Ichimoku Trading Strategy: EURUSD forex trading since 10-Apr-2013 #2

Continued from previous ichimoku blog.

Technical Analysis (Ichimoku Charting)

Price action was quite choppy within a small range, and remained above the ichimoku cloud. Not much changes from tenkan-sen, kijun-sen or chikou span except convergence of tenkan sen and kijun-sen. Forward kumo cloud getting thicker, providing support to the upward trend.

Trading Strategies (Ichimoku Trading)

Established another position during the convergence period. Stop loss below the kumo cloud. With the thick kumo cloud ahead, can look for opportunities to long when price action trades near the tenkan-sen for aggressive taker, or kijun-sen if more conservative.

Singapore Ichimoku Trader

Ichimoku Trading Strategy: AUDUSD forex trading since 14-Mar-2013 #2

An update from previous ichimoku post for AUDUSD.

Long positions were stopped out for AUDUSD as price action touched the kumo cloud lo.

Technical Analysis (Ichimoku Charting)

Tenkan sen has not cut below the Kijun-sen. However, chikou span has already cut below tenkan-sen and kijun-sen 26 periods back. Kumo cloud ahead is getting thinner which can work both way for the bulls and bears. Price action is now near the ichimoku cloud lo.

Trading Strategies (Ichinoku Trading)

The thin kumo cloud provides neither support or resistance to the price action forward. An upward trend cloud suggesting on the bullish. Nevertheless, chikou span gave an indication about the trading activities between now and 26 period back. It can be seen bullishness in the past 26 periods has been diminished by the sharp drop of price action.

Stay out till after 24 Apr.

Aggressive trader may want to look at short with stop over the cloud hi.

Conservative trader may consider going long when price goes above 10450.

Singapore Ichimoku Trader

Ichimoku Trading Strategy: AUDUSD forex trading since 24-Jan-2013 #7

An update from previous ichimoku audusd blog. Shortly after that blog, position was stopped out. A re-emtry was made that night when returned from work. Good profit, though could be better, from the audusd trades.

Now having long position. Depending how the price action turns out, and how the ichimoku charting presents  itself, to trade accordingly.

Singapore Ichimoku Trader 

Ichimoku Trading Strategy: AUDUSD forex trading since 24-Jan-2013 #5

An update from previous ichimoku post.

After establishing the last short position on 21 Feb, price action did a reversal, touched the ichimoku cloud lo. It did not manage to penetrate through the cloud. Price continued to trend downwards to the target price level 10200. Will close out some position to lock in profit after this post.

Technical Analysis (Ichimoku Charting)

Tenkan sen, Kijun sen and Chikou span are all in line in bearish formation, very much a reflection of the downward trend of the price action. It is not likely to see a trend change in the near term. The forward ichimoku cloud in downward direction and remain relatively thick, providing resistance to the price action..

Trading Strategies (Ichimoku Trading)

Do not recommend long. Any long will be looking at price action proving that a trend change emerging, that only when price action is between between 10280-10360 in near term.

Look for short when price action reverse back to near Kijun sen, with stop loss above the ichimoku cloud hi.

Singapore Ichimoku Trader.

Ichimoku Trading Strategy: USDJPY forex trading since 09-Jan-2013 #2

Update from previous post. All long positions stopped out with minimal profit.

Technical Analysis (Ichimoku Charting)

Price action had went below the ichimoku cloud lo, but bounced back into the kumo region. Tenkan-sen inline with kijun-sen, and chikou span had cut below the kijun-sen. None of the lines is below the ichimoku cloud. The forward cloud is beginning to show signs of change, awaiting further confirmation from the kumo cloud itself.

Ichimoku Trading Strategies

A change in trend will only be considered when chikou span cut below the ichimoku cloud. If not, still favour a long when should the price action emerge out from the ichimoku cloud hi.

Aggressive taker can choose to go long or short now while price is in the kumo region, with stop loss at the other end of the cloud.

Singapore Ichimoku Trader

Ichimoku Trading Strategy: AUDUSD forex trading since 24-Jan-2013 #4

Established another short position earlier. Since last post, price action moved towards the ichimoku cloud lo and did not proceed further.

Technical Analysis (Ichimoku Charting)

Tenkan-sen is above the kijun-sen, and both below the ichimoku cloud. Trend continues to be bearish. Chikou span has not cut above the tenkan-sen or kijun-sen. This further enhanced the bearishness of the price action. The kumo continued to remain thick, providing strong resistance to the price action ahead.

Trading Strategies (Ichimoku Trading)

Long is not recommended. If persist on going long, will only consider when price action goes above 10320. And the next level to really give it a thought will be 1.0340.

Continue to look for opportunities to short, with stop loss above the kumo cloud high. Target level will be 10200.


Singapore Ichimoku Trader

Ichimoku: Tenkan-sen

Tenkan-Sen, also known as the conversion line, is the mid-point between the highest high and lowest low known for the past 9 periods.

It is often compared with 9 period simple moving averages (SMA).  However, both are very different in their own context. Tenkan-sen measures the average of price’s extreme high and low known in the last 9 periods, whereas SMA is the average of the closing price for the last 9 periods.

If the high and low used in the calculation occurred less than nine days ago, Tenkan-sen remains the same the next day. These sideway periods make the Tenkan-sen “flattening”, whereas the 9 periods SMA does not.

The chart below shows the visual comparison between Tenkan-sen and 9 periods SMA.

USDJPY Daily Chart with Tenkan-Sen Vs SMA

Tenkan-sen, when used on its own, provides an indication of the current price momentum compares to the prices over the last 9 periods based on how acute the line changes.

When used with reference to the current price period, Tenkan-sen offers insight to the trader whether the current price is being supported or resisted by Tenkan-sen.

Often, Tenkan-sen is used for its relation to Kijun-sen for the near term trend indication. When Tenkan-sen is above the Kijun-sen, it is bullish. When Tenkan-sen is below Kijun-sen, it is bearish.

USDCAD Daily Chart

The chart above illustrates the Bullish and Bearish signals when Tenkan-sen used in connection with Kijun-sen. It also shows how the current price momentum affects the Tenkan-sen change in angle.