Thursday, July 26, 2012
EURUSD Ichimoku Trading Strategy (Short) continued
Continued from previous post published few days ago.
Price action has not went went back to 1.2200. Have not done anything for the past few days besides watching the price action itself.
Currently, the price action has traded above the tenkan-sen. Tenkan-sen and Jikun-sen are probably converging towards each other. There might be some price consolidation coming forward. It could be in the range of 1.2100-1.2200.
The Kumo cloud is also getting thinner ahead. There might be chances where the price action will break through the the thin kumo cloud.
Have locked in partial profit and shifted stop loss level to the mid of the kumo cloud for the remaining positions.
Price is trading between tenkan-sen and jikun-sen. With the tenkan-sen and jikun-sen converging, there is chance where tenkan-sen cut above ji-kun-sen.
Chikou Span is not far away from the jikun-sen. With the thin kumo cloud ahead, there is no strong resistance to the price if the price will to start penetrate the kumo cloud.
The trend remains bearish.
Watch out for tenkan-sen cutting above jikun-sen, and how the price action reveals itself then.
New entrant might consider to establish some long position.