Ichimoku Strategy Learn The Ichimoku Trading Strategy At CAPEX.com

At CAPEX.com, we understand an Ichimoku strategy can be difficult to figure out for new traders. The Ichimoku Cloud is an indicator – a chart analyses the market, gives you trading signals, figures out where the momentum is in the market and shows support and resistance to certain trades.

Here, we’ll help you understand the best Ichimoku strategy to use with your new Ichimoku Cloud technology.

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Access to a great selection of CFDs at CAPEX

We provide a great selection of trading instruments for you to use your Ichimoku indicator on. We believe a great Ichimoku strategy is usable across all trading instruments – Forex, bonds, stocks, shares, ETFS, crypto and indices. Our CAPEX.com platform makes it easy to apply any Ichimoku Strategy to any of these instruments, and analyse it to ensure you make a reasonable sized profit. But, in our personal opinion, we believe the fast moving and slightly unstable stocks work better with a great Ichimoku trading strategy.

Forex, stocks and crypto will all work well with a great Ichimoku strategy. With an ability to buy and sell the trade manually whenever you need, or if you wish to set up automatic stop-losses, and take profits to work with your Ichimoku Strategy. We simplify all of this so you can focus on your Ichimoku trading strategy.

Trading platforms that work the best with your strategies

On CAPEX.com, we prioritise the importance of great indicators. A great Ichimoku Strategy has to come with a great Ichimoku Cloud, and on our trading platforms, we provide a great Ichimoku Trading Strategy that you can understand. Once you go to the indicators section of our chart (either the MetaTrader 5, or the CAPEX WebTrader), you can choose whatever indicator you want.

Once you click ‘Ichimoku’, you’ll see how well we present an Ichimoku Strategy to you. With the Tenken and Kijun Sens lines both in bright red and blue, and your Chikou Span in a dark green, everything is made clear and easy to follow. You also have an ability to change the time periods, and – we give you full flexibility, and control over your Ichimoku Strategy. And, most traders will see the benefit of using a good Ichimoku trading Strategy on our CAPEX.com trading platform.

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What is so great about an Ichimoku Trading Strategy?

  • Isolation and analysis: An Ichimoku strategy will isolate the best probability trades in your chosen instrument, and will help you secure them.
  • Tenken and Kijun Sens: Both the Tenken and Kijun Sen line calculate the sum of the highest high and lowest low trades, and divide them by two. The difference is that they take different time periods into account. They both are critical in getting an average in changing trends, and trade entry points
  • Chinoku Span: The Chinoku Line is a line that shows the most recent price action, but compares it to 26 previous trade periods. It helps traders establish an important relationship between current and previous trends.

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Opportunities and risks

Opportunities – the advantages of using Ichimoku Strategies when trading

  • Clarity: An Ichimoku strategy merges three essential indicators onto one graph to provide a clear chart of where the market is heading. The crossover points of the Tenken and Kijun lines are great indicators on knowing a trades value, and provides the trader with enough previous trends for them to make their own calculations. Once you understand an Ichimoku strategy, it helps everything become clearer.
  • Support: A good Ichimoku trading strategy always has failsafes and stop-loss orders in place, like the ones you can use at CAPEX, to allow you to predict when a trade is about to fall off. With ‘the Cloud’ essentially predicting when a trade is about to hit a trend and become profitable, it gives you plenty of time and room to sell before you risk losing too much capital.
  • Direction: An Ichimoku strategy is great at predicting the direction a certain instrument will go. By predicting these trends with certain trades, it’s a great indicator that shows the general direction and intensity of a market moving into the future.

Risks – The pitfalls of over relying on an Ichimoku trading strategy

  • Reliance on historical data: The biggest downfall of an Ichimoku strategy is also an advantage of it. It relies heavily on historical data of previous trends in order to predict current trends. But, as seen in our best Forex trading tips article, trends may not always repeat themselves in a volatile market.
  • Overwhelming: For traders, an Ichimoku cloud often looks chaotic and messy. It can be overwhelming for brand new traders to try take the time to understand what everything in an Ichimoku strategy comprises of, and it does take someone that is extremely focused and dedicated
  • Too narrow: On most occasions, traders will use Ichimoku strategies to focus on smaller time periods, and that’s where a great Ichimoku trading strategy excels. However, the inability to focus on a wider timeframe ultimately limits a great Ichimoku strategy. This can ultimately lead to a number of false signals, if the time period you are focusing on doesn’t have any noticeable trends or shifts.

