Éducation

How to use the Ichimoku baseline and SMA7 crossover as an entry?

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The reason for combining the baseline with SMA is that the baseline provides a good signal for price continuation, while the crossover gives a solid and reliable signal for entering a trade. This signal also helps to identify a suitable point for placing your stop loss. To use this signal, you must wait for the crossover and then enter the trade after the first candle closes below or above the crossover. Your stop loss should be placed behind the signal candle:

snapshot

if your entry point is too far from cross over point, you can just ignore the signal and avoid the trade cause the risk and reward ratio it this situation is not suitable:

snapshot



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