As the title suggests, i would like to share with you a very simple ichimoku system that i've been using with great success to trade the dow(US30) and the S&P 500(US500). After trying footprint charts, price ladders, volume profile, all sorts of breakout systems etc to get success with indices, i finally landed on this extremely simple strategy that uses the simplest indicators and the success has been very overwhelming.
The rules are pretty simple. Buy once HA candle closes above the ichimoku span and above MA, sell once HA candle closes below the ichimoku span and below MA.
I only use it on the M5 timeframe.
Stop Losses
US30 - Between 30 to 50 points depending on volatility (40 is usually a sweet spot)
US500 - Between 2 to 4 points depending on volatility ( 3 points is a sweet spot)
Take Profits
You can use a fixed target of 2RR( risk to reward ratio) but i personally just move my SL to BE once i hit 1RR and let my winners run until the moves are exhausted. A change in the heiken ashi candles is also a good system to use for exits.
The indicators
Ichimoku on 12,29,52 but with only the span A and span B. We dont need the other 3 parts
50 SMA
Heiken Ashi Smoothed
Supply and Demand indicator to show high and low of the day and week and previous turn points
Some things to note
1. The Dow can be extremely volatile at the cash open(9'30am NY time) and usually has stop hunts(also called taking out weak longs) so i tend to give it a few minutes to settle down before i engage it. Thankfully the bigger brother SP500 is usually much more calmer.
2. Always have both charts open at the same time. It will save you from getting out of winners too early.
3. It works on the Dax as well but am yet to backtest it fully. I'll upload the results once i do
4. As is the case with all trading systems, watch out for whipsaws on big news days like NFP and FOMC.
5. Because the forex market is fundamentally different from the world of indices and stocks, I strongly encourage you to learn supply and demand mechanics in order to use this system successfully on currencies.
Backtest and let's share those charts. Glad to have you on board.
The rules are pretty simple. Buy once HA candle closes above the ichimoku span and above MA, sell once HA candle closes below the ichimoku span and below MA.
I only use it on the M5 timeframe.
Stop Losses
US30 - Between 30 to 50 points depending on volatility (40 is usually a sweet spot)
US500 - Between 2 to 4 points depending on volatility ( 3 points is a sweet spot)
Take Profits
You can use a fixed target of 2RR( risk to reward ratio) but i personally just move my SL to BE once i hit 1RR and let my winners run until the moves are exhausted. A change in the heiken ashi candles is also a good system to use for exits.
The indicators
Ichimoku on 12,29,52 but with only the span A and span B. We dont need the other 3 parts
50 SMA
Heiken Ashi Smoothed
Supply and Demand indicator to show high and low of the day and week and previous turn points
Some things to note
1. The Dow can be extremely volatile at the cash open(9'30am NY time) and usually has stop hunts(also called taking out weak longs) so i tend to give it a few minutes to settle down before i engage it. Thankfully the bigger brother SP500 is usually much more calmer.
2. Always have both charts open at the same time. It will save you from getting out of winners too early.
3. It works on the Dax as well but am yet to backtest it fully. I'll upload the results once i do
4. As is the case with all trading systems, watch out for whipsaws on big news days like NFP and FOMC.
5. Because the forex market is fundamentally different from the world of indices and stocks, I strongly encourage you to learn supply and demand mechanics in order to use this system successfully on currencies.
Backtest and let's share those charts. Glad to have you on board.
