This is the a different setup on the same Ichimoku template.
Simply put, in Ichimoku system, when Kijun-sen is over Tenkan-sen, it is supposed to be short. But what about price breaking up and cross Kijun-sen line?
That’s what I call divergence in Ichimoku.
Set up check list:
1. Divergence: Kijun-sen line and Tekan-sen line and price action shows opposite direction.
2. Price break Kijun-sen: Price going up and 4h bar has confirmed breaking Kijun-sen line.
3. Kijun-sen then become support. (This is the most important bar in this system). We need to make sure Kijun-sen line then become a support and continue to show the price movement trend.
Stop Loss: If a reverse candle confirmed to re-break the Kijun-sen line, we cut loss.
Take Profit: Use pivot or MA lines to take profit. Lock free trades as usual.
