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How to trade with Ichimoku Vol.2

Profile photo of YJ Baik - Forex.Today by YJ Baik - Forex.Today

Today is NFP day.

Typically I don’t trade on NFP day.  Thus I thought it may be good to write some more Ichimoku stuff.

I assume you did read my previous post “How to trade with Ichimoku”.   If you didn’t, please find my previous post, and come back here.


To refresh your memory…

There are 4 major elements in Ichimoku chart.

a) Tenkan Line
Add HIGHs and LOWS of the previous 9 candles (including the current one), and divide by 2.

b) Kijun Line
Add HIGHs and LOWS of the previous 26 candles (including the current one), and divide by 2.

c) Chikou Line
Spot the current price and move it 26 candles back

d) Clouds
Formed by Senkou Spam A&B. (I will omit the definitions of Senkou Spams here)


The important thing is… you must develop your own trade rule with these.

Well, there are 2 key trading signals – SanYaku Koten (3 Biggest Buy signal) and SanYaku Anten (3 Biggest Sell signal).

But practically, it is a bit too late to trade based on these signals.


To recap,

SanYaku Koten (3 Biggest Buy signal) is…

a) Tenkan Line > Kijun Line
b) current Candle is above Cloud
c) Chikou Line > 26 old candle


SanYaku Anten is totally reversed.

(And remember, these signals don’t talk about exit…)


Trading Example 1:  Example of trading only with Sanyaku Koten/Anten…


(Well, in the above example, the entries didn’t seem to be “too late”.  But based on my past experience, typically it is too late if we wait for SanYaku Koten/Anten)  But still this is a powerful strategy.


Did you notice that Sanyaku Kouten/Anten wait for 3 conditions to meet.

Some traders don’t want until 3 conditions are met.  But instead, they only wait for 2 conditions to meet.




Trading Example 2: Trading only with Niyaku Koten/Anten…    (In Japanese, “Ni” is 2, and “San” is 3)

So either

a) Tenkan Line > Kijun Line
b) current Candle is above Cloud


a) Tenkan Line > Kijun Line
b) Chikou Line > 26 old candle

for the entry.



Of course, if you like the simplicity, you can simplify all the way to …


Trading Example 3:  Trading only with Clouds <- Nobody does this!  :)


Perhaps the example (though this is the real USDJPY Daily chart) is not good.  Even this stupid strategy doesn’t look too bad…  :)


Below, I will introduce some of the most popular strategy with Ichimoku.



Trading Example 4:  Other Popular Strategy 1


Long Entry (for Short, please reverse everything):

a) Candles > Cloud, and
b) Current Candle crosses Kijun Line up

Current Candle < Tenkan Line, or

Tenkan Line’s angle becomes down


This setup seems to be too many Exit signs…


Perhaps, you could play with this over the weekend, and try to find the best strategy yourself.


Next week, I will post my own Ichimoku Trading System.


YJ Baik – Forex.Today @ Tokyo













2 comments on “How to trade with Ichimoku Vol.2”

  1. Profile photo of Dimitar Ivanov
        November 6, 2015

    10x YJ! You are awesome!

  2. Profile photo of Wayne McDonell
        February 26, 2016

    This could use a webinar and video recording!

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