Sentiment
According to one of the largest Forex brokers in the US,
46% of traders were bullish on GBP/JPY on
Tuesday. Long positions are 2.5% lower than Monday and
22.3% below levels seen last week. We use this as
a contrarian indicator to price action, and the fact that the
majority of traders are short gives signal that the GBPJPY
may continue higher. The trading crowd has grown further
net-short from yesterday but is unchanged since last week.
The combination of current sentiment and recent changes
gives a further bullish trading bias.
Trading Strategy
Putting the technical, fundamental and sentimental points
of the IDDA approach together, the medium-term bullish
strategy seems to have a reasonable risk-reward ratio.
Bullish Scenario:
Depending on your risk tolerance, you could consider
targeting 140.15 as this week's UK fundamental volatility
unfolds.
A break above this level could open doors for further gains
towards 38% Fibonacci level at 149.
85
http://investdiva.com/
https://education.investdiva.com/forex-coffee-break-with-invest-diva-education-coursew0js78v1
https://education.investdiva.com/forex-coffee-break-with-invest-diva-education-coursew0js78v1
Bearish Scenario:
A break back below the Ichimoku cloud would change our
outlook back to bearish with 125 as first alternative target.
86
GBP/JPY Trading Result, November 23, 2016
At the time of writing this book, the pair reached our first
bullish target to the final digit on November 23rd 2016,
within less than 6 trading days.
Since you are reading this book after this date (unless you
are a time traveler), it is now your turn to check your
GBP/JPY chart and check how our long-term strategy
panned out.
How would you have traded the GBP/JPY? How long
would you stay in the trade?
Figure 6.3 GBP/JPY Reaches Target at 140 on November 23rd
87
NZD/JPY Confirms above Ichimoku 
Cloud and Triangle Chart Pattern
This article was published on October 19th, 2016 on
investdiva.com.
After the third and last presidential debate in the US,
NZDJPY confirms above Ichimoku cloud while USD/JPY
heads back towards it. How can we put the politics and
crowd psychology together to develop a winning trading
strategy? Let's take an IDDA approach to find out.
Technical Analysis
Figure 6.4 NZD/JPY Breaks above Ichimoku Cloud
88
http://investdiva.com/invest-guide?slug=nzdjpy-confirms-above-ichimoku-cloud-triangle
Medium Time Frame
The NZD/JPY pair broke above the Ichimoku cloud and
above a triangle chart pattern on the daily chart on
Wednesday. This could signal further bullish moves
towards a medium-term target of 75.75— the 50%
Fibonacci retracement level and an important resistance.
The pivots remain on the Ichimoku cloud and 73.45 and
72.50, as we have discussed in our Facebook group.
Long Time Frame
On the monthly chart, NZDJPY remains inside a thick,
upward-moving cloud, indicating a long-term consolidation.
Fundamentals
While we are looking at New Zealand and Japanese
currencies, it is important to remember that a downward
pressure on the US dollar could sometimes impact the
Japanese yen.
The main driver behind the NZDJPY gains was
Monday's Consumer Price Index out of New Zealand,
which came in at 0.2%, better than the expected 0.1%.
However, it was down from a previous 0.4%; this could
indicate that the NZD gains may be short-lived from a
fundamental point of view.
Japan's All Industry Activity Index came in lower than
August, yet another force behind short-term JPY
weakness.
Coming up…
89
https://education.investdiva.com/join-premium-closed-facebook-group10370581
Friday: During the Asian session, New Zealand releases
their Credit Card Spending.
Market Sentiment
The majority of the New Zealand dollar traders (almost
39%) currently are shorting it. As a contrarian trader, you
may consider this as a short-term bullish signal.
Trading Strategy
Considering all points of the IDDA, we can conclude on a
short-term strategy as opposed to a long or medium-term
strategy.
Depending on your risk tolerance, you could consider a
short-term bullish position on the NZD/JPY.
Bullish Scenario
Aggressive to moderately aggressive traders can enter a
position now, targeting 75.75 and 80 in extension.
Stop-loss can be set at 73.45 for those with lower risk
tolerance.
Bearish Scenario
A break back below the Ichimoku cloud on the daily chart
would change our outlook back to bearish, with 73.45 as
first alternative target.
90
NZD/JPY Bullish Testing Continues
This article was published on November 1st, 2016 as a
follow-up to the previous strategy on investdiva.com.
