How to trade Ichimoku Indicator ?

Ichimoku Kinko Hyo is a great Forex trading strategy that has been traded by Forex participants for many years ago. Ichimoku kinko hyo trend indicator consists two MA trend indicator and a cloud to show a better analyze of potential market price action. Ichimoku Kinko Hyo Forex indicator is built using 50% point of the lows and highs to candlestick's closing price.

The ichimoku clouds let us to identify the market price action. How to trade Ichimoku Kinko Hyo trend indicator
Buy entry
- If the kumo cloud is under the market price.
- Kikun sen is bellow tenkan sen
- Market price action is below chikou line
- Entry trade isn't more than 150 pips away from the tenkan sen.

Ichimoku Trading example
The Ichimoku trend indicator presents a strong signal to short position as market price trade reverse under the cloud. Market price has been bellow the cloud. We also notice that the tenkan sen is pending a cross under the kijun sen which gives a bearish or sell opportunity. The rejection of the bullish move in the middle of the cloud gives a opportunity to open short position in the way of the market trend.

The Ichimoku Kinko Hyo is great trend indicator, another important component of ichimoku kinko hyo indicator is the chikou span. The chikou span is the teal line which is last market price plotted back 26 periods. The purpose of Chikou is to bring you a picture of whether or not market price is lower or higher than it was 26 days on month ago.

When the chikou is traded above the cloud, it is uptrend for the forex pair. The trigger line is also above the chikou even the market price touched and reversed the chikou line before.