Ichimoku Trading Strategy - Forex Market Technical Analysis

Ichimoku Trading Strategy

This trading pattern has been developed on the basis of the Candlestick Chart pattern to provide accurate and credible price forecasts. A Japanese Journalist spent more than 30 years to develop and enhance this technique.

Ichimoku trading pattern includes 5 lines; Tenkan-Sen, Kijun-Sen, Senkou-Span A, Senkou-Span B and Chikou-Span. Each of these lines can be calculated from certain formula with different manner and characteristics.

Tenkan-Sen and Kijun-Sen are mostly used together to predict the future direction of market price. Senkou-Span A and B develop an area, called Ichimoku Cloud (Kumo-in Japanese).

Based on the Senkou-Span A and B status, the colour of the Kumo changes. If Senkou-Span A is over Senkou-Span B then it would be green coloured that shows stronger upward direction.

On the other hand, if Senkou-Span B is higher than Senkou-Span A then the colour would be red that indicates stronger downtrend. Chikou-Span is a lagging line that is developed based on previous price movements to show the trend direction.

Ichimoku Trading Strategy

Several Trading Signals can be generated from this powerful pattern.

Our Market Analysis team represents the most valid and accurate Trading Signals by applying diverse techniques and algorithms of Ichimoku trading pattern;

Tenkan-Sen on Kijun-Sen

This type shows reversal spot on a trend based on the position of Tenkan-Sen and Kijun-Sen. The more powerful signal can be derived considering the Kumo position and status.Read More

Price on Kijun-Sen

If market price passes the Kijun-Sen on a spot, then a powerful trading signal will be generated. Based on the position of that spot and other confirmations, the credibility of given signal can be determined.Read More

Ichimoku Cloud Kumo

The Senkou-Span A and B positions can be utilized to specify appropriate prices to place orders. These spots are determined when Senkou-Spans pass each other to the other side.Read More

Chikou-Span on Price

Based on the position and movement of Chikou-Span comparing with market price, suitable Entry Prices can be detected. If Chikou-Span passes the market price, then trader can place and order using other confirmations.Read More

Kumo Cloud Breakout

In case that the market price traverses through Kumo, then a trading signal can be detected. The credibility of this trading signals can be determined based on other confirmations.Read More

Ichimoku Trading Strategy

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