Advanced Spread betting system- Heiken Ashi and Ichimoku cloud
I found this strategy on Forex factory. I have tried it on smaller time frames, but will run the spread betting system on a higher Time frame. This system is part of the Advanced spread betting system as those who apply it should have some understanding of the Ichimoku Kinko Hyo (Ichimoku cloud) charts and the Heiken Ashi charts. I have added a brief explanation in the technical Indicator section.
Description
This is a relatively easy spread betting system. It requires a lot of patience, as more indicators you use the greater the patience needed for the signal to occur. I applied this strategy on the GBPJPY.
Spread-betting long:
The signal: Wait for the Heiken Ashi candlestick bust be above and close above the Kumo. Once the Tenkan Sen has crossed above the Kijun Sen; The Chikou Span must be above the prices and heading higher. Instead in the cloud, the Senkou Span-A would have crossed above the Senkou Span-B; Heiken Ashi candlestick must be positive blue candle.
For those that have a higher risk tolerance they can ignore the Chikou Span.
Spread-betting short:
On the other hand we have a spread bet short which is completely the opposite to the spread betting long. Entry signal would be:
Wait for the Heiken Ashi candlestick bust be below and close below the Kumo. The Tenkan Sen would have crossed the Kijun Sen to the downside; the Chikou Span must be below the prices and heading lower. Instead in the cloud, the Senkou Span A would have crossed the Senkou Span B to the downside; Heiken Ashi candlestick must be a negative red candle.
Your exit strategy:
You will exit either when your money management rules, tell you. Do not risk more than 2-5% of your account or if the trade goes your way wait for the Tenkan Sen to cross the Kijun Sen in the opposite direction.
This is a trend following strategy so you want to try stay in as long as possible.
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Time frame: 1Hr
Tag: GBPJPY
Indicators used : Ichimoku Kinko Hyo (Ichimoku cloud) and the Heiken Ashi charts.
Charts used: GBPJPY
Type:Trend
Timeframe of trade: Swing
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