Ichimoku Learning: Cloud bound Zigzag Pattern

I took a Scalping Trade last night (my night, since I’m in Australia, it should have been your day if you’re based in US / EU) on NASDAQ Future Index and thought to post the chart to explain more about the Ichimoku Patterns I’m studying / researching these days.

I’ve posted this particular Pattern earlier as well and I’ve found this one to be highly accurate and profitable. Basically what you’re looking for is:

  1. Previous Trend which is Bullish in this scenario
  2. Range Bound Flat Trading for a while
  3. A Weak or Average Tenkan-Sen / Kijun-Sen Crossover
  4. Chikou-Span supporting that Weak or Average Crossover (by turning Bearish in this example)
  5. Price enters into Kumo Cloud
  6. Price forms a ZIGZAG pattern inside the Cloud (give allowance of few candles)
  7. Price gives up against the Kumo Cloud and finally breaks the Support (the place I’ve entered into a Short Trade)
  8. Chikou-Span provides further confirmation in that direction

Hope you find it useful …

Posted January 1, 2010 by ichi360. Comments and trackbacks are open. Follow the comments feed.
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2 Responses to “Ichimoku Learning: Cloud bound Zigzag Pattern”

  1. Daniel says:
    January 4, 2010 at 04:38

    I did the same thing in the same period but on Eur/USD. The result was a nice +50 ps.

  2. ichi360 says:
    January 5, 2010 at 10:26

    Good on you Daniel

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