Simple trading strategy with Ichimoku when the price cuts Chikou Span (Part 8)

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Simple Ichimoku trading strategy when the price cuts Chikou Span (Part 8)

As many traders think, with such a large Ichimoku system, entry strategies must be more complicated than other methods. But no, you are wrong to think so. There is even an impossibly simple method. Right here, I will introduce to you a very simple trading strategy with Ichimoku when the price cuts Chikou Span (CS).

How to enter an order when the price cuts Chikou Span

This is a trading strategy of the Ichimoku system that is loved by many traders. Because it’s simple but the effect is superior to other methods. How to enter an order is as follows.

– Buy when the price cuts the Chikou Span (blue line) from below.

– Sell when the price cuts the Chikou Span from above.

We can also divide them into 3 main types: strong, medium, and weak. Here I will introduce some examples of strong and medium entry points.

Strong BUY signal when the price cuts Chikou Span
Strong BUY signal when the price cuts Chikou Span

When the price cuts the Chikou Span from below at point A, the current price is at point B. Because CS is the price that has been shifted 26 periods backward. Since B is above the Kumo cloud, it is a strong BUY signal.

Strong SELL entry signal when the price cuts Chikou Span
Strong SELL entry signal when the price cuts Chikou Span

When the price is at C, it cuts the Chikou Span from above. The current price is at point D, which is below the Kumo cloud. So the entry sign at D is a strong SELL signal.

Medium BUY entry signal when price cuts Chikou Span
Medium BUY entry signal when price cuts Chikou Span

The price cuts the CS from below at point E. At the same time, the current price at point F is in the Kumo cloud. So this is an average BUY signal.

Medium SELL entry signal when the price cuts the CS
Medium SELL entry signal when the price cuts the CS

When the price cuts the CS from above at point G, the current price at H is in the Kumo cloud. This is a medium SELL signal.

Specific example

When the price cuts the Chikou Span from above, we have met the SELL entry condition. Looking at the current price at point B, it is now below the Kumo cloud. Therefore, this is considered a strong SELL signal.

Before entering the order, the safest stop loss will be at the top of the Kumo cloud of the entry candle. Finally, when the price starts to cut the CS from below, it is time to exit the order.

Enter an order when the price cuts the Chikou Span
Enter an order when the price cuts the Chikou Span

Through 8 parts about the Ichimoku trading system, I have introduced all the effective ways to trade. There are both difficult and simple methods. Depending on your personality, you can choose for yourself a suitable strategy. You can consider based on the following factors to choose including:

– Account size

– Amount of time that can be spent on trading

– Trading experience

– Habits, personality

– Level of risk tolerance

In particular, please refrain from changing your trading style. Because it can make you trade following no rules at all. And of course, the results will not be as expected. Only change when you feel that the old method is not effective and does not fit your personality and personal schedule.

Good luck and happy trading.

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Simple trading strategy with Ichimoku when the price cuts Chikou Span (Part 8)
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