Ichimoku & Awesome Oscillator: Reversal Trading
This trading strategy is designed to catch price reversals by combining the cloud component of the Ichimoku Kinko Hyo with the momentum analysis of the Awesome Oscillator. It focuses on the Senkou Span B line as a key pivot point for trend changes on the H1 timeframe.
Strategy Profile
Timeframe
H1 and Above
Pairs
All Pairs
Indicators
Ichimoku + AO
1. Indicator Setup
Apply these two indicators to your chart:
- Ichimoku Kinko Hyo: Default settings. Focus on the Senkou Span B line (the slower Cloud boundary).
- Awesome Oscillator: Default settings.
2. Long Entry (Buy) Rules
- Breakout: A candlestick closes ABOVE the Senkou Span B line.
- Confirmation: The Awesome Oscillator histogram is Green and located above zero.
- Trigger: Enter Buy at the opening of the next candlestick.
3. Short Entry (Sell) Rules
- Breakout: A candlestick closes BELOW the Senkou Span B line.
- Confirmation: The Awesome Oscillator histogram is Red and located below zero.
- Trigger: Enter Sell at the opening of the next candlestick.
Trade Management
- Stop Loss: 5 points below the nearest support (Buy) or above resistance (Sell).
- Take Profit: Equal to the Stop Loss distance (1:1), or at the next major support/resistance level.
Catch the Reversal: Trade Ichimoku signals and earn rebates on every lot.
⚠️ Disclaimer: The content of this article is strictly for informational purposes and does not constitute investment advice. FXRebate is a rebate and affiliate service, not a broker or fund manager; responsibility for trades and funds lies exclusively with the third-party broker. Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. Partner links used do not generate additional costs for you.
