Trading strategy using the Ichimoku system when the price cuts Kijun Sen (Part 5)

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Trading strategy using the Ichimoku system when the price cuts Kijun Sen (Part 5)
Trading strategy using the Ichimoku system when the price cuts Kijun Sen (Part 5)

To succeed in the financial market or any other field, you need to learn constantly, hone your knowledge and gain practical experience. And one of the most important things is to know how to build yourself an effective way of trading, using the right way and at the right time to create beautiful trade points with the highest probability of winning.

In today’s article, I will introduce to you a trading strategy using the Ichimoku system used by many professional traders to enter orders when the price cuts the Kijun Sen.

How to enter an order with Ichimoku trading strategy when the price cuts Kijun Sen

This is a trading strategy that has been voted the most effective, by the worldwide community of traders who love the Ichimoku system. It can be used on any timeframe, especially the larger the timeframe, the higher the credibility.

The entry signal appears when the price cuts the Kijun Sen (red). If the price cuts from below, it is a bullish signal. If the price cuts from above, it is a bearish signal.

As with other Ichimoku trading strategies, it is necessary to get a full picture of the market before placing an order. The signals are divided into the following 3 levels.

Strong signal

BUY when the price cuts Kijun Sen from below (above Kumo cloud)

Strong Buy signal when the price cuts Kijun Sen above Kumo cloud
Strong Buy signal when the price cuts Kijun Sen above Kumo cloud

SELL when the price cuts Kijun Sen from above (below Kumo cloud)

Strong Sell signal when the price cuts Kijun Sen below Kumo cloud
Strong Sell signal when the price cuts Kijun Sen below Kumo cloud

Medium signal

Buy when the price cuts Kijun Sen from below inside the Kumo cloud.

Medium Buy signal when the price cuts Kijun Sen inside the Kumo cloud
Medium Buy signal when the price cuts Kijun Sen inside the Kumo cloud

Sell when the price cuts Kijun Sen from above inside the Kumo cloud.

Medium Sell signal when the price cuts Kijun Sen from above inside the Kumo cloud

Weak signal

  • Buy when the price cuts Kijun Sen (under Kumo cloud)
  • Sell when the price cuts Kijun Sen above the Kumo cloud.
Weak Buy and Sell signal when the price cuts Kijun Sen
Weak Buy and Sell signal when the price cuts Kijun Sen

You can combine it with the Chikou Span for additional accuracy similar to that for the Tenken Sen cut Kijun Sen strategy

Specific examples

In the GPB/USD currency pair at point A, the price has started to cut the Kijun Sen from below and is above the Kumo cloud, which is a strong trading signal. At the same time, the Chikou Span (blue line) is above the price, showing that the price still has the force to continue increasing. Then set a stop loss on the lower border of the cloud at point B. When the price starts moving slowly and crosses the Kijun Sen, we exit the position.

Enter a BUY order when the price cuts Kijun Sen from below and the price is above the Kumo cloud
Enter a BUY order when the price cuts Kijun Sen from below and the price is above the Kumo cloud

The above is a very basic setup for traders using Ichimoku to trade. In order not to miss the opportunities from the market, you need to understand your trading method from reading the concepts to testing the strategy thoroughly via the Demo account.

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Trading strategy using the Ichimoku system when the price cuts Kijun Sen (Part 5)
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