38 of 40 people found the following review helpful
on September 6, 2010
David Linton's Cloud Charts provides a good introduction for new traders seeking to learn more about Ichimoku (or Cloud Charts).
It is divided into 3 sections with a total of 16 chapters.
The first section (comprising of 7 chapters) deals with general Technical Analysis
The second section (comprising of 5 chapters) introduces the reader to Ichimoku
The last section (comprising of 3 chapters) discuss more about Advanced Cloud Chart Techniques.
For the experienced traders, it is possible to skip the first 7 chapters and head straight to the second section where it introduces the Ichimoku indicators, the constructions of the chart and the various signals for trading.
In my opinion, the author (David Linton) is able to depicts pretty clearly on the construction of the charts; how various Ichimoku indicators are constructed and how it is represented on Ichimoku.
As a trader, there are times where we choose to neglect the construction of the indicators. On hindsight, I am glad that the chapters reinforce my understanding of the charts and its possible implications when I am looking for support/resistance and the possible change in trend.
One important aspect of Ichimoku charts is the use of colours to differentiate different 'moving averages' and the change in cloud direction (or kumo twist). The book did not fall short in this area with all the charts in colour.
I believe this is an important part of Ichimoku. If the charts are in black and white, it would have fall short on the visual display and its ability to explain Ichimoku easily.
This book is not without negatives.
Like the book from Nicole Elliot, I find that it falls short in its explanation of 'wave', and 'timeframe' analysis.
In the chapter, Japanese Patterns Techniques, there are a few references to Hidenobu Sasaki's book. However, it is not able to go beyond that and highlight how a trader can benefit from it.
In the last section, the author attempts to mix Ichimoku with other indicators. It could have been improved by providing more in-depth examples and walking the reader through how a trade is executed. For example, a more detailed discussion on the setup of the trade and how at trader will anticipate the trade as it breakout while observing its interaction with other indicators will be more useful.
For traders new to Ichimoku, this book will be a good introduction. However, I do not think it will be the 'definitive' guide.
25 of 26 people found the following review helpful
on December 26, 2011
I really hate to give this book a three star rating, as the author did a number of things trying to create an excellent book. However, sometimes great ideas and plans fall short in the end. That is the case with "Cloud Charts - Trading Success with the Ichimoku Technique".
I would like to start my review pointing out some of the good things about this book. First of all, the author is obviously a very intelligent, accomplished individual and has loads of ideas to explore. The author also happens to be the founder of Updata, and as such uses many colored Updata charts on heavy gauge paper. This in and of itself is impressive. The general binding of the book, and quality of construction makes it a book that will last a 100 years on a library bookshelf!
My complaints are unfortunately many. I hope the author will read these and take it as constructive criticism for the next edition:
1. As another reviewer has noted, there are quite a few misspelled words and poor grammar. This made several areas of the book a tough reading assignment, and difficult to understand. I found myself reading and re-reading a paragraph - then reading it out loud with corrections to get the meaning. To compound this point, the book is just not a fun book to read. I mean to say that it just doesn't flow nicely. It's like a hodgepodge of ideas all cut & pasted together. It pains me to make this critique, as there were nicely laid out "Parts 1, 2 & 3", with bullet point summarizations. It's a good read for someone who's after a bunch of ideas, but not for someone seeking deeper solid take-aways. It's like a collection of semi-related magazine articles organized into sections.
2. The author does not come out and directly advertise Updata, but many references to proprietary and/or unique features of this charting platform are made. This, in and of itself isn't so bad. However, to take time and vaugely show an indicator called "indexia", and say "here's an example of a proprietary indicator in TA", is not good. I as the reader am left hanging to go and find out what "indexia" is. The same can be said with things like the "heat map", "flip charts", and "optimized trailing stops". If I had an Updata platform, then I could spend time exploring the value of these. In all fairness the author provides a 30 day free trial to Updata (TraderPro). It's about $150/month after that if you want to keep it, along with realtime data.
3. As a buyer of this book, I was seeking to find out more about the the Ichimoku Kinko Hyo indicator itself. I have gone to free websites and already understood most of the basics, and was hoping to delve deeper into it's underlying meanings. The author instead has decided to combine Western TA techniques, and a collection of other ideas to get more meaning out of the indicator. This exercise for me ended up being a whole bunch of disconnected ideas to explore - with the implied use of Updata TraderPro.
