Ichimoku Trading Strategy: AUDUSD forex trading since 24-Jan-2013 #7

An update from previous ichimoku audusd blog. Shortly after that blog, position was stopped out. A re-emtry was made that night when returned from work. Good profit, though could be better, from the audusd trades.

Now having long position. Depending how the price action turns out, and how the ichimoku charting presents  itself, to trade accordingly.

Singapore Ichimoku Trader 

GBPJPY Ichimoku Trading since 23-Jan-2013 #2

Continued from the earlier post, it was another choppy session for the GBPJPY. The price action downwards was short lived. The position was stop out.

Technical Analysis (Ichimoku Kinko Hyo)

Tenkan-sen is in the process of going over kijun-sen, with both lines taking the action in the kumo cloud.. Chikou span is bullish by mean of cutting tenkan-sen and kijun-sen. More important, breaking new 26 periods high. The kumo forward is not relatively thin or thinck. However, it does show the short term trend is edging upwards.

Trading Strategy (Ichimoku Charting)

While price itself is bullish, it remains to be seen. With tenkan-sen and kijun-sen in the cloud, it may pull back the pricing action to a more equilibrium state.

If long bias, establish long only near the cloud hi., else find other market.

ICHIMOKU CLOUD TRADING

The most unique feature about Ichimoku Kinko Hyo is its cloud or “kumo” in its charting.

The Cloud or Kumo

The chart below shows the price candle and cloud only ichimoku charting without the other 3 lines (Tenkan-sen, Kijun-sen & Chikou Span).

In its most simple form, the cloud provides an indicative support and resistance levels which can be labeled as cloud hi and cloud lo.

When price action is below the cloud, cloud lo becomes the first level of resistance, cloud hi become the second level of resistance.

Similarly, when price action is above the cloud, cloud hi becomes the first level of support; cloud lo becomes the second level of support.

From the Chart itself, it is within one glance a trader can identify the trend of the current price action and the support levels of the price action from the cloud hi and cloud lo.

Two Simple Ichimoku Trading Strategies

Understanding this concept about the cloud in the ichmoku charting, two simple trading strategies can be developed.

When price action moves from above the cloud to below cloud lo, it gives a sell signal. Stop loss can be placed at or above cloud hi.

When price action moves from below the cloud to above cloud hi, it gives a buy signal. Stop loss can be placed at or below the cloud lo.

These two ichimoku trading strategies can be enhanced further by each individual trader’s preference.

For the purpose of this literature, the Buy and Sell signals have been enhanced; buy end of day only when a full period is above the cloud, sell end of day only when a full period is below the cloud.

The ichimoku cloud trading is to let the position stay with the trend for as long as it could once it is established.

EURUSD Ichimoku Trading since 03-Jan-2013 #3

Continued from previous post.

Price action has been giving a wild swing. It is now above 13200 level. Positions have been established around 13090, 13050, 13200 & 13215 with stop loss @ 13250. Again, may be stopped out soon.

Technical Analysis (Ichimoku)

Tenkan-sen is converging towards kijun-sen, but yet to cut over. And both tenkan-sen and kijun sen are below the kumo cloud. However, chikou span has already cut the kumo cloud hi, but yet to cut tenkan-sen and kijun-sen. Price action itself is above the kijun-sen and below the kumo cloud.

Strategy (Ichimoku)

As with the very first post, opportunities arise below 13050 and above 13100-13200 where the thin kumo cloud is, which provided low resistance and support to the price action. It is happening now. With price action below the thin kumo cloud, it is still a bear trend. Sellers can add short with very limited risk just above the cloud hi. Buyers may want to hold till the confirmation of the price action above the cloud hi. Do take note of the forward cloud support level at 13150.

EURUSD Ichimoku Trading since 03-Jan-2013 #2

As mentioned on previous post, opportunities arise when below 13050. Price action accelerated downwards after the position established the day before. However, there was pulled back earlier during the US session. Established another short position.

Technical Analysis (Ichimoku)

Tenkan-sen and kijun-sen remained intact and on its way penetrating through the kumo cloud lo. Chikou span had cut through the cloud lo, but reversing back into the cloud region. Price action is now clearly below the kumo cloud lo. The Kumo ahead remains thin.

Strategy (Ichimoku)

Continue to remain cautious with the thin kumo cloud ahead. Very much is dependent on the price action activity at the thin cloud region. Any increase in position will be done gradually if there is any pull back in price action to near the kumo cloud lo.

EURUSD Ichimoku Trading since 03-Jan-2013 #1

The first trade of the year 2013!

Price action has been moving uptrend since the cross over the kumo cloud. Consolidation was formed since mid December 2012, before the break off yesterday (Probably due to the intermediate resolution to the fiscal cliff).

