Price Reversal from Tenkan

I would like to share with you the first type of signals produced by the amazing Ichimoku indicator. Today we'll talk about price reversals from Tenkan (Conversion Line). Please look at the 4H chart. I marked the possible entry levels for up and down trends.

Setup for opening Long Trades:
- price is above the cloud
- DMI is above 20-25 and confirms trend market conditions
- price reverses from Tenkan (blue line)
- RSI confirms price reversal
- place a pending order above the high of the signal candle
- place a stop order below the low of the signal candle

Setup for opening Short Trades:
- price is below the cloud
- DMI is above 20-25 and confirms trend market conditions
- price reverses from Tenkan (blue line)
- RSI confirms price reversal
- place a pending order below the low of the signal candle
- place a stop order above the high of the signal candle

For closing trades we can use trailing stop or R/R ratio 1:2 or 1:3.
Money management: risk for a each trade must not be more then 2%.

You can read more about Sunrise Trading Strategy and find information about other trading strategies also.