4. Just a little over 50% of the entire book (Part 1), was dedicated to classical Western TA. In my opinion, this was way too much surface information to help the beginner, and way to generalized for the experienced trader. I consider myself to be in the former group, and was somewhat irritated wading through this filler material. I will say that the section on Point & Figure, and candlesticks was somewhat interesting. In fact, maybe the author should have just focused on these. As another suggestion, eliminate most of the TA material and expand on money management - that's where the money is made isn't it??
Don't get me wrong, I think this book has value. I however don't have TraderPro and just wanted to learn more about Ichimoku. My goal is to make money, not to play with endless variations on technical analysis. I will say that I did pick up a couple interesting points in this book, and reinforced some notions I've developed on my own. Even with a three star rating, it's not a bad book to have around in it's current form, but waiting for the next edition would be advised. If you have Updata TraderPro, then maybe this book gets a four star rating.
32 of 35 people found the following review helpful
on September 1, 2010
Cloud Charts - Trading Success with the Ichimoku Technique
by David Linton- reviewed by Larry Lovrencic
My introduction to Ichimoku charts was at the 1997 IFTA conference held in Sydney. During a conversation with Dan Gramza, from Chicago, who teaches the Japanese Candlestick method, and members of the Japanese contingent, Dan steered the discussion to Ichimoku. I thought to myself `What was that? Itchy what? Ah, Ichimoku, that Japanese method steeped in mystique'. Our Japanese colleagues did their best to explain but found it very difficult to do so in a quick informal chat. Intrigued by the encounter, I went off searching for anything I could find about Ichimoku, with little immediate success. Over the years, there have been only a few works which have made their way to English translation and a few written by Western converts.
David Linton, the author of Cloud Charts, had his interest in Ichimoku charts `sparked' during a presentation by Rick Bensignor at the 2004 IFTA conference in Madrid. David had heard of the method prior to the conference but credits Rick with presenting it in an `understable' way. David set out on a quest for Ichimoku knowledge. He researched the internet, questioned Japanese delegates at subsequent IFTA conferences, sought out Rick Bensignor at conferences and meetings and even flew to Tokyo. The fruit of that quest is the book, Cloud Charts.
The Ichimoku method is now fast becoming popular in Western trading rooms and is available on almost all technical analysis software. David must take some credit for turning what seemed to be an exotic and complicated method into an easily understandable and robust trading and analysis tool for non-Japanese speaking technical analysts.
So, what is Ichimoku? The full name of the method is Ichimoku Kinko Hyo which means `at one glance balance bar chart'. Ichimoku charts were devised by Goichi Hosoda , a Tokyo journalist, who believed that once the method was fully understood, one could comprehend the exact state of a market at a glance. Most of the Ichimoku indicators represent equilibrium in one time frame or another and price action is generally analysed with regard to whether the market is in equilibrium, moving away from it or reverting back to it. By their nature, the various indicators also offer dynamic areas of support or resistance.
Cloud Charts is divided into three parts. The first is for the novice technical analyst and is designed to give them an understanding of many basic technical analysis concepts involved with not only Ichimoku analysis but also traditional techniques. More experienced technical analysts may wish to skip this part.
Part two introduces the reader to the basic indicators used in Ichimoku charts (David calls them cloud charts). This section deals with the derivation and interpretation of:
1. The Turning Line (also called the Conversion Line)
2. The Standard Line ( also called the Base Line)
3. The Cloud Span A ( also called the Cloud Span 1)
4. The Cloud Span B (also called the Cloud Span 2)
5. The Lagging Line ( also called the Lagging Span)
Part two offers a guide to applying Ichimoku charts in a multiple time frame sense, as well as the often overlooked Wave Principle, Price Targets and Time Span Principle. However, the application of Ichimoku charts to price and time projection is very subjective and for that reason alone the projections are quite often not utilised by even experienced analysts.
Looking at an Ichimoku chart, it's no surprise that analysts are sometimes turned off by the busyness of the chart. It can look like chaos to the uninitiated but the key to getting past that is understanding the formula to each indicator, how they combine with each other, how they represent a consensus of price action in different time frames and colour-coding. In part two David explains construction and interpretation of the charts in a manner that is easy for any newcomer to technical analysis let alone a professional on a trading desk.
