Trading using the Ichimoku Kinko Hyo indicator.
Pair = EUR/JPY
Time Frame = Daily
Tenkan Sen / Kijun had a strong cross on 8/16, waited for Chikou span to enter open space. Trade is still valid. SL and Max TP are based off backtesting. When OsMA and Parabolic SAR are both positive it is my signal to exit trade. Weekly and Monthly charts both confirm bearish trend.
Entry @ 109.471.
SL @ 111.471 (200 pips)
TP @ 101.471 (800 pips)
Exit when OsMA & Parabolic SAR both change to positive (bullish).
I wonder what the volume read on the previous lower low pinbars. Seems like a downward sloping channel, watch the Support or Resistance, lotta long wicks, and the OsMA is getting smaller so there’s some squeezage going on there. Your stop loss may be too tight, working off the bottom of the Kumo (especially since its flat as hell) might be a better stop loss.
SL is based off the pair’s max drawdown over the past 4 years and part of my money management system. Not that it will continue to follow that for sure, but regardless if it’s going any higher than than that, then I’ll simply take the loss and wait for the next trade.
Note: Any Ichimoku traders, USD/JPY and GBP/JPY are also aligned for a short entry as well. USD being the least volatile and GBP the most (and EUR a bit under GBP).
