Cronex Taichi Indicator

Another version of the Cronex indication that works with Tenkan, Kijun, and Senkou (Ichimoku) is the Cronex Taichi indicator. The indicator displays as a simple cloud indication with signal lines in the main chart pane. Cronex Taichi can be used in a variety of ways.

What is the Cronex Taichi Indicator?

Cronex Taichi Indicator is an Ichimoku Kinko Hyo trading system modification. This indicator assists traders in detecting numerous trading opportunities that can be difficult to notice at times. Cronex Taichi Indicator looks similar to Ichimoku Kinko Hyo, with the exception of the cloud.

This indicator is made up of four lines:

  • Taichi Line (Grey Line) – The Taichi Line is the weighted moving average of the Kijun, Tenkan, Span A, and Span B values.
  • TaichiFor (Orange line) – This is the weighted average of Span A and Span B with a Kijun shift.
  • Signal Line 1 (Red line) – This is the Kijun moving average.
  • Signal line 2 (Lime-colored line) – The moving average of the Senkou is represented by signal line 2.
Setting up the Cronex Taichi Indicator
Setting up the Cronex Taichi Indicator

Cronex Taichi Strategy

The Cronex Taichi’s default settings are 9 for Tenkan, 26 Kjun, and 52 Senkou Values. These values are plotted in various ways, but they are all drawn from the Ichimoku Trading System. The current market price ought to be higher than the Taichi line for a bullish trade, the Taichi Value should be greater than the TaichiFor, and the signal should be higher than the Signal value, which is the trigger indication for starting a buy order. A bearish trade, on the other hand, requires that the current market price be less than the Taichi line, that the Taichi value be less than TaichiFor, and that the signal be less than the Signal value, which is the trigger indication for starting a sell trade.

Buy Signal

The following could be your checklist for a buy trade:

  • When price is above the Taichi line.
  • When the Taichi Value is higher than the TaichiFor.
  • When the Signal line 1 is above the Signal line 2.

Once these events occur:

  • You could open a buy position after you confirm your entry with bullish candlestick patterns.
  • You could set your stop loss just below the nearest swing low.
  • You could set your take profit at the nearest resistance zone, or you could exit trade when price falls below the Taichi line.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
Cronex Taichi Indicator Buy Setup
Cronex Taichi Indicator Buy Setup

Sell Signal

The following could be your checklist for a sell trade:

  • When price is below the Taichi line.
  • When the Taichi Value is lower than the TaichiFor.
  • When the Signal line 1 is below the Signal line 2.

Once these events occur:

  • You could open a sell position after you confirm your entry with bearish candlestick patterns.
  • You could set your stop loss just above the nearest swing high.
  • You could set your take profit at the nearest support zone, or you could exit trade when price rises above the Taichi line.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
Cronex Taichi Indicator Sell Setup
Cronex Taichi Indicator Sell Setup

Cronex Taichi Pros & Cons

Pros

  • Cronex Taichi Indicator can assist traders in identifying potential support and resistance zones.
  • This Indicator may be used with any forex trading system or strategy to confirm trading entry or exits.

Cons

  • Cronex Taichi Indicator may not be very suitable for narrow-ranging markets on smaller timeframes.
  • The indicator may sometimes give false signals with respect to trend reversals.

Conclusion

Cronex Taichi is a nice technical indicator which users can customize to suit their trading strategy. When the TaichiFor in the market is flat, it indicates that the current trend is flat, and traders could exercise caution when trading signals. Traders can look for the slope of the indicator to predict whether the trend will be bullish or bearish. Cronex Taichi may assist traders in staying ahead of the market. You may want to pair this indicator with other reputable indicators in the market. Cronex Taichi Indicator can be used alone, but it may work better when combined with Ichimoku Kinko Hyo. Because the calculations of both of these indicators are nearly identical, they can generate clear trading signals. However, this indicator does not guarantee profits and can generate false signals.

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