Price breached Kijun approaching key resistance. If candle closes below that line we’ll be able to open short position, especially while we have clear pinbar on 1-hour chart. Stop order should lie couple pips above maximum price of that pinbar and first target should be at least 200 pips away where yesterday low is.
Similar situation to described above. But watch out while opening to many positions on the same currency – in this case AUD. Price bounced from support and in the same time went above Kijun line. Trading such setup should be similar as in previous case. Potential Risk to Reward ratio is about 6:1 here.
Price reached Kijun at last and retraced from it. That was sell signal – but on that pair long term trend is to the upside and on Daily chart price is close to upper bound of Kumo.
Similar situation on NZD/JPY. Price retraces after reaching Kijun line. Everything on 4-hour chart is set for decline but price is supported by daily chart, where trend is upward all the time. Soon price should reach cloud – if decline will persist – an such event will result in potential to go 350 pips south.
Retracement approached Kijun line and next candle may provide breaching signal out of Kumo – additionally enhanced by daily chart, where price is set for breach to the south out of the cloud! Despite my intuition tells me that bigger slump on the pair is unlike, Ichimoku technique shows that it’s very probable (under condition that 4-hour candle will close below 0.8976). In this case Stop Loss should be placed right above last high.
Article prepared by Marcin Wenus, Chief Editor at Comparic.
Marcin Wenus is well known in Poland as a member of Polish Forex Community. He has 7 years of experience in trading. His webinars, seminars and live trading presentations with Ichimoku technique gains a lot of interest among traders.