AUDUSD

After closing below the daily Kijun back in late August, the ensuing sell-off stopped midway into the kumo.  It has since then become extremely impulsive (bullish), with the last 4 days reversing and taking out the last 9 days of selling pressure.  This is signaling strength by the bulls and that they have retaken control of the pair.  They will now likely attempt to take out the 1.0600 highs.

From an ichimoku kinko hyo…

EURAUD

Today the EURAUD has formed a daily close and Kumo Break (to the topside) for the first time in exactly two months  Virtually all Ichimoku components are bullish with the chikou having crossed the price line, tenkan above the kijun, the kumo break, thus the only things left are for the tenkan and kijun to pierce through the kumo along with the chikou as…

AUDUSD

Forming an inverted pin bar last Friday to end the week, the AUDUSD sold off strongly today on low volume forming a marubozu candle.  In the process, the pair closed inside the daily kumo with the chikou span crossing the kijun line today which further adds to the bearish Ichimoku picture.

With…

AUDUSD

In my last weeks market commentary, I wrote about the Aussie breaking the Kijun-Sen and closing below it on the daily charts for the 1st time, suggesting short term bearish momentum should take over.  This is exactly how it played out with the pair selling off 3 of the next 4 days while even rejecting off the Kijun.…

AUDUSD

I am going to comment on this pair from an Ichimoku and Price Action perspective.  Ichimoku first.

Although the pair is above the Kumo and Kijun, it has been sandwiched below the Tenkan for 8 days now. By itself this…

EURUSD

For the last  7 days, the price action for the Euro has been stuck inside a 125pip range playing see-saw with the bulls and bears changing color almost daily.  This could be due to typical August / low volatility, investors waiting for their CB's to hit CTRL+P and help Bank Executives save the ailing banks and…

AUD/USD

Just wanted to do a brief post on this ichimoku kumo break setup for the AUD/USD 4hr chart. I have always talked about many times that when a kumo break occurs with a flat top/bottom ahead, price will often pullback to that flat top/bottom giving you an ideal setup to trade the kumo break and reversal play.

This is a textbook example of a …

EURUSD

Gaining for the last 3 out of 4 weeks,  the EURUSD was bolstered by the EU summit as Germany and Frau Merkel caved for now on the ESM support mechanism.  This lifted risk on, along with the Euro which formed a weekly pin bar and cleared an important hurdle of resistance at 1.2632 which was the Jan. 2012 lows.  Near term…

EURUSD

After climbing for almost two sections (17 in ichimoku number theory), the Euro failed to continue gaining, telling us this recovery had little underpinning to it.  The Chikou not only found resistance at the price line (bearish), but also found resistance at an area where it once held as support.  It still has yet to clear the price line, which is one of the few majors failing to do so.  That plus the strong Kumo ahead, along with the…

EURUSD

Looking back at the structure of the price action, the bounce off the yearly lows looks rather corrective in nature, even though there pair was extremely oversold.  The selling was highly impulsive, while the buying (while having its moments), in the larger scheme of things is more corrective in nature.  You can see this reflected in the angle of the price action behind…

AUDUSD

As we mentioned in our weekly forex market commentary, the key area to watch for the Aussie on the upside was the 1.0220/30 area and this held the upside of today's wild ride of price action.  In the process of the day's modest gains, the Chikou span crossed the piercing line which is an additional bullish signal, along…

Earlier I discussed the components that make up the Ichimoku system and now I would like to discuss how to use those components to start trading the system. I will give the basic signals and the most basic analysis for the setups. If you do not know the components please go back and read the blog post,

“Ichimoku Components”

Ok lets get started! The very first thing that you will want to know before trading is the sentiment of the market. We can know that with just one glance at…