Options Ichimoku in PFOREX Assist
Ninety Seventh session – PFOREX Assist Tutorial
Welcome back to Forex professional training.
In this session we will review;
- The available Ichimoku strategies on Options trades
- The Ichimoku strategies’ examples in PFOREX Assist
Ichimoku for Options (Call/Put)
The components and specifications of this trading indicator is described thoroughly in session 89. Due to high performance of Ichimoku strategies, they are suitable for Options market especially on Trend markets with suitable slope.
The continuation signals are delivered by these strategies. The available Ichimoku strategies on Options (Call/Put) trades are as follows;
- Ichimoku Option Tenkan Kijun
- Ichimoku Option Senkou Shift
- Ichimoku Option Kijun Cross
- Ichimoku Option Chikou Span
- Ichimoku Option Kumo Breakout
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Ichimoku Strategies
IO Tenkan Kijun
This strategy is developed after Tenkan-Sen line crosses Kijun-Sen toward a direction. There are other conditions that are applied to enhance the generated signal such as Kumo state.
The specifications of this strategy are as follows;
- Market type: Trend market
- Symbols: Entire symbols
- Time-frames: All timeframes
- Entry Price:
- Buy Order: Over the Bullish Kumo, on the spot that Tenkan crosses the Kijun toward top
- Sell Order: Below the Bearish Kumo, on the spot that Tenkan crosses the Kijun toward bottom
- Confirmations: Hidden Divergence, powerful candlestick pattern, Classic Pattern, Heikin-Ashi and Overbought/Oversold by RSI or Stochastic
Now let’s check some examples of this strategy.
After price has decreased slightly on the long bullish trend, Tenkan-Sen crossed the Kijun-Sen toward bottom. Then price returned toward top and Tenkan bounced back over the Kijun so the bullish signal is generated while price, Tenkan & Kijun are over the Bullish Kumo to confirm the bullish trend.
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On Silver price chart, Tenkan-Sen crossed the Kijun-Sen toward top. Then price continued its downward direction and Tenkan passed the Kijun toward the bottom while both lines and price trend were below the bearish Kumo. The Bearish Triangle also formed to confirm the bearish signal.
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IO Senkou Shift
This strategy is developed when Kumo changes it state. The location of price trend, Tenkan-Sen and Kijun-Sen are checked to deliver this signal. On the Bearish format Tenkan must be lower than Kijun and Kijun must be lower than the Kumo. On the Bullish format, Tenkan must be higher than Kijun and Kijun must be higher than the Kumo. The trend direction of Kumo after the shifting spot has powerful effect on the validity of generated signal.
The specifications of this strategy are as follows;
- Market type: Trend market
- Symbols: Entire symbols
- Time-frames: All timeframes
- Entry Price:
- Buy Order: Over the Kumo, on the spot that Senkou A crosses B toward top
- Sell Order: Below the Kumo, on the spot that Senkou A crosses B toward bottom
- Confirmations: Hidden Divergence, powerful candlestick pattern, Heikin-Ashi and CCI oscillator
Now let’s check some examples of this strategy.
On EURCHF price, Senkou Span A passed the Senkou Span B toward top to shift the Kumo state from bearish to bullish. The Tenkan –Sen is over the Kijun-Sen and Kijun is over the Kumo so the bullish signal is confirmed.
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On GBPUSD chart, Senkou A passed Senkou B toward bellow while Tenkan and Kijun were below the Kumo. The future bearish trend of Kumo confirmed the bearish signal.
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IO Kijun Cross
This strategy is developed if the price passes Kijun-Sen under some conditions. On the Bearish format, Tenkan, Kijun and price must be below the Bearish Kumo. On the Bullish format, Tenkan, Kijun and price must be over the Bullish Kumo.
The specifications of this strategy are as follows;
- Market type: Trend market
- Symbols: Entire symbols
- Time-frames: All timeframes
- Entry Price:
- Buy Order: Over the bullish Kumo, where price crosses Kijun toward top
- Sell Order: Below the bearish Kumo, where price crosses Kijun toward bottom
- Confirmations: Hidden Divergence, powerful candlestick pattern, Heikin-Ashi and CCI oscillator
Now let’s check some examples of this strategy.
The price decreased inside the Kumo and returned over it. The price then passed the Kijun and Tenkan toward top while both of them were over the bullish Kumo to confirm the bullish signal.
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In the next example, price increased inside the bearish Kumo, however, it retuned toward bottom and passed the Kijun and Tenkan while both of these lines were below the Kumo. Then the bearish signal was generated.
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IO Chikou Span
This strategy is developed when Chikou Span crosses the price under some conditions. On the Bearish format, price must be below the Bearish Kumo. On the Bullish format price must be over the Bullish Kumo.
The specifications of this strategy are as follows;
- Market type: Trend market
- Symbols: Entire symbols
- Time-frames: All timeframes
- Entry Price:
- Buy Order: Over the bullish Kumo, where Chikou passes the price toward top
- Sell Order: Below the bearish Kumo, where Chikou passes the price toward bottom
- Confirmations: Hidden Divergence, powerful candlestick pattern, Heikin-Ashi and CCI oscillator
Now let’s check some examples of this strategy.
On the GBPCHF chart, after price fluctuated over the Bullish Kumo, Chikou Span crossed the price trend while both of them were over the Kumo. The bullish state of Kumo also confirms this bullish signal.
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In the next example, price oscillated below the Kumo. Then Chikou Span passed the price toward bottom to confirm the probable future bearish trend. The bearish state of the Kumo confirms the bearish signal.
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IO Kumo Breakout
When price proceeds toward the Kumo and passes both Senkou-Span A & B then this strategy will generate a signal. On the bullish format, Tenkan-Sen should be over the Kijun-Sen. In the bearish format, Tenkan-Sen must be below the Kijun-Sen.
The specifications of this strategy are as follows;
- Market type: Trend market
- Symbols: Entire symbols
- Time-frames: All timeframes
- Entry Price:
- Buy Order: Over the Kumo, where price passes the Kumo toward top completely
- Sell Order: Below the Kumo, where price passes the Kumo toward bottom completely
- Confirmations: Hidden Divergence, powerful candlestick pattern, Heikin-Ashi and CCI oscillator
Now let’s check some examples of this strategy.
The Brent price passed the Kumo with a powerful bullish candlestick. The special candlestick confirmed the bullish trend.
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The next example is on the CADCHF price chart. The price has fluctuated until it passed the thin Kumo toward bottom. Tenkan-Sen moved lower than Kijun-Sen as well. The bearish signal was generated with good confirmations.
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Notices
You can download PFOREX Assist app for iOS and other platforms devices to receive these signals instantly, however I have to insist that all the services provided PFOREX are as information, not as suggestion nor advice.
That concludes this session, until next time and another session, take care.