Ichimoku Forex Strategy

Japan Ichimok indicator

Ichimoku Forex Strategy: Tradeing with trend

On the Japanese Ichimoku indicator, I was devoted to presenting the individual components of this forex indicator. I will show you the calculations of these indicator, how to determine the trend and how to keep the trend confirmed. Now you will see more practical part of Ichimok’s trading indicator.

Ichimoku is a trendy Forex strategy. As such, it tries to capture the trend and keep the traders in it for as long as possible. The disadvantage of Ichimok is similar to other trend strategies, often later capturing a new trend. As I said last, the most important levels in Ichimok are the Tenkan Dream and Kijun, or the moving averages whose crossing gives trade signals. As can be seen in the picture, the crossing of the moving averages itself generates a lot of business signals that are more or less good. For long-term business account growth, however, the approach based on just line crossing would not be the best decision. So then comes Kumo, which helps us determine the trend, which will filter stores. Let’s recall that if the price under Kum is the market in the bear trend, if it is on Kum, the market is growing. In the picture we see that the price is most of the time under the cloud. The trend can therefore be considered as a bear. In such a case, we should only trade downwards. We see three such signals on the graph.

We must consider the ideal sales signal one that meets the following conditions

The price is under Kumo

The moving averages cross below Kumo down

Chikou Span is below the 26 period price back

According to the above rules, we see that the rules only met the first and third entries. The second entry did not meet the crossing rule under Kum.

We consider the ideal buy signal to be one that meets the following conditions

The price is above Kumo

The moving averages cross Kumo upwards

Chikou Span is higher than the 26period price back

Money-management

Each trend strategy should be based on quality money-management. We should therefore strive to maintain a profitable position until the end of the trend and logically end the loss. Simple thesis, however, is not easy to fill. However, Ichimok can help. The stop-loss level should be placed on the far side of the Kuma and SL sliding based on the Kuma motion.