Part three, my favourite part of the book, is where we are encouraged to think outside of the box. Here, the use of Ichimoku charts are combined with other technical analysis techniques, alternative time inputs into the indicators are suggested and the application to market breadth analysis is considered. There is also a chapter on back testing for the quantitative traders to consume.
Overall, this book, in an easily read manner, brings together the body of knowledge of a Japanese technical analysis method which was once thought of as exotic and over-complicated. It has potential to become the definitive English language text on the Ichimoku Kinko Hyo technical analysis method.
5 of 5 people found the following review helpful
on March 11, 2013
Cloud Charts - Trading Success with the Ichimoku Technique by David Linton.
David Linton is the CEO of Updata Plc a market data and charting package company. You can view a selection of pages within the book by googleing cloudcharts and go to David Lintons website as this isn't available on Amazon.
Pages 1-117 of this book cover the basic indicators such as Dow Theory, support and resistance, reversals, moving averages, MACD, RSI, seasonality, Fibonacci, point and figure and candlestick. He covers a little about money management when discussing stop-losses but it isn't until you get to page 121 that he begins discuss in any depth the subject of the book Ichimoku / Cloud charts.
Page 120-130 covers how Ichimoku charts are constructed, 131-146 their interpretation, 147-160 the time frames to use Ichimoku in, 161-186 pattern techniques and time frames, 187-202 Linton uses Ichimoku in conjunction with other indicators i.e. moving averages, point and figure etc. From page 202 until the end of the book he discusses back testing strategies and breadth analysis.
I feel this book is an introductory explanation of Ichimoku / Cloud charts. This is a theory book and despite its title gives little indication of much practical success using the techniques outlined in a trading environment. Had the writer traded and shown his success he could have replaced the first half of the book, which discusses basic indicators, with practical examples of Ichimoku's usefulness and accuracy across various markets and instruments.
Would I have bought this book now that I know its contents? Well it does have its weaknesses, but the answer has to be, Yes. Is it a reasonable good tutorial on Ichimoku? Yes. But I know some other traders who are a little more hard nosed than I am who would disagree. I must admit here I do have another influence when writing this review, I'm a great believer in market and trader education, I buy books, read and underline them and regularly and use them as a reference, as I will with this book. Paying this relatively expensive price for a book on indicators is a lot cheaper than entering a trade without knowing about good indicators.
For those who want a good and free quick introduction to Ichimoku, go to Investopedia and enter Ichimoku also the FXWords web site. For a more in depth explanation google kumotrader and select READ THIS FIRST, its good, some might say as good as this book. To watch a video on how Ichimoku is used in practice go to youtube and search for Ichimoku. I tried to include the web addresses for these references but its against Amazons policy to include them in reviews. I wish you well in your trades.
3 of 3 people found the following review helpful
on December 20, 2013
I am a long term investor (I hold stocks for several years or more) who has done well self directing my own IRA. I do fundamental analysis first and look for companies which meet my criterion. I then calculate fair value and check price of shares. If fair value is 50% above price of share I place the stock on my short list. I then use cloud charting to check if the stock is in a mid term or longer bullish trend I am now using cloud charting to determine that. This book helped me learn the technique. Ichimoku means equilibrium at a glance. That is does. Cloud charts seem overwhelming at first but once learned I can go through a series of cloud charts to determine if a ticker (stock) is in a bullish trend. If so I then use candlestick analysis to time the trade. Works for me. This book is a good introduction. I wished the author had use fewer pages on technical analysis or more on Ichimoku hence 4 stars and not 5.The author could then refer the reader to books he finds useful on the western technical analysis. I wish the charts were larger, that would be helpful also. I would have used a whole page for a chart. He has a good introduction into the manner how cloud charts are constructed. He presents several techniques on using them in transactions. I wished there was more on techniques for entering or exiting a position.
I glad I read the book. It has been useful to me..
5 of 6 people found the following review helpful
on May 4, 2014
This is the very best book in English so far on Ichimoku Kinko Hyo (一目均衡表), or, "at one glance" charting. This is a Japanese charting technique developed in the late 1930s by Goichi Hosoda (細田悟一), a newspaper man in Japan, who, with a team of people, did manual backtesting to develop and perfect this charting technique. It is quite effective in Forex/currency trading, but works in all markets and time frames. I personally trade Forex and find it simple but effective.
