Ichimoku Trading Setups

Ichimoku is one of the most powerful and complete technical trading systems used by many professional traders. This advanced system has a long history running way back to World War II.

This article depicts some of the trading setups available on the current market to give you some examples of how the ichimoku cloud could be used to trade and spot opportunities.

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EUR/AUD
Short EURAUD @ Current Market Price
Stop @ 1.4460
Profit Target @ 1.3860

Euro/Aussie Dollar
This pair continues to remain bearish after failed to break the 1400 key level early September. Which means we can look for a possible short entry targeting July low 1.3860.

From the Ichimoku perspective, short entry confirmed as pair trade below bottom Kumo. By placing a stop loss near 1.4460 we can target 1.3860 for a good R/R ratio as the flat top on the kumo should hold as resistance, so this would be similar to a kumo break setup.

AUD/USD
Long AUDUSD Entry Order @ 0.9403
Stop @ 0.9330
Profit Target Over 0.9500

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On near term there is a high possibility for AUDUSD to reach the 0.95 key level as the kumo is still rising, and the tenkan and kijun lines are stable with an upward bias while the chikout is above the price line. By looking at the 4hr Ichimoku chart we can look for possible long trade above 0.9390 round number to avoid from false breakouts. By placing a stop loss near 0.9290 we can target over the 0.95 key level with a solid R/R ratio.

Australian Dollar to USD