I like Ichimoku system template. At least it gives me a peaceful and colorful screen.
Kijun-sen Line is calculated based on (HIGHEST HIGH + LOWEST LOW)/2 for the past 26 periods.
I can see it to represent a nice 50% fib line on 4h or 1h chart. (Yes, it is a cheat but I try to keep it simply/lazy so I don’t have to draw it myself. )
However, default triggers from Kijun-sen systems are many times too late. I have combined the fib-line system with Ichimoku Chart and comes up with my own triggers.
This blog will introduce set #1: Attack the second wave
Check list for the entry based on 4h chart only:
1. Tenkan has already crossed Kijun to confirm the trend.
2. Price has trended beyond Tenkan and retrace back to test Kijun.
3. Price has confirmed to have Kijun Support.
Use Kijun-sen as s/l, we enter the trade to attack the second wave.
See following chart for example,
In this chart 4 hour Gbp/Usd, there are there check signs to represent each of the conditions of this trigger.
Note 1: In this chart, there is also a hidden purple dotted line, which is the Gann Indicator. It’s important to monitor that indicator and make sure it didn’t flip to against our trade too close to the Kijun-sen line.
Note 2: Make sure the previous high/low on the same chart do not show MACD divergence.
Note 3: In my trading, I would prefer to have the support of Gann or Ma cross in 4h chart to confirm the bounce.
Here is another example,
