Ichimoku Strategy applied to 4hr period
We have been discussing ichimoku strategy for on 1 min period charting. How about 4hr period charting? Can we do the same? The answer is yes. The principles remain the same, to long when above the cloud, to short when below the cloud. Again, that is not to say to immediately go long when above the cloud, or immediately go short when below the cloud.
I have recently taken a position in USDCAD. There is another aspect in which I have chosen the Canadian dollars. It is related to OIL! Crude oil price has been in the news since its fall from its peak in year 2014. Iran is going to add the number of barrels per day for oil production. Saudi Arabia insistent not to cut production number. Global economy remains fragile ahead. All these add pressure to the oil price to be lower.
At the beginning of the year, the price action of USDCAD began to emerge from the cloud. Tenkan-sen and kijun-sen were both above the cloud, and together with the chikou span. The forward cloud reflected a thin bearish one. With the fundamental structure of the oil price mentioned earlier, I decided to go long with USDCAD. A very basic ichimoku strategy, to long when price above the cloud.
It is now about 2 weeks since the position established. Price action has moved upwards in quite a gradual manner. The price action has been above the kijun-sen all the while, and has bounced off when it touched kijun-sen. The cloud forward remains bullish and thick, providing the support required. I have placed a trailing stop with 300++ pips lock in and also a target level at 1.4600. Depending how the price action reveals itself as the time passes by, I may or may not adjust the target price level.
The trend is your friend, follow the trend.