Ichimoku charting relies on five lines. David Linton uses the following descriptive English terms in his book:
1. Turning line - the average of the 9-day high and the 9-day low plotted over time
2. Standard line - the average of the 26-day high and the 26-day low plotted over time.
3. Lagging line - the price shifted backward 26 days.
4. Cloud span A - the average of the turning line and standard line plotted over time shifted 26 days forward.
5. Cloud span B - the average of the 52-day high and the 52-day low plotted over time shifted 26 days forward.
Linton's book discusses the history of Ichimoku charting. Then, he goes into a nice review of technical analysis, including moving averages, oscillators, volume, candlesticks, shapes, trendlines, indicators and point and figure charts. He points out that the moving average is the essence of technical analysis, and this is the best way to enter into an understanding of Ichimoku. He shows how Ichimoku charting has elements of all the above in "one glance" as the name Ichi-moku means "one look" in Japanese.
He then goes into detail about analyzing Ichimoku charts. Unlike many inferior books, he doesn't give a lot of spurious indicators and line criteria you may have read, which are sort of Western-flavored distortions of Ichimoku, like trying to fit Ichimoku into a MACD-D box. He points out how the lagging line and the Cloud are the quintessence of the Ichimoku chart, and in that way, like Renko and Kagi methods, they incorporate price action and mix it with moving averages through the turning and standard lines.
He then goes on to discuss advanced methods such as incorporating point and figure charting, candlesticks and "Japanese shapes" with the Ichimoku charts. His book is quite a good resource for those other three methods in that way too. The section on Japanese shapes is interesting, being sort of a Japanese cross of triple top or "cup and handle shapes" crossed with Elliott wave theory. I have never seen anything about this topic in my life, let alone seen it incorporated with Ichimoku charting.
He has a nice summary of risk management and it's importance as well. While he works or has a deal with a software or signals company called Updata, I don't even know exactly what it is or what they do, since he soft-petals this association. He only endorses it gently in the introduction, and the charts are produced on their software it says in the label. Otherwise, you wouldn't even know of his association with them. He does not, like many of these books, waste any pages going into detail on how to do settings on his proprietary software, and, in fact, he says "you can do this only any software quite easily." Personally I use MT4 and was able to reproduce everything.
The book is absolutely gorgeous too, with beautifully colored, clear and neat charts. It is hardback with a well-designed book jacket attractively colored. The paper is luminous and thick, and the type is strongly fonted and luscious on the page. This is a very classy, crisp book, for any field of study - a quality book!
All in all, this is the best book in English on Ichimoku charting at this time - hands down!
As an aside, people always want to know with trading books if you'll "make money." First of all, I seriously doubt you'll make money ever with trading unless you're a pro on the inside, not enough to justify the time sucked from your day job anyway. Also, indicators always lag, including this one, since they are past tense always, and price is future forward. I've tried everything, including indicator-less or "naked" price action trading, and the problem with price action trading is you essentially "give up" on understanding your market's future based on the past, and you might as well flip a coin then. Fundamental trading is an attractive concept, but a fantasy, since, in forex, no one really knows what the fundamental are, and they switch all the time, and in other markets, like equity, the market participants are irrational, so the value isn't well related to fundamental, except in the periodic return to the mean, which you could get from technical analysis. All indicators work equally well, or not, based on the idea that "the trend is your friend." I find Ichimoku trading to be as good as a hundred complex indicators, but simpler, more efficient, and less delusional than looking for the "holy grail." If you want to trade, and trade Ichimoku, this book is more than practical, and ultimately more applicable than most trading books, which are a failed trader realizing that writing and selling books is a more reliable income than trading. If someone did having an awesome trading technique, I doubt they would publish it in a book, as they would lose their market edge and waste time they could be using to make money. Classic techniques like Ichimoku work better than anything else over the long run to give you a reasonable, modest rate of return on your investment, and the Ichimoku technique is simple, classic, efficient, and attractive, like most thing Japanese. It's the traders equivalent of a Zen garden! Mr. Linton comes across as a somewhat conservative, rock-solid trader, emphasizing risk management and modest return. Again, this is a refreshing change from the usual sensationalist, "promise the moon" nonsense of most trading books.
