STA Cloud Charts9703

Society of Technical Analysts - Tuesday 13th April 2010

Cloud ChartsDavid Linton MFTA


Cloud Chart History

1750s Munehisa Homma - Candlesticks

1880s Charles Dow Dow theory

1930s Goichi Hosoda Ichimoku development

1940s Edwards and Magee

1960s Hosoda publishes book on Ichimoku

1980s IFTA East meets West (Murphy)

1990s Hidenobu Sasaki publishes book

2000s IFTA Conference Madrid Rick Bensignor


Cloud elements

Chart 1-2


Cloud elements

Chart 8-1


Cloud Charts add value

1. History

2. Basics of Technical Analysis

3. Moving Averages

4. Indicators

5. Point and Figure Charts

6. Candlestick Charts

7. Using Stop-losses


Dow Theory still rules

Chart 2-1


Which Moving Average?

Chart 3-2


Overbought versus Oversold

Chart 4-10


How many indicators are there?

Chart 4-19


Nothing can replace P&F

Chart 5-17


Candles and Clouds

Chart 6-9


Stop-losses & Money Management

Chart 7-11


Line Construction

Chart 8-3


Cloud Chart elements

1. Turning Line (conversion line) 9 bar midpoint

2. Standard Line (base line) 26 bar midpoint

3. Cloud Span A (Span 1) midpoints of lines 1&2, shifted forward 26 bars

4. Cloud Span B (Span 2) 52 bar midpoint, shifted forward 26 bars

5. Lagging Line (lagging span) price shifted back 26 bars


Lines 1&2 v Moving Averages

Chart 8-6


Cloud Span A

Chart 8-7


Cloud Span B

Chart 8-8


Cloud Spans v Moving Averages

Chart 8-9 *


Lagging Line

Chart 8-12


Lagging Line and Cloud Span B

Chart 8-13


Interpreting Cloud Charts

Chart 9-1


Price interacting with Cloud

Chart 9-3


Bullish and Bearish Zones

Chart 9-4


Trend change

Chart 9-5


Cloud Thickness

Chart 9-8


Lagging Line and the Cloud

Chart 9-11


Lagging Line and Whipsaws

Chart 9-12


Later but Safer

Chart 9-14


Dealing with temporary breaches

Chart 9-15


Turning and Standard Lines

Chart 9-20


Clouds are our Roadmap

Chart 9-22


Cloud Charts in Sideways markets

Chart 9-23


Why do Cloud Charts work?

Figure 9-1


Uptrend or Downtrend?

Chart 10-3


Multiple Time Frame Analysis

Figure 10-2


Whats your Time Horizon?

Figure 10-3 *


Japanese Pattern Techniques

Figure 11-1


Patterns combined

Figure 11-2


Pattern Targets

Figure 11-3


Price and Time projection

Chart 11-7


Changing time frames

Chart 11-8


Intra-day charts

Chart 11-9


Can you Optimise 9, 26 and 52?

Chart 13-2


Extending the Cloud

Chart 13-5


Cloud Width

Chart 13-8


Distance from Lagging Line

Chart 13-17


Have you Back-tested it?

Chart 14-2


Using a Signal Delay

Chart 14-5


Optimising for the shorter term

Chart 14-9


Taking the longer term into account

Chart 14-10


Signal delay and weekly cloud filter

Chart 14-11


Cloud (LL) Bullish Percent

Chart 15-7


Cloud BPC price and lagging line

Chart 15-8


Scanning for cloud crosses

Appendix 1


Backtest Results

S&P 500 stocks 5 years index down 7.5%

Using a signal delay 0-5 days

33% profit overall 60% of stocks profitable

Taking the trend into account and a signal delay

79% profit overall 86% of stocks profitable


Cloud Charts are a work in progress visit:

www.cloudcharts.com

David Linton MFTA

STA Cloud Charts9703

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