Ichimoku Trading Strategies 31-March 2014 #1

Established a new position.

Price action has traded below the kumo cloud recently, coupled with tenkan-sen, kijun-sen and chikou span cutting below the kumo lo. Divergence between the tenkan-sen and kijun-sen reflected increased in volatility in the price action itself.

While price action remains below the kumo lo, it retraces to kijun-sen level. Sufficient strength in price action is required to have the chikou-span cut above the kumo hi. Forward kumo reflected bearish mode and moved lower.

Position is therefore established with stop loss above kumo high, a distant away. Overall risk for this trade in this portfolio remains @ 2%.

Ichimoku Trading Strategies 26-February 2014 #5

Finally, the positions were stopped out and closed.

Looking back, the overall risk initiated for the positions was 2%, and the reward was 4%, it could have been better if it was exited when it hit 6% and more. Again, that is "if"

There is not any other positions. Looking forward to established some in the coming days.

Ichimoku Trading Strategies 26-February 2014 #4

It has been quite some time since I last updated. I was away for a holiday in Europe.

Back to the positions established some time ago, I am still holding to the positions. Well, price action has now penetrated through the cloud, hoovering below the cloud lo. Tenkan-sen has cut below kujun-sen and below the kumo cloud, while kijun-sen remains in the cloud. Chikou span has yet cut below the cloud lo.

Stop loss has now been shifted to cover the positions.

What's next?

Well, I can square off the positions to take profit, which I choose not to, because I am really into "long term" trading.

The next few periods will be critical. As simply as what can happen; price goes lower, price hoovers around this range or price goes up.

I remain optimistic, and look forward to price going up, and will look to enter more position if price action goes above the cloud hi.

Of course, if price goes down, I will be stopped out, and should price hoovers around the range, I may square off all the positions.

Again, it all depends how price action unfolds, what matters most is knowing what to do when it happens.

Ichimoku Trading Strategies 26-February 2014 #3

As discussed previously, added another position near the cloud hi. Price action had gone in the direction of the trades.

The overall risk is 2% of the portfolio. The current reward is approximately 2.8 times the risk. It could have been 3 times if price action is trading near the high for the period.

Squared off 50% of the positions.

While the price action is bullish, with tenkan-sen, kijun-sen and chikou span above the kumo cloud, it should be noted the forward kumo cloud is thin, which has been noted in the previous post.

Stop loss level will be adjusted to reduce the overall risk of the positions.

Depending how the price action unfolds itself, to approach in a conservative manner.

Ichimoku Trading Strategies 26-February 2014 #2

Almost a week since last post.

Price action continued the upward trend sharply after coming into the kumo cloud. It now continues to retreat back to where the kumo cloud hi is.

Tenkan-sen remains above ki-jun sen, and in a converging manner. This usually indicates volatility of the price action decreases.  Chikou span, cutting below the jikun-sen for few periods, recovers to stay above kijun-sen there after. The three lines remain above the Kumo cloud, show signs of the bullishness in the price activity.

However, it is of concern that the forward kumo cloud getting thinner. Support of the bullish trend ahead may diminish. A change of mood may occur should the bullish cloud turn bearish.

Position was added earlier. The view is the bullish cloud support now dictates the current trend. While moving forward, it may be wise to square off some profits. Overall stop loss level has also been adjusted to maintain risk allowance.