Saturday, July 28, 2012
NZDUSD Ichimoku Trading Strategy (Long) Initiated
Was looking around the currencies pairs, found trading opportunities in the NZDUSD.
The price action had been in a upward trend, and had went into consolidation range.
As per ichimoku charting, the price has cut below, above, below and now above the kumo cloud.
Tenkan-sen has yet cut above the kijun sen, and kijun-sen is till below the kumo cloud. While price action has traded above the kumo cloud, the thin kumo cloud means the support might not be above to hold the price action when it makes a reversal.
An interesting part of the ichimoku charting is the chikou span cutting above the kumo cloud as of now. It also cuts above the price activities that had happened looking forward.
Price itself probably had not decided how it will go in the way forward by looking at the past which happened to be range bound.
The preceding trend was an upward trend prior to the range bound activities by the price. The accelerated falling price prior to the accelerated increase in price now do demonstrate the buyers are coming in, with sellers standing aside.
Positions has been established as price pierced above the kumo cloud. What is more significant is that chikou span also cuts above the kumo cloud.
More positions added as price continues to pierce above the previous high within the chikou span.
Will have to see how price reveals itself as the days come by.