It is possible to use Ichimoku in your scalping. First, you want to play a little bit with parameteres. You can go with default ones:
Some people like to change it to faster: 7, 22, 44. Yes, they are faster, but they give you also more false signals.
I like the other approach whith longer settings 9, 68, 177 like below:
As a result, you have less false signals.
It is Ichimoku so you have many signals from it. Cloud works as support, resistance. Same situation with Kijun line. Thanks to that you have many valuable information:
As you can see above, it was best to wait for a breakout above cloud and Kijun line.
Ichimoku can give you good signals when you are in a trade. If you want it to keep your trade really short then you can close it after it crosses with Tenkan-Sen (shorter average). If you hope to catch a bigger move, you can wait for a cross with the longer average which is Kijun-Sen. Just like in the example below:
Of course, there are many more ways to use Ichimoku in your scalping. I traded witch Ichimoku for a long time (I started my trading career with it). I have few tips:
Do not be afraid to join Ichimoku with Indicators
Some people are against it, but I think it is ok. Sometimes Ichimoku can be too slow or you can have mixed picture of the current situation in the market. I like to join Ichimoku with MACD, CCI or Stochastic.
Do not use crosses
Crosses (Tenkan and Kijun) are useless. These are not good signals to open or close the trade. Learn to use Kijun and Tenkan as support and resistance lines.
Remember about higher time frame
Sometimes Ichimoku can give you mixed signals. The best way is to check higher time frames. When you trade on 1m then you check 5m, 15m and higher. What to look for? What is the current trend, where are important support and resistance levels, where are important averages…
Higher time frames should give you a better understanding of the situation.
Remember about support / resistance lines
Form current time frame and higher time frames. They give you potential entry and exit points.
Join Ichimoku with Pivot lines
Similar to support and resistance lines. You can close your trade in the best possible place before price turns over.
Basic info about day trading:
- Forex scalping and day trading for beginners
- Best Forex broker, fx pairs, trading hours for scalping and day trading
- Day trading Bitcoin
- Forex scalping and day trading without indicators
- Time frames in day trading
- Trading desk
Management in day trading:
Indicators in day trading
- Forex ATR – trailing stop loss
- Forex Parabolic SAR
- Moving averages
- Bollinger bands
- Fibonacci retracement
- Support and resistance, Pivot Points