Ichimoku is an investment strategy of trend following, it works great on H4, D1 and higher time frames. In this series of articles I present my setups and observations using Ichimoku, supports and resistances and Price Action patterns. You can also check previous Ichimoku overview.
Since yesterday’s Ichimoku overview both of my positions were closed. One of them brought a loss, but the other one was the most profitable position since the beginning of this series of articles. More details below.
On the H4 chart we can see that upper band of Kumo cloud (Senkou Span B) worked as a resistance and after series of losses the price is below important support from the daily chart. Currently there could be a bullish correction. If there will be any sell signal in this area, I will open short position. Ichimoku setup is favourable on this pair.
This is the position which brought two-digit profit. I wrote about the possibility to open it last Thursday. Tiny – just a little more than 15 pips – Stop Loss let me get really nice RR ratio. For most of the time position was bringing a profit, just one time it was dangerously close to the Stop Loss. Today at night there was a strong weakening of Australian dollar, thanks to that price reached Take Profit. As a result my account increased by more than 18%. I opened this position with 24option broker, which offers more than 200 financial symbols to invest.
This position for most of the time consolidated with a little profit. On Monday it started to depreciate strongly and eventually yesterday my long closed on Stop Loss. Ichimoku lines couldn’t stop bearish attack, so there was not much to do. Considering accuracy of Ichimoku signals, which is about 40-50%, we need to be ready to have losses.
Price is in a really interesting place. Bullish correction reached below broken support from the daily chart, which should now work as a resistance. In addition, price is in the area of bearish Kumo cloud. If there will be any sell signal, we can think about opening shorts. The problem could be in Chikou Span as a filter, it will be probably above the price, what will stop us from entering the market.