Before World War II, a technical system of trading was developed in Japan known as Ichimoku. Its primary goal was to provide analysis of trade for traders. The system was widely accepted by many traders with ¥ pairs as there was ‘special efficacy’ with it.
Some setups of current trade which are related to the Ichimoku trading system are outlined below.
We have already described The Ichimoku Trading System and the forex indicator. Here are some examples:
The strong stand in US Dollar pairs recently made many traders to feel insecure about the directional biases of currency in the future. This further indicated the monetary stance in accommodation from the commentary of Federal Reserve that may lead to the weakness of US Dollar.
Recently, inflection off in the resistance zone of about 10,000-10,100 in US Dollar further meant a weakness which is likely to be more than the expected events in the environment.
The British Pound as compared to other major currencies compels more when pairing with the US Dollars, due to a more promising situation of fundamental economic in United Kingdom as compared to other countries.
A psychological level test of 1.60 on the GBP-USD currency pair offers traders a possible trade breakout price.
Using this Ichimoku Trading System forex strategy this order was made:
Sell GBP/USD at 1,5795, stop loss 1,593, target 1.561
The price action with regard to Ichimoku analysis is offered by this element setup. Long AUDJPY and Long NZDUSD represent a special effort in trade with ‘risk-on’ and this effort may not materialize in the coming week.
Below is the report of trade for the previous week.
Last week the bottom-side of Kumo set a break threatened by the AUDUSD currency pair which will result in finding some support for permeated markets by larger risk-on move which provides Ichimoku traders an opportunity and an attempt to take part in trade before long-term or larger down-trend development.
Position of trade with long NZDUSD and long AUDJPY
If you look at the position of long NZDUSD and long AUDJPY from last week, both retreated the price immediately leading to initial stop level with ‘stopping out’ within 20 pips of each trades.
Approximately, with an entry of 70 pips with AUDJPY in return, both the trades from the initial move provide favorable condition of +50 pips with NZDUSD.
Due to the unpredictability in market movements, it is very important to point out the facts for the traders.
Therefore most of the expert traders spend much time on “Risk, trade, and money management” and focus their views on these elements where new traders may feel bored discussing about these elements.
Last but not the least, you should be very careful and every risk should be watched be it any trade system like Moving Averages, Elliot Wave, Ichimoku or other technical system.