Ichimoku & Awesome Oscillator: Reversal Trading

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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

  1. Breakout: A candlestick closes ABOVE the Senkou Span B line.
  2. Confirmation: The Awesome Oscillator histogram is Green and located above zero.
  3. Trigger: Enter Buy at the opening of the next candlestick.
Ichimoku Awesome Oscillator Buy Strategy
Figure 1: Buy Signal – Break above Senkou Span B with positive AO

3. Short Entry (Sell) Rules

  1. Breakout: A candlestick closes BELOW the Senkou Span B line.
  2. Confirmation: The Awesome Oscillator histogram is Red and located below zero.
  3. Trigger: Enter Sell at the opening of the next candlestick.
Ichimoku Awesome Oscillator Sell Strategy
Figure 2: Sell Signal – Break below Senkou Span B with negative AO

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.

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