FX:AUDUSD   Australian Dollar / U.S. Dollar
AUDUSD 15m shows triggers when to enter and exit
AUDUSD 1H and $H show Bearish confirmation
Step #1 Wait for the Price to Break and close below the Ichimoku Cloud
Ichimoku cloud trading requires for the price to trade below the Cloud because that’s a bearish signal and potentially the beginning of a new down-trend.
The cloud is built to highlight support and resistance levels and it’s supposed to highlight several layers deep because support and resistance are not a single line drawn in the sand, but several layers deep.
So, when we break above or below the Ichimoku Cloud that signals a deep shift in the market sentiment.
A high probability trade setup requires having more layers of confluence before pulling the trigger.
This brings us to our next requirement for a high probability trade setup.
Step #2 Wait for the Crossover: The Conversion (Blue) Line needs to break below the Base (red) Line.
The price breakout below the Cloud needs to be followed by the crossover of the Conversion Line below the Base Line. Once these two conditions are fulfilled only then we can look to enter a trade.
As you can notice the Ichimoku Cloud indicator is a very complex technical indicator that can be used even as a moving average crossover strategy.
Now, we’re going to lay down a very simple entry technique for the Ichimoku Kinko Hyo trading system.
See below…
Step #3 Sell after the crossover at the opening of the next candle
Ideally, any short trades taken using the Ichimoku strategy are taken when the price is trading below the Cloud. Our team at TGS website has adopted a more conservative approach and added an extra factor of confluence before pulling the trigger on a trade.
So, after the crossover we sell at the opening of the next candle.
Step #4 Place protective stop loss above the breakout candle
The ideal location to hide our protective stop loss is above the high of the breakout candle. This trading technique accomplishes two major things. Here is an example of master candle setup.
Firstly, it’s minimizing significantly the risk of losing big money and secondly, it helps us trade with the market order flow.
Since this is a swing trading strategy we’re looking to capture as much as possible from this presumably new trend and we’ll be looking to trail our stop loss level below the Cloud or exit the position once a new crossover happens in the opposite direction.
The next logical thing we need to establish for the Ichimoku trading system is where to take profits.
See below…
Step #5 Take Profit when the Conversion Line crosses above the Base Line
We only need one simple condition to be satisfied for our take profit strategy.
When the conversion line crosses above the base line we want to take profits and exit our trade.
Alternatively, you can wait until the price breaks below the Cloud but this means risking to lose some parts of your profits. In order to gain more sometimes you have to be willing to lose some.
Note** the above was an example of a SELL trade using the advanced Ichimoku trading strategies. Use the same rules for a BUY trade – but in reverse.


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