AUDUSD Ichimoku Forex Trading Strategies 29 Jul 2014 #01

Welcome back to another forex trading day!!!

Today we will be looking at AUDUSD for our ichimoku forex trading.

Have a quick look at the ichimoku chart and a quick technical analysis on the ichimoku chart:

• Tenkan-sen has cut below the kijun-sen, but both lines remain above the ichimoku cloud.
• Chikou span has already cut below the ichimoku cloud, it went back into the cloud, and cross below the cloud lo without going above the cloud hi.
• Chikou span has not cut below the tenkan-sen nor the the kijun-sen.
• The forward cloud is bullish, but is diminishing, getting thinner, and a bearish cloud in the making.
• Price action itself is now in the ichimoku cloud, meaning its below the tenkan-sen too.

So what are we or you going to do with the information reflected from the ichimoku charting and the price action?

I have chosen to go bearish and have established a short position, stop loss level at 9450 level.

One of the most important ichimoku indicators is the chikou span. More than often, when most indicators in ichimoku charting indicates a bullish or bearish trends, we would always like to see chikou span also in the same direction with the remaining, meaning either it cross above the cloud high or cloud low.

We could see both from price action and chikou span, a sharp drive towards north before making a quick reversal south. While we could not see much from price itself, the chikou span, together with the cloud, revealed to us, despite crossing over the cloud high, a thick one, chikou span crossed below the cloud low too, relatively thick one too. and most important, chikou span did not manage to cross over the cloud high.

The cloud high forms a resistance to the chikou span.

I have therefore chosen a short, an aggressive one, but with manageable risk, for the ichimoku forex strategy.

Ichimoku Forex Trading Strategies 23 Jul 2014 #2

Welcome back!

If you have missed out the last forex blog post, do not miss out this one.

As mentioned previously, a short position has been established. The price action continued to trend lower below the ichimoku cloud. What's next?

I have chosen to square off half the position at the tenkan-sen level. You do not have to necessary follow the same I did. At tenkan-sen level, there's equal opportunity for buyer and seller. In fact, there's equal opportunity at every level. I have chosen to do so simply because the price action is far from the ichimoku cloud low, and tenkan-sen is just a level i have chosen to close part of the position.

Looking ahead, what forex trading strategies can we apply using ichimoku trading?

We may look at kijun-sen level should price action moves to there. A short position to add on or establish. Looking at chikou span level, we do not see it can trade above the ichimoku cloud high. As such, it is till bearish bias.

Cheeros.

Ichimoku Trading Strategy for Forex Trading 23 Jul 2014 #1

Established a position yesterday with half the risk.

Price action moved below gradually to below the ichimoku cloud, with tenkan-sen below kijun-sen, and chikou span cutting below the ichimoku cloud. the forward cloud in a bearish mood, but thin.

Stop loss level above the kumo cloud as usual.

Will see how price unfolds itself.