Technical (Ichimoku)

Tenkan-sen and kijun-sen converged and pointed downwards into the kumo cloud. Chikou span had already cut below the kijun-sen, but remains above the kumo cloud. The forward kumo cloud is getting thinner, resistance may not be strong. Price itself had penetrated into the cloud but yet form a period below the cloud lo.

Strategy (Ichimoku)

With no existing position, established a small short position just at cloud lo. Depending how the price reveals itself in the next few periods, opportunities arise between 13100-13200 or when below 13050. Stop loss level above cloud hi.

EURUSD Ichimoku Strategy since 21-Nov-2012 #7

A very happy new year. Came back from holidays yesterday night.

As per previous post, placed a stop loss below the kijun-sen. Stop loss triggered earlier today. The only difference was the stop loss level was in the mid of the kumo cloud.

As with the new year, wish every traders another prosperous year.

EURUSD Ichimoku Strategy since 21-Nov-2012 #6

Last post for the year. This is an update to the EURUSD positions established since 21 November 2012. The last post was made on 14 December after adding another position when tenkan sen cut above the jikun-sen.

The very first position was established on 21 November, when price action penetrated into the kumo cloud, with chikou span cutting above jikun sen.

Continued to established more positions as price action keep trending upwards. After Price itself established as earlier peak on 6 Dec, had took partial profit on the positions established earlier.

Thereafter, established 2 more positions, one when price traded near the kumo cloud top, the other when tenkan sen cut above jikun sen again.

Stop loss level is now adjusted to below the jikun-sen. If stop out, all positions will lock in profit pips as shown.

Once again, merry christmas & happy new year.

GBPUSD Ichimoku Trading since 21 Nov 2012

After taking profit a couple of days ago, price action made a U turn. As mentioned, planning for my exit since going for my year end holiday, all positions were stopped out for the stop loss level placed below the Jikun-sen. Good profits for all the positions built up since 21 November.

Merry Christmas and Happy New Year.

NZDUSD Ichimoku Trading Closed out

As per mentioned in earlier post on NZDUSD, will take opportunity to close out or exit NZDUSD.

Looking at the tenkan-sen meeting the jikun-sen, had taken the opportunity to exit and close out all NZDUSD position.

Technical (Ichimoku)

Tenkan-sen and Jikun-sen converging and likely to have a cross over. Chikou span is also looking to first cut the tenkan-sen. Thick kumo cloud ahead translating a strong support or resistant depending how the price action react the way forward.

Strategy (Ichimoku)

Where there are signs for short, trend remains upward as long as price action above the kumo cloud. Aggresive short bias may start establishing short position with stop loss above the highest high between now to chikou span. Another opportunity to go short is when chikou span cut below tenkan sen, follow by price action cutting below kumo cloud.

Aggresive long may start to build position now with stops loss just below the kumo cloud low. Otherwise, wait till price action above the tenkan sen.

GBPUSD Ichimoku Trading since 21 Nov 2012

An update to the positions established in GBPUSD.

Closed out the last position established on 12 December. It was established when Tenkan Sen cut above the Jikun-Sen as mentioned in the earlier ichimoku trading post.

It is likely to plan for exit strategy for the remaining positions as I will be going for my year end holiday.

NZDUSD Ichimoku Trading

This was another sharing trades for NZDUSD.

Took the opportunity to go long on 27 November when price action was trading just above the kumo cloud. Had actually added another positions on the 4 December, which was not reflected after that position was closed earlier this evening.

Profit of 201  pips. Still have another long position established on 27 December November. Will take opportunity to square off the position.

GBPUSD Ichimoku Trading since 21 Nov 2012

Continued update from previous post.

As mentioned previously, price level to look at when tenkan-sen cut above the jikun-sen or near the kumo cloud hi. Price action never fell back to kumo cloud high, but opportunity came when tenkan-sen cut above the jikun-sen. Established another long position to the existing long positions.

Technical (Ichimoku)

All ichimoku signals favor a bullish uptrend. Tenkan sen cut above the jikun sen while above the kumo cloud, chikou span above the kumo cloud, jikun-sen, and most of all, looking to go above within the 26 periods high forward to the current price. The only not so favorable situation is the forward cloud is not thick enough. A thick kumo cloud would give strong support to the price action forward.

Strategy (Ichimoku)
If long, stay put. May want to look to long at tenkan sen and jikin sen level.

Not recommended to go short. If any, aggressive taker may want to short once tenkan-sen cut below jikun sen.

EURUSD Ichimoku Strategy since 21-Nov-2012 #5

As per previous post mentioned, there was a pull back in price action to new the cloud hi. Price action actually went into the kumo cloud, and emerged out from the kumo cloud again on the upside.

Decided to add another long position as tenkan sen cut above the jikun sen. The forward cloud is thin. Will need to watch out price action activity around that period.

Technical (Ichimoku)

Tenkan-sen cut about jikun-sen while in the kumo cloud. Price action is clearly above the cloud. Chikou span has cut the tenkan sen and jikun sen, and looking to cut above 26 period price high.

