How to trade Ichimoku Advanced

Here I will show how to utilize MTFA with Ichimoku.

This is a live trade taken 27.07.2016. However, the trade is not based on Ichimoku-Analysis.

Trading Ichimoku will get you into high probability trades. But waiting for the strong signals will get you in late. Let me try to rephrase the last sentance, as you are never too late but mostly too early.

Waiting for the strong signals will make you take the trade with more confirmation. The more confirmation you need, the higher the price is you pay to take the trade. This is what I mean with taking the trade late. More about this in the psychology section.

Once you are in a trade, you can put IKH on your chart and look for additional trades. This way you can add on to an existing prosition and ride the trade with a bigger trade size.

Coming to the charts.

Here I will illustrate how to incorporate the Daily and H4 TF into your decision making process.

While H4 is all green for a short trade, the daily is not really ready for a trade (based on IKH).

All stong singlas are set to go short. Analysis withing the chart.

The daily however shows that price may pause for a while here. CS needs to clear price. Other than

CS the other signals are set for short. But the complete singal is not ready yet. To get the complete

signal CS needs to clear price first. A complete signal wants CS in free space.

Based on this information you may not want to take a trade on H4 TF if you are very conservative. 

However, if you take the trade, you know that price may halt for a while at the current level. You won't get scared of a correction/consolodation period, because you expect it based on the D1 TF.

Having the daily close below KS supports the bearish bias. If CS clears price with todays close, we have all signals in line. Ideally CS should be in open space, meaning there is nothing on its way. But 

the markets are not always giving is picture book trades.

Happy trading,

TT