Society of Technical Analysts - Tuesday 13

th
April 2010
Cloud Charts
David Linton MFTA
Society of Technical Analysts - Tuesday 13
th
April 2010
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
Society of Technical Analysts - Tuesday 13
th
April 2010
Cloud elements
Chart 1-2
Society of Technical Analysts - Tuesday 13
th
April 2010
Cloud elements
Chart 8-1
Society of Technical Analysts - Tuesday 13
th
April 2010
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
Society of Technical Analysts - Tuesday 13
th
April 2010
Dow Theory still rules
Chart 2-1
Society of Technical Analysts - Tuesday 13
th
April 2010
Which Moving Average?
Chart 3-2
Society of Technical Analysts - Tuesday 13
th
April 2010
Overbought versus Oversold
Chart 4-10
Society of Technical Analysts - Tuesday 13
th
April 2010
How many indicators are there?
Chart 4-19
Society of Technical Analysts - Tuesday 13
th
April 2010
Nothing can replace P&F
Chart 5-17
Society of Technical Analysts - Tuesday 13
th
April 2010
Candles and Clouds
Chart 6-9
Society of Technical Analysts - Tuesday 13
th
April 2010
Stop-losses & Money Management
Chart 7-11
Society of Technical Analysts - Tuesday 13
th
April 2010
Line Construction
Chart 8-3
Society of Technical Analysts - Tuesday 13
th
April 2010
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
Society of Technical Analysts - Tuesday 13
th
April 2010
Lines 1&2 v Moving Averages
Chart 8-6
Society of Technical Analysts - Tuesday 13
th
April 2010
Cloud Span A
Chart 8-7
Society of Technical Analysts - Tuesday 13
th
April 2010
Cloud Span B
Chart 8-8
Society of Technical Analysts - Tuesday 13
th
April 2010
Cloud Spans v Moving Averages
Chart 8-9
*
Society of Technical Analysts - Tuesday 13
th
April 2010
Lagging Line
Chart 8-12
Society of Technical Analysts - Tuesday 13
th
April 2010
Lagging Line and Cloud Span B
Chart 8-13
Society of Technical Analysts - Tuesday 13
th
April 2010
Interpreting Cloud Charts
Chart 9-1
Society of Technical Analysts - Tuesday 13
th
April 2010
Price interacting with Cloud
Chart 9-3
Society of Technical Analysts - Tuesday 13
th
April 2010
Bullish and Bearish Zones
Chart 9-4
Society of Technical Analysts - Tuesday 13
th
April 2010
Trend change
Chart 9-5
Society of Technical Analysts - Tuesday 13
th
April 2010
Cloud Thickness
Chart 9-8
Society of Technical Analysts - Tuesday 13
th
April 2010
Lagging Line and the Cloud
Chart 9-11
Society of Technical Analysts - Tuesday 13
th
April 2010
Lagging Line and Whipsaws
Chart 9-12
Society of Technical Analysts - Tuesday 13
th
April 2010
Later but Safer
Chart 9-14
Society of Technical Analysts - Tuesday 13
th
April 2010
Dealing with temporary breaches
Chart 9-15
Society of Technical Analysts - Tuesday 13
th
April 2010
Turning and Standard Lines
Chart 9-20
Society of Technical Analysts - Tuesday 13
th
April 2010
Clouds are our Roadmap
Chart 9-22
Society of Technical Analysts - Tuesday 13
th
April 2010
Cloud Charts in Sideways markets
Chart 9-23
Society of Technical Analysts - Tuesday 13
th
April 2010
Why do Cloud Charts work?
Figure 9-1
Society of Technical Analysts - Tuesday 13
th
April 2010
Uptrend or Downtrend?
Chart 10-3
Society of Technical Analysts - Tuesday 13
th
April 2010
Multiple Time Frame Analysis
Figure 10-2
Society of Technical Analysts - Tuesday 13
th
April 2010
Whats your Time Horizon?
Figure 10-3
*
Society of Technical Analysts - Tuesday 13
th
April 2010
Japanese Pattern Techniques
Figure 11-1
Society of Technical Analysts - Tuesday 13
th
April 2010
Patterns combined
Figure 11-2
Society of Technical Analysts - Tuesday 13
th
April 2010
Pattern Targets
Figure 11-3
Society of Technical Analysts - Tuesday 13
th
April 2010
Price and Time projection
Chart 11-7
Society of Technical Analysts - Tuesday 13
th
April 2010
Changing time frames
Chart 11-8
Society of Technical Analysts - Tuesday 13
th
April 2010
Intra-day charts
Chart 11-9
Society of Technical Analysts - Tuesday 13
th
April 2010
Can you Optimise 9, 26 and 52?
Chart 13-2
Society of Technical Analysts - Tuesday 13
th
April 2010
Extending the Cloud
Chart 13-5
Society of Technical Analysts - Tuesday 13
th
April 2010
Cloud Width
Chart 13-8
Society of Technical Analysts - Tuesday 13
th
April 2010
Distance from Lagging Line
Chart 13-17
Society of Technical Analysts - Tuesday 13
th
April 2010
Have you Back-tested it?
Chart 14-2
Society of Technical Analysts - Tuesday 13
th
April 2010
Using a Signal Delay
Chart 14-5
Society of Technical Analysts - Tuesday 13
th
April 2010
Optimising for the shorter term
Chart 14-9
Society of Technical Analysts - Tuesday 13
th
April 2010
Taking the longer term into account
Chart 14-10
Society of Technical Analysts - Tuesday 13
th
April 2010
Signal delay and weekly cloud filter
Chart 14-11
Society of Technical Analysts - Tuesday 13
th
April 2010
Cloud (LL) Bullish Percent
Chart 15-7
Society of Technical Analysts - Tuesday 13
th
April 2010
Cloud BPC price and lagging line
Chart 15-8
Society of Technical Analysts - Tuesday 13
th
April 2010
Scanning for cloud crosses
Appendix 1
Society of Technical Analysts - Tuesday 13
th
April 2010
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
Society of Technical Analysts - Tuesday 13
th
April 2010
Cloud Charts are a work in
progress visit:
www.cloudcharts.com
David Linton MFTA