Ichimoku Kumo Break - Did Anyone Get In On This?

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 kumo break setup doing just that.

Did anyone get in on this?

ichimoku kumo break flat bottom textbook setup 2ndskiesforex.com aug 17th

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Comment by 2ndSkiesForex on August 17, 2012 at 8:58pm

Hello Peter,

My last post on the AU 1hr was two days ago and there were plenty of price action setups to trade that on the pullback with small risk on the 1hr while getting out around these resistance levels (which you'll note I mention in my post from two days ago).

But since the post two days ago - things obviously developed on thurs and fri which I could know ahead of time - just watch how it develops and trade it in real time.

I hear ya on the lower volumes as of late which is why I've been mostly posting lower time frame setups and taking smaller trades myself with smaller targets.  I even talked about this with my course members, however, there have also been some decent swing trades as well, just not as huge.  So have to make adjustments with smaller targets, but also smaller stops.

Anyways, all the best

Kind Regards,

Comment by Gill on August 18, 2012 at 2:17am

Very helpful post thanks Chris. I was only recently looking at the pullback to flat kijun lines. It was on my to do list to look up more about how the kumo shape/pattern helped to figure out things. So you've given me a push thanks.

Looking at the daily.. still looks bullish on daily ? 

Comment by 2ndSkiesForex on August 19, 2012 at 1:36pm

Hello Gill,

Good questions. Regarding the daily, as you may note, I anticipated this pullback and wrote about it last sunday which you can read in my prior ichimoku cloud commentary on the AU.

Although the daily structure still has bullish components to it (price above kumo and kijun), there is also cause for concern, such as the chikou now entering the price line in the wrong direction, price being below the tenkan and also the impulsive selling as of late.  

So there are mixed components, but other than the channel bottom and kijun lining up, not really much to be bullish about.  Would rather wait for a new signal before taking any bullish positions on the daily, but intraday there might be some for both sides.

Hope this helps

Kind Regards,

Comment by Gill on August 21, 2012 at 3:06am

Hi Chris

I'm looking again here now. It seems to have respected the kijun support and the channel line but now it has to get through the tenkan? and would the fact that the chikou is in the channel have any effect? Both the tenkan and kijun are very flat right now. What would signify a nice confirming long... a break of the tenkan? pending order above the tenkan hehehe?


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