I am using these 3 indicators on a 30m chart:
* RSI (14-day) - test and fail at 50
* Tenken and Kijun lines with 20sma
* Resistance and support lines
Trade Idea:
* After RSI dipped below 33.33, I look for a bounce up to fail. In this case there is a white resistance line
* 20sma is in the cloud so price could chop, but it is in a downtrend. I pair this with a bearish Tenken crossing below Kijun
* Stochastic is a supporting indicator for me - in this case is showed the potential to continue lower
* Trade is LOW RISK because I buy puts at a price point near resistance so I can exit over the candle high and other nearby stop prices ---> hence my price action risk is very low
Monitoring Trade:
* Watch RSI to see it goes below 50 in next candle (sometimes it takes 2-3 candles)
* Look for confirming candle patterns
* Check that price moves back below 20sma and below Tenken line
* Take profits instead of holding too long in current market
*** I have been using Tenken/Kijun on 30min chart for about 2 months now and find that price often stops at these lines instead of the usual moving averages. I do not use these Ichimoku lines on lower timeframes, as I find the 4-10ema to be more useful for shorter duration day trades.
* RSI (14-day) - test and fail at 50
* Tenken and Kijun lines with 20sma
* Resistance and support lines
Trade Idea:
* After RSI dipped below 33.33, I look for a bounce up to fail. In this case there is a white resistance line
* 20sma is in the cloud so price could chop, but it is in a downtrend. I pair this with a bearish Tenken crossing below Kijun
* Stochastic is a supporting indicator for me - in this case is showed the potential to continue lower
* Trade is LOW RISK because I buy puts at a price point near resistance so I can exit over the candle high and other nearby stop prices ---> hence my price action risk is very low
Monitoring Trade:
* Watch RSI to see it goes below 50 in next candle (sometimes it takes 2-3 candles)
* Look for confirming candle patterns
* Check that price moves back below 20sma and below Tenken line
* Take profits instead of holding too long in current market
*** I have been using Tenken/Kijun on 30min chart for about 2 months now and find that price often stops at these lines instead of the usual moving averages. I do not use these Ichimoku lines on lower timeframes, as I find the 4-10ema to be more useful for shorter duration day trades.
More importantly, if the next candle trades lower we have a "double top an drop" - twice price tested 20sma and failed, and twice RSI tested 50 and failed.