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. 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.
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.
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. Also, our analysts usually test a new forex strategy for 6-8 months on demonstration environment before entering live trades, we advise you to do the same.
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.
A better trade entry can significantly improve the risk reward potential of a trade as well as get you a better stop loss placement which can decrease your chances of getting stopped out of a big move in the market.
Remember; limit orders allow you to ‘let the market come to you’ by only entering if the market retraces to a price of your choosing. You have to be prepared to miss the trade, but as we discussed above, the advantages of a better risk reward profile on the trade and increased flexibility in stop loss placement are nothing to sneeze at.
The other big advantage to getting a better entry via a limit order 50% retrace is that it gives you more flexibility in your stop loss placement. You can either take the trade with a tighter stop loss as we discussed above, or you can use a normal distance stop loss . As I discussed in my trade entry trick article linked to in the previous paragraph, using a normal stop loss distance with a limit entry order on a pin bar for example, allows you more ‘breathing room’ in the trade.
As you probably already know, trade entries are very important in determining whether you succeed or fail as a trader. One good trade entry can make or break your month in the market. Yet, traders tend to take trade entries for granted by assuming they are the ‘easy part of trading’ and putting little thought into getting the best trade entries possible.
What are some things you can do to improve your trade entries? Today’s lesson will outline 4 tips for making better trade entries that can help you improve your trading results if you practice them consistently.
One good example of using limit orders to get a better entry price is discussed in my article on ‘the trade entry trick’. The trade entry ‘trick’ is essentially entering a price action signal on an approximate 50% retrace, i.e. entering on a limit order as price retraces to the 50% level of a pin bar for example. This gets you a better entry because it significantly improves the risk reward profile of a trade by allowing you to place a tighter stop loss, making it more likely that you’ll make 2R or more on a trade.
Using limit orders to get better prices
A limit order is a pending order that you place above or below the current market price, depending on which direction you’re trading.
Limit orders give you the power to get into a trade at a price of your choosing.