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EURUSD 1H ICHIMOKU STRATEGYStep #1 Wait for the Price to Break and close below the Ichimoku Cloud Ichimoku cloud trading requires for the price to trade below the Cloud because that’s a bearish signal and potentially the beginning of a new down-trend. The cloud is built to highlight support and resistance levels and it’s supposed to highlight several layers deep because support and resistance are not a single line drawn in the sand, but several layers deep. So, when we break above or below the Ichimoku Cloud that signals a deep shift in the market sentiment. Step #2 Wait for the Crossover: The Conversion Line needs to break below the Base Line. The price breakout below the Cloud needs to be followed by the crossover of the Conversion Line below the Base Line. Once these two conditions are fulfilled only then we can look to enter a trade. As you can notice the Ichimoku Cloud indicator is a very complex technical indicator that can be used even as a moving average crossover strategy. Now, we’re going to lay down a very simple entry technique for the Ichimoku Kinko Hyo trading system. Step #3 Sell after the crossover at the opening of the next candle Ideally, any short trades taken using the Ichimoku strategy are taken when the price is trading below the Cloud. Our team at TGS website has adopted a more conservative approach and added an extra factor of confluence before pulling the trigger on a trade. So, after the crossover we sell at the opening of the next candle. Step #4 Place protective stop loss above the breakout candle The ideal location to hide our protective stop loss is above the low of the breakout candle. This trading technique accomplishes two major things. Firstly, it’s minimizing significantly the risk of losing big money and secondly, it helps us trade with the market order flow. Since this is a swing trading strategy we’re looking to capture as much as possible from this presumably new trend and we’ll be looking to trail our stop loss level above the Cloud or exit the position once a new crossover happens in the opposite direction. Step #5 Take Profit when the Conversion Line crosses below the Base Line or your own exit strategy We only need one simple condition to be satisfied for our take profit strategy. When the conversion line crosses above the base line we want to take profits and exit our trade. Alternatively, you can wait until the price breaks above the Cloud but this means risking to lose some parts of your profits. In order to gain more sometimes you have to be willing to lose some. Note** the above was an example of a SELL trade using the advanced 9.09% Ichimoku trading strategies. Use the same rules for a BUY trade – but in reverse. PM me if you want to read the complete strategy
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by Tradingstrategyguides