Saturday, August 11, 2012
EURUSD Ichimoku Trading Strategy (Long) update
Update from previous post.
Price has been trading lower after the position established.
Currently, price is trading along the jikun-sen, and tenkan-sen is converging towards jikun-sen. All the action is taking place above the kumo cloud.
The view forward remains bullish but in a conservative manner. It will be encouraging to see that price action trading above 12350 within the next few days, above the kumo cloud upper level.
When price action trades below 12250, where chikou span starts to trade below the jikun-sen, may start to reduce the position sizing. Nevertheless, stop loss level is placed below the kumo cloud.
If you favor a long:
For new position takers, may want to consider to establish new long position just above the kumo cloud, with stop loss level below the kumo cloud. Specifically, only when price trades above 12325 level.
Ideally, tenkan sen should not cut below jikun-sen or bounce off from jikun-sen when touched. Chikou span should not cut below jikun-sen for the uptrend to remain in tact.
If you favor a short:
For new position takers, may want to look out for few scenarios:
Tenkan-sen cut below jikun-sen
Price traded below kumo cloud
Chikou span cut below jikun-sen.
Depending on where the entry, can consider a money stop loss level or above the kumo cloud if price trading below kumo cloud.