Image: Oanda
Another Ichimoku Forex Trade for the day.
Let us do a quick review for the trades did earlier.
Placed a stop in trade earlier of the day at around 1500h. first yellow circle) A square box denoted the stop in order, a down triangle denoted the trade had been executed.
This trade was made with tenkan-sen crossing below kijun-sen, and both below the ichimoku cloud. More important, looked towards the right, chikou span crossed below the ichimoku cloud. As always mentioned in my other posts, chikou span crossing above or below the cloud is a very strong signal, which cannot be ignored.
After few hours, I placed another stop in order at the second yellow circle. During that moment, price action was trading upwards to the ichimoku cloud. However, none of the ichimoku charting indicators show signs of bullishness. Tenkan-sen had not yet crossed above kijun sen, and chikou span had not yet crossed over the cloud high. The stop in level was below tenkan-sen. And I was stopped in.
Moving forward, we did see tenkan-sen crossed over the kijun-sen, but its not going to be main concerned. Stop loss level then was above the Ichimoku cloud high.
Price action needed time, and patience was required.
Everyone likes a risk/reward ratio 3:1, 3 units of reward to 1 unit of risk.That's what I placed for my profit limit level. However, we need to understand what market wants to offer you.
I place a buy limit to close half of the positions at 13360. Subsequently I closed all, as its getting late at this part of the world.
Ichimoku Charting, one of the best trading technique for Forex.
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