A good winning trader is defined by the portfolio of forex strategies known and applied in different situations, considering that a single system is not enough to supply the right number of successful trades if you apply it all the time.
In order to come forward to your educational needs, our team has collected numerous resources on trading, ranging from basic ones that involve key principles of indicators and trend lines, to more complex and well developed that use certain advanced indicators like Aiken combined with fundamental factors.
Our collection is available to all users who want to develop their skills and know-how, knowing that on the long run the difference is made by ambition and education. All the information posted is for educational purpose only, and every strategy can be interpreted in a different way by each trader, concepts like money management and risk must be evaluated at every step.
This system can be put in the trend following category. It uses Ichimoku Kinko Hyo, a trend based indicator and a Stochastic that gives the buy and sell signals.
To make our library more accessible depending on the level of knowledge we have sorted our forex trading strategies in categories:
Let us talk now a bit about these two indicators.
Because this system uses Ichimoku as the trend following indicator it would be recommended for the traders to apply this strategy on higher time frames, like 30 minutes, 1 hour and up to a month. The best part of the system is that it can be used on every type of instruments.
First step in using this strategy is to look for a trend. As long as the Ichimoku Cloud is under the current price, the trend is up; on the other hand if the Cloud is above the current price the trend is on a down slope.
Second step would be to follow the price action. When the price enters the Cloud, look for an oversold on the Stochastic.