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.
I decided to change a little parameters of Ichimoku indicator. So far I used standard setting – 9, 26, 52. Now I modified it a little to better fit H4 time frame:
- 9 – 1.5 trading days (I was considering 12, but I had a feeling that Tenkan-sen is too slow)
- 30 – trading week (5 days * 6 candles)
- 60 – two trading weeks (10 days * 6 candles)
We will see if it will be better, charts are changed just slightly. Now let’s go to today’s Ichimoku overview.
On the H4 chart we can see that price is below important support, and currently there is a retest from below. In addition a pin bar started to create. When the current candle will close and its shape will not change much, we can open short position.
Price broke tonight from bearish Kumo cloud, what is a weak buy signal. Currently there is a test of Senkou Span A happening. If there will be any buy signal in this area, we can think about opening long position, especially because price successfully tested new support at 1.2765.
Yesterday’s position ended with a loss. Just after opening it, there was a small profit, but soon huge appreciation happened. An hour ago it reached a Stop Loss. Currently the price is reversing, maybe there will be an opportunity to open short after rebound from the bearish cloud.