Ichimoku Kumo Break – Did Anyone Get In On This?

AUD/USD
Just wanted to do a brief post on this ichimoku kumo break setup for the AUD/USD 4hr chart.  I have always talked about many times that when a kumo break occurs with a flat top/bottom ahead, price will often pullback to that flat top/bottom giving you an ideal setup to trade the kumo break and reversal play.

This is a textbook example of a kumo break setup doing just that.

Did anyone get in on this?

ichimoku kumo break flat bottom textbook setup 2ndskiesforex.com aug 17th

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  • Gabriel

    I actually just noticed this retracement to the flat bottom Kumo a few minutes ago. Did not get into it, unfortunately. That level was also the daily Tenkan-sen.

    • Yeah, it was a good one, textbook with all the conditions in place.

      Next time though amigo

      Kind Regards,
      Chris

  • DV4

    Yes I caught it using another method at 1.05246 stop 1.0545 t1 1.047 t2 1.0405.
    I am about to stop and reverse long around the same level although I now have 3 aud shorts that have hit T1’s and are risk free

    Ideally I would like to try to fade it long then get short again before next week… and then try to find another short a bit higher again

    I am very bearish AUD, possibly down to 1.2250 or even much lower

    • DV4

      I believe there are a bunch of reason to sell aud despite fundamentals, monthly retested broken trendline, weekly forming evening star, daily broken wedge… very near channel support, 4hour Head and shoulders. taken 2 short positions off table still ahve position trade on to 1.0225
      My plan is to fade it long off bottom of channel and support zone, long 1.0403 stop 1.03793, t1 1.0465, t2 1.0520 (??)

      but also look for areas to sell again and get ready for a breakout of channel. if it does, I think it could get to parity pretty easily and possibly down to 0.9780 as it is the daily 61% retrace wedge target cluster

      Time will tell…

  • Matt Johnson

    I have been watching this form for a while. Problem is that at the same time it was forming, there was a pinbar rejection off the 20ema on the daily chart. I took the pinbar setup as the daily chart usually has precedent over the lower time frames.

    But it looks like the 4hr was the one to follow in this case.

    Matt

    • Hello Matt,

      First off, you’re a trained ichimoku trader from my courses – you know these are prime setups.

      But, in regards to the pin bar, notice how the selloff leading to the pin bar was strong, but the pin bar price action bounce was weaker? As in 3 candles bounce did not even take out the high of the last selling candle?

      This + the kumo flat bottom were all communicating a textbook setup.

      Live and learn but hopefully what i’m saying makes sense.

      Kind Regards,
      Chris

  • DV

    Missed my planned long above at 1.0403 stop 1.03793, t1 1.0465, t2 1.0520, canned orders but re-entered short again at 1.0515 targeting 1.0465 and position short target much much lower… will move stops to breakeven once T1 hit to almost guarantee a winner regardless if we get a blow off top in the next week… bias is still bearish