The chikou span provides a clear picture between present price action and past price action activities. What is has demonstrated at one glance is the current price activities compared to 26 periods price activities from the current period.


The question now is will there be more shorts joining the EURUSD or there will be more shorts exiting the EURUSD.

From the chikou span, one could observe within 26 periods, price action fell sharply before making a U turn when it went into the kumo cloud.

Existing shorts within these 26 periods will have to make a decision, to stay or to exit or to add?

New positions taker will have to decide to go with long or short?


Strategy (Ichimoku)

For long, current price level is strategic to go long. For conservative, may want to wait till when price action went above 13130.

For short, aggressive taker may choose to go short and place stop loss above 13130. Else, it may be better to wait till price action goes below the cloud.

GBPUSD Ichimoku Trading since 21 Nov 2012

Continue update from previous post.

After establishing the positions earlier, price action made a move upwards, and began to pull back to below the jikun-sen.

Established another long position when the price traded near the kumo cloud hi.

Technical (Ichimoku)

Price action remains above the kumo cloud, with tenkan-sen crawling to climb over the jikun-sen. Chikou span has remained in the bullish region by maintaining above the jikun sen.

Strategy (Ichimoku)

Opportunity to go long with price action above the kumo cloud. Price level to look at when tenkan-sen cuts above jikun-sen. or near the kumo cloud high. Placed stop loss below cloud lo.

EURUSD Ichimoku Strategy since 21-Nov-2012 #4

It had been quite a volatile week for the Euro.

After establishing new position as mentioned in previous post, the price action had an upward movement to near 13130 level. that followed by a reversal or retraction to where the price now (12920 level as being check at this instant)

Some positions had been square off to lock in profit for the position established earlier. Also new position had been established when price action went below the jikun sen.

Technical (Ichimoku)

Price action remains around the kumo cloud top, which mean the kumo cloud support comes in play near this level, and the uptrend remains in tact.

However, tenkan-sen is converging towards jikun-sen, and likely to cross under the jikun-sen, the very first signal to go short (if one wants to).

Chikou span still above the tenkan sen, and likely to go below tenkan sen soon.

Strategy (Ichimoku Trading)

The next few periods of the price action will be significant.

Long position takers may choose this window to go long. With the kumo cloud support, price action should reveal accordingly.

Short position takers may start to establish small short position with aim of increasing more short position should price action goes below the cloud.

See how the price action comes about.

GBPUSD Ichimoku Trading

Sharing some trades for GBPUSD.

The very first position was taken when price action started to penetrate into the kumo cloud. During then, tenkan-sen had cross over the jikun-sen, and chikou span had cross over the tenkan-sen. Based on these two early signals from the ichimoku strategies, with price piercing through the kumo cloud, long one position.

The second trade was a conservative approach. Tenkan-sen above the Jikun-sen, chikou span above jikun-sen and above the kumo cloud, and price action penetrating above the top of the kumo cloud. Established the second position.

The third and last trade as of now, was established when price action touching the top of kumo cloud. This was add on to the long positions.

Stop loss level below the kumo cloud.

Depending how price action reveals, will react accordingly.

EURUSD Ichimoku Strategy since 21-Nov-2012 #3

Continued from yesterday's post.

Have added another long position when price action retraced back to where the tenkan-sen.

Ichimoku Technical

Looking forward, tenkan sen and jikun sen are converging, with a higher and thicker kumo ahead. Price action is anticipated to have consolidation around 13000 and above 12970.

Ichimoku Trading Strategy

Depending how the price action unveils itself, long position preferred. Can look to establish long position near the tenkan sen level, or when tenkan sen and jikun sen meet.

EURUSD Ichimoku Strategy since 21-Nov-2012 #2

This is an update from previous post.

Ichimoku Technical

After the earlier up move above the kumo cloud, price action retraced back to near the jikun-sen, now above the tenkan-sen. The thick kumo cloud ahead provides the support to keep the price level up. All ichimoku trading signals give a good uptrend momentum.

Ichimoku Trading Strategy

Continue to see opportunity to establish long positions when price action retrace to tenkan-sen or jikun-sen. Stop loss level to be below cloud.

EURUSD Ichimoku Strategy since 21-Nov-2012

The EURUSD price action had been volatile for the past few weeks, fundamentally and technically.

Ichimoku Technical

The very recent move of the price action revealed an accelerated upward move.

Prior to that, tenkan-san cut above the jikun sen some distant below the kumo cloud low. The price action itself began to move above the jikun-sen and tenkan sen and quickly into the kumo cloud region.

The chikou span also cut above the jikun-sen, while below the kumo cloud.

Ichimiku Strategy

Established a long position in EURUSD while the chikou span cut above the jikun-sen, a recut if technically speaking.

Looking forward,  depending how the price action reveals itself, a touch at the tenkan-sen could provide opportunity to go long.