3 of 3 people found the following review helpful
on November 15, 2013
It is a good book, generally speaking. The author doesn't really catch the spirit of the original Japanese books, but still, the best possible English book around. I believe you can be profitable after reading this book. It is way better than Nicole Elliott's and Manesh Patel's ones. If you like Ichimoku and can only read English, This is the one.
3 of 4 people found the following review helpful
on December 14, 2010
As a trading educator, with several published books of my own, I wanted to expand my knowledge of the Ichimoku Techniques. This book is the best I found to do just that - barring speaking Japanese, I guess!
I bought the book on publication, and was immediately impressed by the quality of the production. Of necessity, there are many coloured diagrams, and the paper chosen is heavyweight, providing excellent reproduction. It must have taken a long time to assemble all the real examples, I speak from experience!
There is some ground covered which is outside the realm of Ichimoku as such, as has been mentioned in other reviews. I think is well placed, and an excellent aide memoire even for experienced traders. The book would be less useful if it were skipped, and it is always worth seeing the precise views and modus operandi of others to standard technical analysis.
The Ichimoku discussion is complete and thorough, and provides the best English language grounding that I have found. The many diagrams, taken from actual charts, add enormously to understanding and usage of the techniques. Interestingly, David also points out possible shortcomings, and the fact that Ichimoku will not be a suitable tool for some charts, and this adds to the value of the discussion.
In short, this book is highly recommended to those who are interested in adding this tool to their arsenal. It is very reasonably priced for what it is, as trading books can be very expensive, and as such is an easy addition to the trader's library.
9 of 13 people found the following review helpful
on November 7, 2011
I bought the 2010 first edition of this book to learn Cloud Charting. I was so happy to receive it that I read up to page 76 the day after it arrived. Those introductory pages provide a recap of classical technical analysis (TA). I did not see any glaring errors in the Chapter on Point & Figure charting, but I don't use P&F charts, so any typos in that chapter would not be as glaring as were those in the earlier chapters.
It was very disappointing to find a truly unbelievable number of obvious typographical errors in the first 76 pages. It first seemed as if the author ran the text through a spell-checker and an automated grammar checker but didn't take even a full minute-per-page to read those 76 introductory pages.
It's a crying shame that with so few texts in English on Cloud Charts that the first edition of this book is so seriously flawed, because, according to the Acknowledgements, the only formal editing of it was done by an undergraduate student in English Literature who, it says, focused on the grammar. That editor, who was named, lacks the most basic skills of technical editing. While she may be perfectly competent to grade freshman composition submissions at the college level, she seems to know nothing about TA and is unschooled in technical writing, much less technical editing for a book.
Mr. Linton thanks numerous TA professionals for reading drafts of this book. It seems as if every one of those professionals skipped over the first 76 pages, maybe thinking it would be too boring to read his recap of classical TA ... or maybe they didn't have time for that. Or maybe the errors were introduced after they had reviewed the manuscript.
I hope that those "peer reviewers" found most of Mr. Linton's typos in the later sections describing Cloud Charting and communicated them to Updata so they could be corrected in this first edition. If not, this book will be an extremely aggravating read if I'm forced to find and understand numerous typos in technical material which is wholly new to me. It was very easy to spot the typos in the TA recap. It won't be easy to decipher the author's typos if they are as prevalent in the Cloud Chart discussion as they are in the TA recap through page 76.
The purchaser of a book such as this should not be required to provide the author and publisher with uncompensated technical editing services.
I asked them to provide me with an errata sheet. The first edition of this book needs one very badly.
1 of 1 people found the following review helpful
on July 26, 2013
It is my feeling that this book is not for the beginning trader. The language and acronyms require an experienced trade knowledge of stock or currency trading markets to understand the book. David Becket Linton does not take into account the experience level of the trader when he begins to write the effective use of the Cloud Charts. When he starts to explain why or how a trend movement begins or starts, he does not provide clarity in his charts with arrows about what he is trying to communicate. He explains, by color, without referencing what each color used represents on the chart, what is happening, which leaves me completely at loss as to what is being expressed through his explanations. Because it is an expensive book, I believe it should be noted upfront that the book is not for the new trader.