Happy November, Invest Divas! Mr. Kiwi is havinga good
start to the month with NZDJPY testing above the triangle
pattern we identified months ago. But should we be all be
excited or is there some barrier preventing Mr. Kiwi from
jumping higher? Let's take an IDDA approach to find out.
Technical Analysis
Figure 6.5 NZD/JPY Confirms Breaks above Ichimoku Cloud
91
http://investdiva.com/invest-guide?slug=nzdjpy-testing-above-triangle-november
Medium Time Frame
The NZD/JPY pair broke above an upward
moving Ichimoku cloud on October 26 th, and has been
continuing above a very thin and flat cloud ever since. We
have been eyeing 75.75, as we have discussed in
our Facebook group. However, the pair is still trapped
inside a new triangle pattern. The good news is that on the
first trading day of the month, the pair is already attempting
to break above it and opened above a median pivot level of
74.75.
This could signal further bullish moves towards a medium-
term target of 75.75— the 50% Fibonacci retracement level
and an important resistance.
The pivots remain on the Ichimoku cloud and 73.45 and
72.50.
Long Time Frame
On the monthly chart, NZDJPY remains inside a thick,
upward-moving cloud, indicating a long-term consolidation.
The brand new candle for November seems to be trying to
move up and away from the solid consolidation.
The Ichimoku cloud itself is moving upward; however, its
lower band is acting as a solid support.
92
Fundamentals
Japan Side: The Bank of Japan (BOJ) decided to maintain
the short-term negative interest rate at -0.10% earlier
during the Asian session today. They will be carrying on
with the current pace of JGB purchases so holdings can
increase at an annual pace of 80 trillion JPY.
However, the policymakers of the Land of the Rising Sun
admitted that risks to economic growth and inflation are a
bit on the downside, particularly when it comes to export
activity and output. They mentioned that there’s still some
momentum in price levels but that it weakened recently,
adding that inflation could rise towards 2% in the second
half of 2018.
Figure 6.6 NZD/JPY Inside Thick Ichimoku Cloud on Monthly Chart
93
Still, BOJ folks agreed to keep very close tabs on price
developments in the coming months. They will continue to
implement QQE until the economy achieves its 2%
inflation target.
Also, BOJ officials warned that lower confidence in fiscal
stability could cause the Japanese economy to perform
weaker than expected. All to create a weaker outlook on
Mr. Japanese Yen.
New Zealand Side: Later today (which is November 2 nd
in the Land Down Under), at 9:45 PM GMT, a hefty
quarterly jobs report will be released out of New Zealand.
In last quarter (Q2), net employment in New Zealand
increased by 2.4%. That was a lot better than the
expected 0.6% increase.
In the Q3 jobs report today, employment in New Zealand
is expected to increase by 0.6%, which is obviously slower
than the previous quarter’s 2.4% increase. With this a
lower-than-expected outcome could take a hit on Mr.
Kiwi's joyous up-moves.
94
NZD/JPY Trading Result, November 23, 2016
At the time of writing this book, the pair has so far reached
two of our targets and is currently reaching for the third at
38% Fibonacci level at 80. Pivot is set at 78 while new
support level is at 50% Fibonacci at 75.75.
It is now your turn to check your NZD/JPY chart and
find out how the rest of our strategy panned out.
Is Ichimoku worth a shot?
Figure 6.7 NZD/JPY Reaches 2 Targets, Reaching for Third 
95
USD/JPY Confirms above Ichimoku 
Cloud – Yellen to Speak Friday
This article was published on October 12th 2016, on
investdiva.com, as a follow-up to previously spotted bullish
reversal signal published on October 4th, titled “USD/JPY
Enters Ichimoku Cloud For the First Time in Four Months.”
Hallelujah! Am I only dreaming or is this real? USDJPY
confirmed above Ichimoku cloud for the first time in a
whopping 10 months this week. Now all we need is another
signal to fully change our outlook to bullish. “And what is
that?” you ask. Read on, my beautiful diva.
Figure 6.8 USD/JPY Confirms Breaks above Ichimoku Cloud
96
http://investdiva.com/invest-guide?slug=usdjpy-confirmed-above-ichimoku-cloud-yellen
http://investdiva.com/invest-guide?slug=usdjpy-enters-ichimoku-cloud-first-time-months
Technical Analysis
The Dollar Gods have spoken and Ms. USA is gaining
back her momentum on the Forex dance floor. The
USD/JPY pair is officially above the Ichimoku cloud and
above the pivot level of 103.50, stretching towards the
next pivot of 23% Fibonacci at 105.25 during the
Thursday’s early Sydney session.
