High Profits forex Investment – The Ichimoku Turtle Channel Online Forex Currency Trading Strategy With Ichimoku Cloud and MACD Momentum. The “TURTLE CHANNEL” strategy is one of the most profitable strategies to be employed in this most harculean but profitable Business.
Turtles were taught very specifically how to implement a trend-following strategy. The idea is that the “trend is your friend“, so you should BUY futures breaking out to the upside of trading ranges and SELL short downside breakouts.
What is Ichimoku Kumo Cloud ?…
The indicator consists of three lines which have Moving Average functions and an area, called the “Cloud”. The Ichimoku cloud indicator is also sometimes referred to as Ichimoku Kinko Hyo or Kumo Cloud.
When price is above the cloud we have an uptrend (we only trade long), when it is below the cloud we have a downtrend (we only trade short) and when price is inside the cloud we have a neutral situation (no trade).
The projected portion of the cloud can also be used as an indication of future market conditions. The height of the cloud is a representation of volatility, so a thinner cloud would indicate lower volatility, and a thicker cloud will represent stronger areas of support and resistance.
The SSB is the stronger of the two lines and will generally form solid S/R levels.
Markets are said to be bullish when SSA is above SSB, and bearish when SSA is below SSB.
A crossing of SSA and SSB lines (usually triggering a change in the cloud color) is called a Kumo twist and can be a sign of potential trend inversion.
The Ichimoku Turtle Channel Trading Rules
The Ichimoku Turtle Channel Online Forex Currency Trading System Filtered With Ichimoku Cloud and MACD. This strategy is one of the most profitable because:
- It is suitablefor any time frame
- The risk reward ratio is high
- It helps to reduce your risk exposure
- It is very easy to follow.
- Price above Kumo and EMA 100 line
- Price above Yellow Turtle Channel
- MACD Histogram blue color
- Momentum line above 100 level
- RSI line above 50 level
- Signal Trend green bars
- Price below Kumo and EMA 100 line
- Price below Yellow Turtle Channel
- MACD Histogram red color
- Momentum line below 100 level
- RSI line below 50 level
- Signal Trend red bars
Ichimoku Cloud Trading Notes:
Basically, the Cloud confirms an uptrend when price is above the Cloud and a downtrend when price is below the Cloud.
The space within the Cloud is a noise zone and trading here should be avoided. A rally is reinforced when the Cloud is green and a strong downtrend is confirmed by a red Cloud.
The Cloud, thus, is a way to trade with the longer term trend and we can sum up our findings as follow:
- Trend-following trading based on which side of the Cloud price is.
- The Cloud acts as support and resistance during trends.
- It’s a noise zone when price is in the Cloud.