My favorite technical indicator is the Ichimoku Cloud also referred to as known as “The Cloud.” This indicator is a free plug-in on TradingView, but a trader must know which time frame to use for the indicator. The Ichimoku works best on the 4 Hour bar for forex and today we see a great signal for a mild pullback trader who likes to trade with the trend.
Let’s breakdown the trade:
Short EUR/USD at 1.378 at 12PM CST on the close of the bar
STOP LOSS: 1.3835
Target #1: 50% of the Stop: 1.3752
Target #2: 100% of the Stop: 1.372
Target #3: 150% of the Stop: 1.369
Target #4: 200% of the Stop: 1.3656
Once I hit Target #2, if I want, I can move my stop to breakeven.