Consider following a short trade if the price falls below .6328, provided that such a trade is in accordance with your written trading plan and the Chkou is in open space.
 
This is not an invitation to trade but simply to enable you to understand levels of support and resistance using Ichimoku

Short AUDUSD

The Lagging Span (Chikou Span) &nbsp;is a line of the most recent price action and plotted back 26 trading periods. I use the Trend Line tool in Finlogix to easily identify where the Lagging Line is at any point on the chart and on all time periods.
 
I use the Lagging Line as a filter. I will not take a trade unless the Lagging Line is in "free space". That means it cannot be within 5 periods of the price nor the Ichimoku Cloud. It must not also be within price nor within the Ichimoku Cloud.

Trend Line tool can measure periods - I use it to measure 26 periods from last price action = Lagging Span

This analysis is after the event and therefore has the benefit of hindsight. However I want to explain how I use Ichimoku on a 4 hour chart.
 
On December 31st the price broke downwards through the "Lead 2" cloud (senkou span B). The Lead 2 indicator is 50% of the range for the past 52 periods. This is a signal for me to trade SHORT , provided that the Lagging Line is in what I call free space, which in this case it eventually did.
 
The trade reached its profit point on January 3rd.
 
The Lead 2 indicator is a "strong" one for me as it shows a level of support/resistance for the past 52 periods. It is therefore the "strongest level of support/resistance when compared to the other indicators.
 
I am happy to clarify - darryl@methodandmadness.org

An example of how I would go SHORT on USD/JPY using Ichimoku Cloud Indicator - 4 hour chart

I suggested using a trailing STOP using the Parabolic SAR. It was hit on January 3rd.

Exit long trade on breaking of Parabolic SAR on January 3rd

The Ichimoku Cloud is telling me that the market is still consolidating. I await a breakout either way.

Still consolidating

The price of AUS200 is above the Ichimoku cloud signifying that it is still BULLISH. However, it is also clear that the price is still consolidating. As a trader, I will be patient and await a signal when the market shows that it is trending.
 
As an investor, I can use the AUS200 as a hedge against a fall in the price of my investment portfolio.
 
The AUS200 is a valuable instrument for both traders and investors.
 
Always be aware of RISK.
 
My wish for you is to trade and invest with complete confidence!

Still Consolidating

Daily LONG trade. NOTE: It is against the WEEKLY trend which is SHORT.
 
Use a ParabolicSAR as a trailing STOP.

Darryl Nagel

Darryl Nagel

Dec 01 2020

Short AUDUSD

3

Darryl Nagel

Dec 01 2020

Trend Line tool can measure periods - I use it to measure 26 periods from last price action = Lagging Span

Darryl Nagel

Dec 01 2020

An example of how I would go SHORT on USD/JPY using Ichimoku Cloud Indicator - 4 hour chart

2

Darryl Nagel

Dec 01 2020

Exit long trade on breaking of Parabolic SAR on January 3rd

Darryl Nagel

Dec 01 2020

Still consolidating

1

Darryl Nagel

Dec 01 2020

Still Consolidating

3

Darryl Nagel

Dec 01 2020

AUDUSD daily LONG

1