Ichimoku Trading System

[currency tunes]

I have been a regular to babypips from quiet some time and have learnt a great deal from all of you.

I have been trading currencies for past 4 years. It has been a very rewarding experience for me emotionally as well as financially.

I would like to share with you all, a great trading system I have been using.

Kinko Hyo has always been a great visual guide to the market for the traders.
I shall not go into the great details of ichimoku. You can use IchiWiki to see how the ichimoku is constructed. Here, I try to explain the system I have been using with great success for past 2 years.

Success in trading comes to those, who are patient and wait for the right price at the right time to enter a position.
The trading system, am explaing here requires you to wait for "right price at the right time"

Rewards are great, if you learn to be patient. This system can make you thousands of pips in a month. You just have to wait for the right time.

Success rate is about 90% (may be more, there are hardly any losing trades!!).

I use this system only on Daily Charts. (May be it works on hourly but I haven't tried).

So, here it goes:

Pair: Any currency pair.

Time Period: Daily (I use GMT for market open/close)

Tenkan Sen : Green

Kijun Sen : Red

Chikou Span (Lagging Line) : Purple

Cloud : Blue

Entry Signal:

To SELL:

Condition 1: Tenkan Sen below Kijun Sen.
Condition 2: Chikou Span below the Price Line.
Condition 3: Current Price below the Cloud.

To BUY:

Condition 1: Tenkan Sen above Kijun Sen.
Condition 2: Chikou Span above the Price Line.
Condition 3: Current Price above the Cloud.

As soon as ALL 3 conditions are satisfied, enter into the position at the open of next candle. Use 2 lots to enter the position.

EXIT:

To exit, we use Chikou Span (the lagging line).

Mark supports and resistance on the Chikou Span line, just as you would do for the price line.

For LONG position: The support on Chikou Span right below the price you enter is your STOP LOSS level.
The resistance on Chikou Span right above the price you enter is your TAKE PROFIT level.
And vice versa, for SHORT position.

For example, in the chart attached, you can see 1.3985 as my profit target on EUR long position. And, 1.3600 is the stop loss level

If your stop loss level is reached (which is very unlikwly), get out of your 2 lots.

If you take profit level is reached, take out 1 lot and let the other lot run with a trailing stop loss.

As you can see the EUR chart attached, after giving the ENTRY signal at 1.3712, the price after hitting first target of 1.3985, went as high as 1.4700

Well, this is my simple trading system
Everyday, I scan all the currency pairs for this formation on daily charts and enter a position with above mentioned rules.

Only last week, I entered EUR/USD ; USD/CHF and an asian currency USD/SGD, all 3 pairs earning me thousands of pips in a matter of 2 days.

I would appreciate any feedback or questions about this system
Also any suggestions to improve the system are welcome.

I have also started updating all trades that I enter based on Ichimoku Trading System on MeetPips.com — Private Beta and you can find me there with the user name Dealing Room.