Market Examples

Market Examples

Example 1:

On this chart, we can see a strong upward momentum. Any short/sell signal on this picture will be considered a false signal. The first Buy signal is right after when the Moving Average crossover happens. However, we are stopped by the short signal for a retest. 

 

The second buy signal indicates a strong upward movement. Since the price is above the Conversion Line and the Baseline. At the same time, the Moving Average crossover already took place. As we mentioned above, the Moving Average crossover signals an entry point for the Ichimoku Cloud strategy. So, as soon as the crossover happens and you get a buy signal above the Moving Average, you may take the trade depending on the condition. 

 

On these trades, we can see that the Conversion line is acting as a support as it consistently holds the price. In this case, you can ride the trend and start trailing your stop-loss at the Baseline or simply move your stop-loss at your entry price for a risk-free trade.

 

The red dotted line shows the stop loss level. This strategy is low risk. However, since the stop loss level is quite close to the entry. You may get stopped out too early, we suggest moving your stop loss according to your risk tolerance. But in most cases, if it's a good trend, the stop loss at the baseline is reasonable.

 

Example 2: 

This is an example of an Ichimoku Cloud setup. Any long/buy signal on this picture will be considered a false signal. The first Sell signal happens before the crossover, and it’s still above the cloud. In this case, we should wait for the candle to move below the cloud before considering taking the Sell signal. 

 

The second Sell signal represents a strong downward momentum. Since the price is below the Conversion Line and the Baseline. At the same time, the Moving Average crossover already took place. Additionally, the trend is currently below the Kumo cloud, indicating a bearish movement. 

 

If you plan to use this strategy, we highly recommend waiting for all of these confirmations and conditions to be met. Which is the crossing over of the moving averages, sell signal, and the price must be below the cloud for a higher chance of winning. 

 

The red dotted line shows the stop loss level. This strategy is low risk. However, since the stop loss level is quite close to the entry. You may get stopped out too early, we suggest moving your stop loss according to your risk tolerance. But in most cases, if it's a good trend the stop loss at the baseline is reasonable.