Ichimoku Clouds & Trading

[Obsidian 10]

I usually prefer following the trend and I don't have so much time to sit in front of computer for scalping. After years of trading I think ichimoku is more helpful than other indicators to identify the trend. Ichimoku has many components but I don't like too many stuff on my screen so I just use clouds. Since I find this a better way of trading, thought I should say something about this nice piece of art

 

If people want to learn all details about ichimoku, you can google "nicole elliott ichimoku charts" and download the pdf file...

 

How I trade using ichimoku:

First of all, I consider that the trend is UP when prices are above the Cloud, DOWN when prices are below the Cloud and FLAT when prices are in the Cloud. In other words, I go only long when prices are above the Cloud, go only short when prices are below the Cloud and do basically nothing when prices are in the Cloud.

 

I use 2 charts: 4hour and 30min

I use 4hour chart to see the trend and enter long-term trades

I use 30mins to open positions

 

Of course every extra information helps; trendlines, pattern formations etc...

 

Here is an example:

usd/chf:

-breaks trendline, re-tests it, price is above the cloud.

-i wait for entry on 30m chart (price should move above the cloud)

the rest is patience...patience.......

[Mysticforex 13]

Do you use the Cloud for SL?... say a close back inside the Cloud?, on the other side of the Cloud?

 

The reason I ask is I have just started using Ichimoku Cloud 2 - 3 months ago.

[Obsidian 10]

Do you use the Cloud for SL?... say a close back inside the Cloud?, on the other side of the Cloud?

 

The reason I ask is I have just started using Ichimoku Cloud 2 - 3 months ago.

 

Actually they supply good entry points since they act as support or resistance.

SL is other side of the cloud

[Koopa 10]

 

If people want to learn all details about ichimoku, you can google "nicole elliott ichimoku charts" and download the pdf file...

 

If you like Nicole's work, shouldn't you advise people to BUY her book instead of downloading some pdf version ?

[thachtucp 10]

Hi Obsidian!

I like Nicole's Book too. By using Ichimoku for trading, that's mean you are trend trading, so how do you set SL and Profit target for entries (or move stops). I'm using Ichimoku system for trading, and use Kinjun Sen for stop. In your setup of trade, you use only cloud, do you think It could be high downdraw when trend have been change.

 

USDCHF is good for long at this time.

[bobcollett 10]

Dear Obsidian

We agree . Clouds are not for scalping.They lag too much.

But even swing trades will give up half their profits because the cloud seldom catches up with price until the price turns.

So what is your exit strategy?When do you decide to sell? When price is back in the cloud?

Kind regards

bobc

[Obsidian 10]

Hi Obsidian!

I like Nicole's Book too. By using Ichimoku for trading, that's mean you are trend trading, so how do you set SL and Profit target for entries (or move stops). I'm using Ichimoku system for trading, and use Kinjun Sen for stop. In your setup of trade, you use only cloud, do you think It could be high downdraw when trend have been change.

 

USDCHF is good for long at this time.

 

USD/CHF did great but losing momentum. I closed at 0.9440. Keep an eye on GBP/CHF as well...

 

trend reversals may be a bit tricky but candles, trendlines and s/r levels help a lot.

 

Dear Obsidian

We agree . Clouds are not for scalping.They lag too much.

But even swing trades will give up half their profits because the cloud seldom catches up with price until the price turns.

So what is your exit strategy?When do you decide to sell? When price is back in the cloud?

Kind regards

bobc

 

Clouds (on 4hour chart) are mainly for following the trend. that is why I am using 2 different time frames. Profit targets depends, I usually decide according to important s/r zones. But if I see stronger (or weaker) movement, I adjust my targets...

for example the reason I closed usd/chf (image @ post #1) was it formed a shooting star after failing at 0.9474 resistance.

 

For more explanation I will try to post some images when I open new positions

[Obsidian 10]

another example...eur/jpy

[Obsidian 10]

here is another one...aud/usd

[Obsidian 10]

another one.....eur/usd

[Obsidian 10]

EUR/USD 30M chart...just attached another ichimoku indicator to see 4H situation...

(using 4H clouds to identify the trend, using 30m clouds to enter the trade in the same direction)

[Obsidian 10]

another example

(when prices above the kumo, buying is preffered)

GBP/USD 30m chart, also attached 4h ichi on it

[Obsidian 10]

another example

(when the pair trades below the kumo, selling is preferred)

USD/CHF 30m chart, also attached 4h ichimoku on it

[Obsidian 10]

another example, wish I had extra time to post this real time...

trend line, ichimoku, candlestick (shooting star) all together

[Obsidian 10]

USD/CAD chart:

(using 4H clouds to identify the trend, using 30m clouds to enter the trade in the same direction)