Avoid the trap of false reversals Ichimoku

Amount available: There are many elements in the Ichimoku. Each part has its own role. This article will talk about the critical elements of Ichimoku that can help you to confirm whether a trend is likely to reverse or not. Using Ichimoku as a tool to confirm trend reversal, you can avoid that trap trades of other traders. Being able to identify and avoid wrong turns, you can jump on a trend the best possible entry points.
"I think we make more money on the market downturns. Everybody says that because of heavy losses in trying to find the peaks and troughs and the money we earn by playing the trend environment. Well for twelve years, I have not gained much in the middle, but I won a lot of money with the peaks and troughs. "
Paul Tudor Jones, Founder of Tudor Investment Corporation
There is a clear reason why trader traders want reversals. There is plenty of money to be when you find the right turning and you keep it to the end. Many traders will even tell you the trading turnaround is a dangerous game that is best left to others.
However, the system trend trading indicator called "a glance" where Ichimoku can help you with this winning configuration. Although no person or indicator can not guarantee that you will find each correctly reversal of each market, the filter factor of the Ichimoku play a key role. Lately, due qu'Ichimoku works on all periods of time with all the instruments, you can use the clear appearance of the Ichimoku to trade as you want on the time period you like trader.
The fractal nature of the markets & Ichimoku
That the market is fractal is a way of saying that markets tend to jeopardize configurations very similar prices on multiple time periods. This means that a graph of trading could be a configuration spark a minute, a day or a month, which shows the price and configuration of identical trade. This is useful for you because whatever your preference on how long to keep the trade, this lesson can work for you.
Learn Forex: The fractal nature of Forex means there are opportunities for everyone

 Presented by FXCM Marketscope charts

 Above you see the same currency pair $ USDJPY with a configuration similar trade seller over several periods of time. The first graph on the left, a 15-minute chart, you actually get in and out on a trading day. The second graph with candles 4 hours will keep you trade on a temporary basis with an open trade for 1-2 weeks.

The purpose of this information is that the reversals, which often create new trends may occur in the time period you prefer. Now that you know that it can be used on all the time periods we can look for Ichimoku factors that help us to capture trends earlier in the downturn.

 Use Cloud & the waiting line and set to target reversals

 By trading with Ichimoku, we must first look at the cloud to understand the current trend. When the price is a break of one side or the other of the cloud, we begin to look for a reversal. However, the downturn is not over until we have a confirmation signal that we only receive the waiting line.

 Learn Forex: A break in the price beyond the cloud is not in itself a complete signal

 

 

  Présenté par les graphiques Marketscope FXCM

As you can imagine, traders want to buy the dips in the AUDUSD since it fell below 1.0200 in April. In the graph above, you can see the strong tendency of the pair, who made ​​only short breaks in its descent towards 0.9150. The important thing here is this: when many traders believed that the hollow was formed, they are probably entered a horrible price, which is widely available on their lower capital account.

The use line delayed as confirmation tool can be of immense help you in patterns like this, and many others. On the chart of AUDUSD above, you could either stay away or not to buy AUDUSD because did not receive a positive confirmation for your account. Instead, you could develop your short position as a false signal in one direction is a good signal in the other, but in both cases, the delay line is a very good tool, another plus in your game, and a method to prevent you from entering a simple trend correction, not a 

 reversal.

What a line delayed?

The delay line is the close of the current bar, and compares it to being up to 26 times before, to give you a good idea of ​​the strength or weakness of a currency pair. Earlier, we mentioned that the trading patterns transcend all times so you can trade on the period that suits you best. The line will be delayed 26 minutes, hours or days behind the current candle in the graph in which you trade, and it will still work as well.

Weekly Ichimoku Trade: SELL GBPUSD with delayed & online courses below the cloud

Presented by FXCM Marketscope charts

Ichimoku Trading: GBP USD sales, like all Ichimoku rules are met for a trade seller 

Stop: 1.5575 (bearish & hollow cloud above the baseline) 

Limit: 1.5125 (at current prices, up to 1.75 times our limit our risk) 

There has been much talk about the recent strengthening of GBP in recent weeks, but the USD was stronger still, a relative point of view. This is largely a consequence of the fact that the Federal Reserve has stated that a stronger economy is formed, which reduces the need for quantitative easing ... Even those who have made the USD remained low recently. If QE really coming to an end in the United States, many traders try to buy the USD on all markets, against weaker currencies.