Tuesday, May 29, 2012

NZDUSD Ichimoku Trading Strategy (Long)















Was searching around for trading opportunities and found one in the Kiwi.

Again, this is just one of the ichimoku trading concepts.

In general, the trend was downwards for the kiwi, as price has been trading below the kumo cloud. tenkan-sen has been trending below the kijun-sen.

However, tenkan-sen crossed above the kijun-sen at area 1, more important, price is trading above the tenkan-sen. This is general the first signal for any trend change, and relatively weak signal to go long.

The chikou-span, also provide some support to this first long signal, by cutting above the tenkan-sen at area 2.

Established a small position to long the kiwi.

Stop loss is placed below the nearest low as seen by the red line.

Some opportunities to add on position

  • Chikou span cut above the kijun-sen
  • Price penetrated into the kumo cloud and out of the top of the kumo cloud.
  • Chikou span cut above the top of the kumo cloud

ciao

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