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.
On the H4 chart we can see that after the break from bearish cloud Kumo price few times bounced of its bands – Senkou Span A. We can even spot few bearish pin bars in the row. It is a signal to open short position. I have set my Stop Loss above previous high in the area of 0.7705. Take Profit is set on the support in 0.7580 area. It gives nice reward to risk ratio of almost 7:1. I opened this position with 24broker which offers more than 200 different financial symbols.
Strong swings on opened position are still happening. Every time there are some gains, another candles reject them. Position is still in the Break Even area. Fortunately, the swap is positive, so I can take advantage of that. Now we just have to wait. Cloud changed colour to bullish, so maybe in near future it will work as the support for the price.
Another signal to open short position. Although I have already opened position with Canadian dollar, I count more on the sterling weakness instead of CAD strength. Tenkan-sen crossed Kijun-sen from above, in addition it happened below resistance from the daily chart. The target is located near 1.64 area. RR ratio was quite weak, so I decided to open sell limit order on 50% retracement of last bearish candle. We will see if this position will be opened.