The US dollar strength on Wednesday was specifically
due to FOMC minutes, which showed the Fed may be up
for a rate hike relatively soon. A break above the 23%
Fibonacci could indicate further gains towards resistance
of 108.70.
A shocking risk event out of the US to turn the pair back
below the Ichimoku cloud would change our outlook back
to bearish. Support is remaining strong at 100.
Trading Strategy
With growth in US economic data, anticipations of a 2016
rate hike, and the October effect, the USD/JPY pair has
finally confirmed above the Ichimoku cloud. This already is
good news for the USD bulls. However, we have one more
barrier to break above: the 23% Fibonacci level.
97
Bullish Scenario: If you have been following my
signals and have high risk tolerance, you probably are
already in a bullish trade for USD/JPY targeting 105.
For those with lower risk tolerance, we need yet another
confirmation signal by break above 105.25. So yeah ...
stay tuned, my love!
Bearish Scenario: We could certainly see a temporary
pullback at around 105, which could be a pip-making
chance for short-term traders.
However, for us to change our outlook to long-term bearish
again, we need the pair to go nuts and move back down
below the Ichimoku cloud.
Only a break below 100 could open doors to new 2016
lows.
98
https://education.investdiva.com/join-premium-closed-facebook-group
USD/JPY Trading Result, November 23, 2016
After a bunch of follow-ups with the Invest Diva community,
at the time of writing this book, the pair has reached above
and beyond our expectations. As one of Invest Diva
students puts it, USD/JPY has turned into, “the gift that
keeps on giving.”
One last time, it is now your turn to check your
USD/JPY chart and see how the rest of our strategy
panned out.
Figure 6.9 USD/JPY Reaches 3 Targets, Reaching for Fourth 
99
It’s Time for You to Use Ichimoku Secrets
So that’s our Ichimoku Secrets combined with Fibonacci
levels to develop strategies based on your risk tolerance.
Now it’s your turn. The Ichimoku secrets have been
proven thousands of times over. All of my personal
success has been built by doing exactly what I taught you
in this book.
As you may have noticed, I personally use the Ichimoku
indicator mostly on the daily chart as a medium to long-
term strategy development assistant.
In the case studies I show-cased some of our success
stories. I encourage you to go through our other strategies
on investdiva.com throughout the years and see for
yourself the outcomes of following the Ichimoku indicator.
Obviously, there are some cases where the Ichimoku
indicator created a false signal, which resulted in losses.
In our Ichimoku Secrets online video course, I have
covered many more case studies—including my losing
trades and the reasons behind the losses—while
exhibiting more details about Ichimoku that are only
possible to communicate in video format.
100
Additionally, I have added a bonus risk-management
section, which is based on my lectures at Baruch College,
to help you calculate your risk-tolerance and therefore
identify the best Fibonacci retracement levels for you.
Follow along with the course and other Invest Diva
education services. Plug into the Invest Diva community.
And then write to me and tell me about your success story.You can reach me at kiana@investdiva.com
Links and Resources
Your free membership to Invest Diva: www.investdiva.com
More Invest Diva resources: 
http://investdiva.com/education
My trading insights: http://investdiva.com/must-reads
101
mailto:kiana@investdiva.com
http://www.investdiva.com/
http://investdiva.com/education
http://investdiva.com/must-reads
About the Author
Born and raised in Iran as a religious minority, Kiana was
awarded a scholarship from the Japanese government to
study electrical engineering in Japan, where she faced a
new challenge of being the only girl and only foreigner in
her class. This is precisely when she knew she wanted to
dedicate her life to empowering minorities, especially
women in male dominated industries, such as finance and
technology.
During her 7 years in Japan, she became recognized as an
outspoken “foreign” woman, and became a lecturer on
political/ social issues in universities around Japan. She
was later assigned a seat on a Japanese National TV (NHK)
talk show as a commentator on international and
domestic issues, on which she appeared regularly for two
years. These activities gained her widespread recognition
and as a result she won a number of key awards (see
below).
After graduating from Tokyo University of Electro
Communications with honors, Kiana worked as an analyst
at a consulting company, taking over clients such as Coca-
Cola and Toyota in Japan. However, having found her
true passion in finance, she rapidly decided to move to
New York to pursue her dream, and started working at
the largest currency broker in the US in 2010. She soon
discovered that there was a significant lack of education
in the field of investing as well as a significant lack of
women in the industry, which was something she was
eager to change. So Kiana decided to leave her job and
start an investing education company for women in May
2012.
