Simple and easy Ichimoku Forex trading system – How To Use Ichimoku Cloud To Trade Forex. IBS Reversal Ichimoku Trading System is a strategy based on the volatility and momentum. The main indicator is Ichimoku Kinko Hyo, IBS filtered by ATR, s-Stoch, and Momentum .
Ichimoku Kinko Hyo is designed to help traders identify and trade with the dominant trend.
The lines look quite complicated on the chart but they can be easily used as part of an automated trading strategy.
The most unusual thing about the Ichimoku is the cloud.
The cloud is a slow moving area on the chart that helps to identify the trend and provides support and resistance.
The cloud is made up of two lines: Senkou A and Senkou B.
Senkou A is the fastest and makes the inner edge of the cloud. Senkou B is slower and makes the outer edge.
IBS Reversal Ichimoku Forex Trading Rules
There is one indicator that clearly illustrates the current trend, helps you time entries, displays support and resistance, clarifies momentum, and shows you when a trend has likely reversed.
That indicator is Ichimoku Kinko Hyo or more casually known as Ichimoku.
- Best Time Frame : 15 min or higher.
- Financial markets: any.
This forex strategy is also good for trading with binary options high/low.
Sessions for trading 15 min time frame are London and New York.
- Ichimoku Kinko Hyo
- IBS (RSI 14, RSI coef 9), (CCI 14, coef 1.0), (VkWB 25)
- Signal Trend
- Price upward above Ichimoku KUMO and Tenkan-Sen
- The IBS crosses upward the 0 level or the red line.
- S-Stochastic upward
- Yellow line momentum indicator upward and above 0 line
- SignalTrend blue color.
- Price downward below Ichimoku KUMO and Tenkan-Sen
- The IBS crosses downward the 0 level or the red line.
- S-Stochastic upward
- Yellow line momentum indicator downward and below 0 line
- SignalTrend red color.
Always Start With the Ichimoku Cloud (Kumo)
The cloud is composed of two dynamic lines that are meant to serve multiple functions.
However, the primary purpose of the cloud is to help you identify the trend of current price in relation to past price action.
Given that protecting your capital is the main battle every trader must face, the cloud helps you to place stops and recognize when you should be bullish or bearish.
Many traders will focus on candlesticks or price action analysis around the cloud to see if a decisive reversal or continuation pattern is taking shape.