November BSI Stock: AWK (NYSE)

November BSI Stock: AWK (NYSE)
Buyer Strength Indicator gave three buy signals for this stock

Get BSI stocks in your email

Get BSI Stocks in your email

Real-time Headlines

Hot News

Forex and Commodities

Technical analysis

googleae94913f8a71cdc1.html

Ichimoku trading strategy

Plus500
Ichimoku is on its own, a money management based trading strategy.  That is why we have chosen to follow it with only small modifications. As you might be aware, the default settings for the Kumo, Tenkan sen, Kijun sen and Chikou Span are 9, 21 and 52 periods. However, we have set up a 13, 34 and 89 periods. The difference resides on that the latter are numbers from the Fibonacci series, and we believe they represent the market sentiment (formation of support and resistances) with more clarity.

For more about Ichimoku theory please visit:

Ichimoku theory

Ichimoku videos

Our strategy is simple and we will show it with examples. We generate three classes of signals for trading:

1.- Weak signals
2.- Neutral signals
3.- Strong signals

Position sizing will be determined by the nature of the signal (i.e. weak, neutral or strong).

1.- Weak signal

Issued when the Tenkan Sen crosses the Kijun Sen on the opposite side of the cloud (e.g. price action on the bull side of the cloud and the cross occurs below the cloud). The Chikou span should agree with this strategy (e.g. must be below the price action if signal is bearish and above the price action if signal is bullish). See figure below:



Weak signal: Tenkan Sen cross under Kijun Sen at point A occurs above the cloud. The sell signal is issued at point B when the price closes below the cloud. At point C the price hits a resistance and presents an opportunity to sell cable. However, since it is a weak signal, our exposure is limited. At the moment of the cross, the Chikou span was located below the price action confirming the signal.
 2.- Neutral signal

Issued when the Tenkan Sen crosses the Kijun Sen inside the cloud. The signal will be released once the price close below or above the cloud. The Chikou span should agree with the strategy (e.g. must be below the price action if signal is bearish and above the price action if signal is bullish).  See figure below:


Neutral signal: Tenkan Sen cross over the Kijun Sen within the cloud. At this time, the Chikou span is above the price action. The buy signal is released once the price closes above the Kumo. A stop loss is set below the Kumo (20pips below) and we take profit when the price touches back the Kijun Sen (point B) - profit: +190pips

3.- Strong signal

Issued when the Tenkan Sen crosses the Kijun Sen on the same side of the cloud (e.g. price action on the bull side of the cloud and the cross occurs above the cloud). The Chikou span should agree with this strategy (e.g. must be below the price action if signal is bearish and above the price action if signal is bullish). See figure below:




Strong signal: Tenkan Sen cross under Kijun Sen at point A occurs below the cloud. The sell signal is issued at point A since price is already below the cloud. The Chikou span was located below the price action confirming the signal. We set a stop loss just above the cloud and take profit when price hits back on the Kijun Sen (point B). Profit: +334 pips





If you have questions or want to trade through us (using this strategy) please contact us