Ichimoku Trading Strategies 31-March 2014 #3

Apparently the bearish mood mentioned in previous post has not sustained.

Price action climbed upwards in the last few periods and now into the kumo cloud.

Tenkan sen already cut above the kijun-sen, and chikou span is now above tenkan-sen and kijun-sen that are 26 periods earlier. The comforting portion, all three are below the kumo cloud. However, the forward kumo cloud seems to have a change from bearish to bullish mood.

Trade plan ahead: Add more position if price action returns below kumo cloud lo, and at level around kijun-sen; prepare to reduce or exit when price action goes above the kumo cloud hi; await to be stopped out.

Ichimoku Trading Strategies 31-March 2014 #2

Price action has trended lower in the last couple of days since the position was established.

Tenkan-sen has now re-cut below kijun-sen while below the kumo cloud and chikou span continued to trend lower because of the current price action. Chikou span has reflected, despite price action being higher previously, is now at the low region, it shows the weakness of the bulls above the chikou span.

The forward kumo cloud, being bearish, also trending lower, and thicker.

Continue to see a bearish mood ahead, and if opportunity arises, may continue to add in short position.

Ichimoku Trading Strategies 31-March 2014 #1

Established a new position.

Price action has traded below the kumo cloud recently, coupled with tenkan-sen, kijun-sen and chikou span cutting below the kumo lo. Divergence between the tenkan-sen and kijun-sen reflected increased in volatility in the price action itself.

While price action remains below the kumo lo, it retraces to kijun-sen level. Sufficient strength in price action is required to have the chikou-span cut above the kumo hi. Forward kumo reflected bearish mode and moved lower.

Position is therefore established with stop loss above kumo high, a distant away. Overall risk for this trade in this portfolio remains @ 2%.