How to use the Ichimoku Cloud indicator while trading?
As mentioned yesterday we will be going over Ichimoku Cloud trading structure, which does not need any extra pointers on the chart. This Ichimoku trading strategy is relevant for every trading instrument and timeframe. Placing a trade when the price closes outside the cloud This technique could also be coined the Ichimoku Breakout Trading Strategy . This is because the trade trigger occurs at the point the price breaks through the cloud. First, you open your trade in the direction of the respective breakout and then hold the position until the security breaches the Kijun Sen (blue line) on a closing basis. Sequence of Events When analysing the price action for potential trade entries, we walked through the following sequence of events: First , the price of Intel goes through the Tenkan Sen (red) and Kijun Sen (blue) in a bullish fashion. Although these indications are bullish, we still need extra approval to take a long position. Second , the price o...