If you’ve been trading or learning to trade for some time, you probably came across the “Ichimoku Cloud” trading indicator. It is also known as Ichimoku Kinko Hyo. Many traders swear by this indicator for Forex and also Binary Options trading. This is one of the indicators that is readily available in the leading binary trading platforms.
Many traders who heard about the buzz behind this indicator also gave up when they got visually confused by it. What if I could reduce that confusion for you?
In my continued quest for trading methods that are easier and safer for traders to use and profit from, I made an observation in how this old indicator can be simplified, and used for consistent trading profit!
Watch the video in this next section to find out!
My Simple Ichimoku Cloud Strategy For 1 Minute Binary Options Trading
This strategy works great on Pocket Option’s OTC market.
You will be surprised, the Pocket Option OTC charts are actually more tradable than the non-OTC charts. They even work better for technical analysis.
We will also be using 5s charts.
The Expiry Time for this strategy is 60s.
Try it out and let me know what you think!
Let me know how this works out for you in the video’s comments section!
What Is The Ichimoku Cloud
The Ichimoku Cloud is popular for trading due to its comprehensive and visual nature, which provides traders with a holistic view of the market. Here are a few reasons why it has gained popularity:
- Clear trend identification: The Ichimoku Cloud consists of several components, including the Kumo (cloud), Tenkan-sen (conversion line), Kijun-sen (base line), and Chikou span (lagging line). These elements work together to help traders identify the direction and strength of a trend, making it easier to determine whether to buy or sell.
- Support and resistance levels: The Kumo, or cloud, formed by two lines (Senkou Span A and Senkou Span B), acts as a dynamic support and resistance zone. Traders look for price action in relation to the cloud to determine potential entry and exit points. The thickness and color of the cloud provide additional insights into the strength of the support or resistance levels.
- Time element: The Chikou span, or lagging line, is plotted on the chart shifted back in time. Traders use this line to assess current price momentum relative to historical price action. If the Chikou span crosses the price action in the opposite direction, it can indicate potential trend reversals or confirmations.
- Multiple signals in one chart: The Ichimoku Cloud combines various indicators into a single chart, eliminating the need for traders to use multiple technical tools. This simplifies the analysis process and offers a comprehensive perspective on market conditions, including trend, support/resistance levels, and potential reversals.
- Versatility across different markets and timeframes: The Ichimoku Cloud can be applied to various financial instruments, such as stocks, forex, commodities, and cryptocurrencies, and works well across different timeframes. This versatility allows traders to adapt the strategy to suit their preferred markets and trading styles.
How Many Lines Do You Really Need To Refer To When Using Ichimoku Cloud For Binary Trading?
The good news is, you don’t really need to use all those Ichimoku Cloud lines in binary trading.
Here’s how I do my settings…
For our purposes, we only need the Span A and Span B. I will be explaining more about the lines – the Tenkan Sen and the Kijun Sen in part 2 of the video!
If you have any questions on this method, you are welcome to comment down below, or in the comment’s section of the Youtube Video!
Walkthrough Video (Just Added!)
Hi! I’ve also added a new walkthrough video using this strategy with martingale. You’ll see a few different possible trading outcomes and how to handle it.
Case Study: How Long Does It Take To Make $50?
Here’s a new case study I just did. It’s as the title says. Using this Ichimoku Cloud + MACD, starting with $10 trades and using martingale, not more than the 3rd level, i.e. $10, $20, $40. FYI, the actual time, less the silences cut out by CapCut, was 14 mins and 45 seconds. Not bad for $50+ profit, aye?
What would be a safe account size to replicate this result? Let’s see, $10+20+40 = 70. If a set of trades were to be abandoned, should not take out more than 10% of the account (conservatively speaking), then you should have an account of $700. Conversely, you are also very safe doing this with $70 and starting at $1, and technically you could make $5 in the same amount of time I took. $20 an hour? Not bad.
However, if you’re much more aggressive, you might consider raising that 10% threshold to 25% and then you would need only an account of $280.
Is it doable? Your next thought might be, what if we amped the risk, but had to abandon the set of trades because the 4th time would take too much. Then, cherry pick your trades. Watch the MACD. See that the MACD candles and increasing in height from one to the next.
In my next case study, I’ll be doing a 1-hour stress test. Watch out for that!
Meanwhile, quick recap.. 5s charts, 1min expiry. OTC Charts (Preferably, for the higher payouts and predictability!) You’ll need Pocket Option for this.
Write me if you need help! (You should already be on my email list).