Ichimoku Trading Strategies 26-February 2014 #3

As discussed previously, added another position near the cloud hi. Price action had gone in the direction of the trades.

The overall risk is 2% of the portfolio. The current reward is approximately 2.8 times the risk. It could have been 3 times if price action is trading near the high for the period.

Squared off 50% of the positions.

While the price action is bullish, with tenkan-sen, kijun-sen and chikou span above the kumo cloud, it should be noted the forward kumo cloud is thin, which has been noted in the previous post.

Stop loss level will be adjusted to reduce the overall risk of the positions.

Depending how the price action unfolds itself, to approach in a conservative manner.

Ichimoku Trading Strategies 26-February 2014 #2

Almost a week since last post.

Price action continued the upward trend sharply after coming into the kumo cloud. It now continues to retreat back to where the kumo cloud hi is.

Tenkan-sen remains above ki-jun sen, and in a converging manner. This usually indicates volatility of the price action decreases.  Chikou span, cutting below the jikun-sen for few periods, recovers to stay above kijun-sen there after. The three lines remain above the Kumo cloud, show signs of the bullishness in the price activity.

However, it is of concern that the forward kumo cloud getting thinner. Support of the bullish trend ahead may diminish. A change of mood may occur should the bullish cloud turn bearish.

Position was added earlier. The view is the bullish cloud support now dictates the current trend. While moving forward, it may be wise to square off some profits. Overall stop loss level has also been adjusted to maintain risk allowance.

Ichimoku Trading Strategies 26-February 2014 #1

It has been quite some time. Previous position did not really work out well. Went for a short in price, but price decided to turn around. There were times when profit was there, it was not closed out, and subsequently become a loss.

Was away for holiday end January till Mid February, the normal Chinese New Year Holidays celebration at this part of the world.

Nevertheless, coming back to today's trade, long position established.

While price action is below the tenkan-sen and kijun-sen, it was just at the kumo cloud high. The thick kumo cloud probably provide the support required from the chart itself, and the up trending kumo indicates the "mood" ahead.

A stop loss is placed below the kumo lo. Aggressive traders may want to wait till chikou span cut below the cloud though.

Let's wait and see what price will unfold itself in the days ahead.