Today, we'll analyze the forex chart of currency pair EURUAD on H4 timeframe using Ichimoku & Bollinger bands indicator. Let's see why it is rising from the last so many days without any major correction.
Here is a technical chart of EURUSD.
Around 13th Sep 2010, price closes above Kumo after tenken-sen crosses Kijun-sen. That was the first signal to buy. At the same time CS also closes above Kumo, therefore, confirming the start of bullish run.
We'll not take any bullish call if CS does not close above kumo.
Now, the bullish signal is also confirmed by Bollinger Bands – signified by Blue dotted line. This is a variant of Bollinger bands used by many others.
From 18th to 21st Sep. 2010, the price tries to come down, but Kijun sen hold them. Kijun sen always acts as support line for price. Result: Strong bullish run.
When to book profit: When price closes below Kijun Sen, that will be right time to book profit & exit. Till then, just ride the bull.
The price will take next support on Kumo line & sometimes, price again starts moving up from there.
For better results, consider daily & weekly chart also to get the idea of support & resistance using Span A & Span B lines of Kumo.
The chart snapshot is taken from MetaTrader software – one of the best free software available for Forex Trading. Provides hundreds of technical indicators. You can also write your own code to analyze the chart.
Hope you'll find this article useful & informative.
If you've got any doubts on this post, just ask below under comments section.