102
As part of this transition, Kiana started writing an
educational blog, which was discovered by McGraw-Hill
Business, who in turn offered her a book publishing deal in
August 2012. Her first book, Invest Diva’s Guide to Making
Money in Forex was published in June 2013, and has been
featured on CNN, TIME magazine, Forbes, ABC News, Market
Watch, FX Street, Nasdaq, and the NYSE.
Fluent in Japanese, English and Farsi, Kiana has collaborated
with international and domestic companies such as NASDAQ
(NY), Forbes magazine, Forex TV (NY), SHIFT (NY), Orbex
(Cyprus), Platinum Investments (UK), Scuttify (Australia),
Trading Central (Singapore), Capital Index (UK), AutoChartist
(South Africa), BFSForex (China), Tokyo-MX TV, Aonorshe
School (Japan) and FX-ON (Japan) on consulting, education
and various media projects.
Kiana is also an Adjunct Professor of Finance at Baruch
College, teaching an advanced wealth management course.
She has been recognized with the following awards:
• Education Tools Best in Class – 2016 (Benzinga Fintech
Awards)
• New York Business Journal Women of Influence
Honoree – 2016
• Best Financial Education Media Provider – 2014
(Shanghai Forex Expo)
• Best Commentator on a Japanese Social Issues
Program, Generation Y– 2008 -2010 (Japanese National TV,
NHK)
103
Giving Back
Kiana is extremely active and passionate about
empowering women to help them unlock their potential
and help them realize that they can make a positive
impact on the world around them. Some specific
examples of her leadership include:
She is a member of the Women’s Leadership Council,
whose role is to planning and holding women
empowerment events, conducting investment education
lectures, and increase their number of members of the
community.
She is an avid and award winning participant in pro bono
activities, aiding refugee asylum seekers. She is also a
volunteer reporter on Middle Eastern political issues.
Kiana is recognized as a unique icon within the Persian
Jewish community in Great Neck, NY. In this community,
girls are traditionally taught to avoid going after their
dreams, career or social life, because, according to the
tradition, “these activities decrease the chances of them
getting married within the community, and labels them
as an unsuitable marriage candidate for Persian Jewish
men.” Getting married has been set as the primary goal
for these women. Men typically have the upper hand and
are intimidated by powerful women. Kiana herself was
severely criticized for living in alone Japan, and for
starting up a company in New York, things that “good
Persian Jewish girls are not supposed to do.” She was
subject to a large amount of gossip, being told that she
doesn’t belong to the community because of her
activities.
104
After overcoming these challenges and establishing
herself as a successful entrepreneur and author, she has
been able to open the minds of the community, who now
avidly seek her advice and empowerment. She has held
numerous women empowerment events within the
community, encouraging women to take control of their
finances, life and education.
She has been recognized with the following award:
Pro Bono Humanitarian Award – 2013 (IABA, Iranian-
American Bar Association)
Kiana believes in the concept of “paying it forward” and,
combined with her desire to help women and other
minorities succeed, has a proven track record as a
mentor. She has developed a Facebook community
group to help empower women on a higher level and is a
top mentor at Baruch College and Invest Diva.
105
Let’s talk. Visit us:
The Japanese Way to Trading Success
Whether you’ve already started trading, or you’re itching to start, this is a 
recipe for making more profit, more often. What if you could develop 
winning strategies all by yourself? What if you were the first to spot a 
trend-change in the market? What if you were able to calculate the exact 
target levels and aim for them based on your portfolio and risk tolerance? 
This book will help you build your strategy development skills—fast.
InvestDiva @InvestDiva @KianaDanial
KIANA DANIAL has been creating successful trading strategies since she 
was an electrical engineering student in Japan. After doubling her initial 
investment during the 2008 market crash, by trading the Japanese Yen 
against the US dollar with the help of a Japanese trader, she rapidly 
moved to New York to pursue a career on Wall Street. 
She then launched her investing education website, INVEST DIVA, and 
received an offer to publish her first investment book by McGraw-Hill. But 
the success-train was just getting started ̶̶ once she started teaching her 
new formula to other traders, the results were simply breathtaking. 
Now the question is … are YOU ready to learn the Ichimoku secrets and 
develop winning strategies?
“Kiana has done a tremendous job of simplifying a powerful yet
commonly misunderstood indicator. Intermediate to experienced
traders will find this book of great value if they are looking to
adjust their medium to long term strategies to fit specific risk
tolerances.”
– Ilan Azbel, CEO at AutoChartist