Ichimoku strategy for trading the forex

Ichimoku Strategy for the 1 min chart

The fundamental of applying ichimoku strategy is to buy when above the cloud and to sell when below the cloud. When you get into position, you keep amending the stop loss level as the cloud changes its level, and let yourself stopped out eventually. This may sounds like a long term trading style. It is however necessary to emphasize its the fundamental, but not compulsory.

The below chart is the 1 min GBPJPY charting yesterday (11-Jan-2016). Applying the ichimoku strategy, 2 trades had been carried out which shall be explained below.

Ichimoku Charting

Ichimoku Strategy on the 1 min chart

Started preparing myself for the trading some time around 08:30pm local time in Singapore. Have a look on the ichimoku charting on the 1 min chart. I placed a stop limit in at location 1 and was triggered. Why not the short? Chikou span not yet below the kumo, neither the tenkan-sen or kijun-sen.

Price action went up. At 2, I actually wanted to close partial position. It was cancelled. (I think its due to trading platform system which does not allow partial closure on same position, and when I have another stop loss level at that position). Nevertheless, I was stopped out at 3. That’s where its below the cloud.

However, I did not go for short immediately. (Hey! Are you contradicting to what you have just said???) Well I have also highlight its the fundamental on Ichimoku Strategy, not the compulsory.

I waited. In fact I placed a stop limit to go long as I thought it was going up at 4. The price action didn’t. It went down instead. Confirmed by the chikou span going below the kumo cloud, I did a market sell at 5. Also cancelling my order at 4.

So what’s next? I placed a target level at 170.95 which is at 6. Price action trended lower in a very nice manner, below the cloud along the way. And it hit the target level 6 finally.

Nevertheless, I was about to close my trade at its was approaching midnight Singapore time.

From the above, the basic fundamental is to go long when price is above the cloud and to go short when price is below the cloud. However, you do not have to executive it immediately. I hope you find the post useful in applying the ichimoku strategy.

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