Price moved upwards after the released of news (US durables ex. transport.) Placed a stop in order for long, got triggered. New high was established. However, there was no strength in the momentum. Price retraced backwards. Half of the position was square off with the remaining being stopped out.
A short position was established accordingly. Similarly, new low was established. However, the joy was short lived. Price retraced upwards. Square off the position when price traded the top of the kumo cloud.
A day with losses.
While ichimoku charting is used as a trend following charting, there is a need to look into the price action established before the market start.
Similarly, the price action that follows through need to further examine if there is need to stay in the trade or stay out of the trade.
Started well with long position when the price traded above the ichimoku kumo cloud from below. This was furthered confirmed by tenkan-sen cutting the kijun-sen, and chikou-sen cutting above kumo cloud from below.
Partial position was sold off as price traded near the top of kumo cloud. The remaining position was closed out and the price penetrated into the kumo cloud.
A short position was initiated @ 1.4513. However it was not triggered.
A short (& smaller) position was established @ 1.4522. Though the price traded below the ichimoku kumo cloud, this was NOT confirmed by tenkan-sen and kijun-sen, chikou-sen had also not traded below the kumo cloud. This position was closed out with a loss.