Before Taking the Trade
Fresh Price/Tenkan Sen Cross : WEEKLY TF /Bearish
KUMO Breakout : DAILY TF
100% Bearish Picture : H4 TF
Correction so we can Enter after it : H1 TF
STEP #1 : Looking for a FRESH Price/Tenkan Sen Cross on the highest Time-Frame
Q1 : Is the profile of the pair trending? (KUMO Slope)
Q2 : Is the Price/Tenkan Sen Cross fresh?
Q3 : Is the Price/Tenkan Sen Cross valid?
Q4 : Is there a relatively Fresh Price/Tenkan Sen Cross -to the same direction- on a smaller Time-Frame which will cut our WAITING TIME shorter?
STEP #2 : Looking for a KUMO Breakout on the next lower Time-Frame, to the direction of the P/TS Cross
Q1 : Is the KUMO Breakout telling us anything about the strength of the move? (Slope)
Q2 : Is the KUMO Breakout validated by Chikou Span and Kijun Sen or not? (not a necessary criterion but indicative of move’s strength)
STEP #3 : Looking for 100% picture to the direction of the KUMO Breakout
Q1 : Is the big picture clearly bullish or bearish?
Q2 : Is KUMO sloping?
STEP #4 : WAITING for a correction to start and finish. We Enter after the Correction, to the direction of the P/TS Cross if price has closed above/below Tenkan Sen with Tenkan Sen -ideally Kijun Sen too- sloping to the direction of P/TS Cross, and confirmation from Chikou Span and from leading KUMO morphology.
Q1 : Do we see a Price/Tenkan Sen Cross making a valid correction?
Q2 : Is price moving stronger to the direction of the correction?
Q3 : Which is the highest Time-Frame where price is making a valid correction with P/TS Cross?
Q4 : On the highest Time-Frame where we had a corrective Price/Tenkan Sen Cross do we see a candlestick going to the opposite direction signaling the end of correction?
Q5 : Switching down to the 4th Time-Frame are ALL our Entry Criteria met or some missing?
STEP #5 : We SET our Take-Profit Target based on the Highest Time-Frame – the 1st one- where we had the Fresh Price/Tenkan Sen Cross.
Bearish Price/Tenkan Sen Cross on Highest Time-Frame
1st Level of Take-Profit Target : a few pips above Kijun Sen on Highest TF
2nd Level of Take-Profit Target : a few pips above Upper Border of KUMO on Highest TF
3rd Level of Take-Profit Target : a few pips above Lower Border of KUMO on Highest TF
If price makes a Bearish KUMO Breakout and there is a higher Time-Frame than the one we used as the highest, we adjust our TP Targets to that Time-Frame. If our Highest TF is Monthly, we follow Kijun Sen’s fall from Monthly TF.
Bullish Price/Tenkan Sen Cross on Highest Time-Frame
1st Level of Take-Profit Target : a few pips below Kijun Sen on Highest TF
2nd Level of Take-Profit Target : a few pips below Lower Border of KUMO on Highest TF
3rd Level of Take-Profit Target : a few pips below Upper Border of KUMO on Highest TF
If price makes a Bullish KUMO Breakout and there is a higher Time-Frame than the one we used as the highest, we adjust our TP Targets to that Time-Frame. If our Highest TF is Monthly, we follow Kijun Sen’s upward move from Monthly TF.
Entering the Trade
Entry Criteria on H1 TF :
1. Bearish Candlestick closing below Tenkan Sen on H1 TF
2. Tenkan Sen sloping Downwards
3. Kijun Sen sloping Downwards
4. Chikou Span going Down below past price action
5. Leading KUMO sloping Downwards (sharp edge pointing down)
Entry Policy (surgical precision Entry from M5 after a bearish KUMO Breakout)
Entry Level :
SL Placement :
Managing the Trade
Evaluating Move’s Strength
STAY IN Criteria on H1 TF
SL Trailing on H1 TF
Adding Lots (keep Margin Level fixed)
Switching or not Switching to H4 TF