What CAPEX resources can help me understand how to do an Ichimoku strategy?

At CAPEX, we pride ourselves in offering as much information as we can to help traders. Our resources page is a goldmine for any trader, and when it comes to an Ichimoku strategy, that is no different. Want to really understand what the difference is between the different Senkou Span lines? Just go to our Financial Dictionary. Want to use your Ichimoku Strategy based on previous market changes across a certain instrument? Go to our Market News page, and research the current and previous trends to set up your Ichimoku trading strategy.

Important terms to understand with the Ichimoku Cloud

  • Tenkan sen (red line): A moving average. It calculates the sum of the highest high and lowest low and divides by two, over the last nine periods.
  • Kijun sen (blue line): Similar function to the Tenkan sen. The only difference is it calculates the previous 26 periods, which means it moves slower than the Tenkan sen.
  • Chinoku Span (green line): This line represents the current price action, but it’s shifted to the left by 26 periods.
  • Senkou Span (orange/bright blue): This span is composed of two lines.
    • The first line is the current average of the highs and lows of the Tenken Sen and the Kijun Sen, moved 26 periods to the right.
    • The second line is the middle point between the highest point and the lowest point for 52 periods. This line is also moved 26 periods to the right.
    • ‘The Cloud’ is the area in this chart that both of the above lines operate in. It also represents the further support and resistance level, where it’s recommended you should make your trades

Step by step guide – The buy trading Ichimoku trading strategy

Now that you understand what everything does, we’ll show you the buy trading Ichimoku Strategy.

  1. First of all, look above the ‘Cloud’ for a price strike. If it’s above the Cloud, it’s bullish and potentially the start of a new trend. This means the price is a ‘support’ system. If it was below the cloud, it would be a ‘resistant’ system
  2. The price strike above the Cloud needs to be trailed by an intersection of the Tenken sen line and the Kijun sen line. Now you have all the conditions to buy a trade.
  3. You’re generally in for a long trade now it’s above the Cloud. Buy the trade after the crossover, rather than as soon as it happens. This takes other factors into account, like the stability of the trade.
  4. Put an automatic stop loss, easily done at CAPEX, at the lowest point off the intersection. You’re insuring yourself against a possible crash with minimal risk this way. It also gives you the opportunity to exit the position quickly when another crossover happens.
  5. To be safe, sell when the Tenken sen line crosses underneath the Kijun sen line.


What Ichimoku strategies will work best on CAPEX.com?

We give you the free will and flexibility to use a whole variety of Ichimoku strategies to suit you. If you want to trade non stop, 24 hours a day with a great Ichimoku strategy focusing on crypto and quick trades, we can accommodate for that with our wide selection of cryptocurrencies and an Ichimoku cloud that adapts well to the instrument. If you want to focus on Forex and open more long positions to gain potential bigger profits, with less frequent trades, we can accommodate that.

We have the best possible selection of Forex trades at your disposal, and the best spreads that your Ichimoku Strategy will be able to pick up on, and capitalise on. In short, no matter what direction your Ichimoku trading strategy takes, our CAPEX.com trading platform will accommodate it, as well as all other online trading strategies that you want to use.




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Summary of the buy trading Ichimoku strategy

This strategy is to minimize risk, help you understand the Ichimoku cloud and help you gain profits by identifying the right signals. What’s important about using the buy trading Ichimoku strategy is that you always wait for the Tenken and Kijun sens to intersect.

This is the simplest method to identify and understand the lines, without overcomplicating matters trying to identify earlier signals. In most cases, all Ichimoku strategies require the price to be above the Cloud. More experienced traders will analyse the early points of the Kijun line, and buy early, in order to gain an exponential profit. Some will even analyse the volatility of the Tenken Line, and use that to try to identify if the trade is worth buying at all. Gladly, you can practice with your demo account at CAPEX.

These are all advanced methods that can be found in our How to Swing Trade article.

Conclusion – A great tool that merges everything in one

To wrap up, we believe an Ichimoku strategy could generate some profit. We provide everything to accommodate the Ichimoku cloud. With great software, a wide variety of instruments and plenty of resources to research on, your Ichimoku trading strategy is bound to work if you use our trading platforms. It’s essential you gain a good understanding of how an Ichimoku strategy works, though. Use a simple strategy to start off with, to minimise risk and maximise your chances of a decent profit. Sign up to CAPEX.com now, and use the Ichimoku strategy to give you a clear picture!

Ichimoku Strategy – FAQ

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