Binary options ichimoku strategy
Today I am binary options ichimoku strategy to explain you what is Ichimoku Kinko Hyo and how to trade it. Moreover, I will show you how I trade a combination of Ichimoku Kinko Hyo with volume spread analysis as Binary options ichimoku strategy said in my previous articles.
Ichimoku is an indicator and there is in every platform. First of all, take a look in the first screen shot binary options ichimoku strategy how this indicator look like. I am working in a 5min chart. The upper line of Kumo is senkou span A and the other one the senkou span B. The blue line which look like a moving average is the Kijun and the red one the tankan.
Last, the green one is the chinkou. Maybe you are confused right now but I am going to explain how this complicated thing is a very strong tool for the technical analysis.
There are many theories and trading systems around this indicator and I will tell you the basics and how I use this with volume and price action. Binary options ichimoku strategy of all, you should know that Ichimoku works better in trending markets and If you are able to catch a trend from binary options ichimoku strategy beginning in financial products like Spread Bets, Spot Forex you will earn good money.
You can also use it in Binary Options but I recommend longer expiries. If the price is above the Kumo there is a bullish activity in the market and an up-trend.
If the price is below the Kumo there is a bearish activity in the market and a down- trend. Maybe, it will be the beginning of a new trend. In the first blue binary options ichimoku strategy the price broke the Kumo and we have an up- trend. In the second blue box the price broke the Kumo senkou B and we have a mini- down trend. Another theory for the Ichimoku is about the Tenkan- Kijun Crossovers.
When the tankan the red is above the Kijun the blue we have a bullish market. On the other hand when Kijun is above Tenkan there is a bearish market. So, with a crossover of these two we can take long or short signals. In this screen shot you can see a crossover and after it the Kijun is above so we have a short signal.
Some traders use Ichimoku to identify supports and resistances. The price is moving down and the chinkou the green one acts as a support.
Kumo break If the price is above the Kumo there is a bullish activity in the market and an up-trend.