Last month I have introduced 4h Ichimoku system and using Ichimoku lines as drawn fib lines. This blog will present my trading template based on that system.
My trading template is on 15m chart. I use three main components to enter a trade.
1. 4h and daily Ichimoku lines. Those lines are drawn as support/resistance on the 15m chart.
2. A fast stochastic(Non-lag) using 5 periods.
3. A regular stochastic using 65,20,3 as parameters.
The rule of enter a trade is:
1. Price clearly bounce off a 4h/daily ichimoku line. non-lagging MA confirmed changing trend.
2. Fast Stoch cross at low for long and at high for short.
3. Slow Stoch cross at low for long and at high for short.
Please see this EJ example today.
The blue line EJ bounced off is the 4h Ichimoku Kijun Line. Those three arrows showed conditions 1-3 are met.
Our profit target is next Kijun line if exists. In this chart, it was the pink line(daily Tenkan), total profit is about 80 pips.