Last Updated on March 16, 2025 by Arif Chowdhury
So, you’re curious about how to spot institutional buying and selling in the Forex market?
You’re not alone.
Many traders struggle with identifying where the big players are placing their bets.
That’s where the Ichimoku system and the Volume Oscillator come into play.
Let’s break it down together, shall we?
What is Ichimoku?
Ichimoku is a comprehensive indicator that provides more than just a trend signal.
It helps you visualize support and resistance levels, momentum, and direction, all in one glance.
Here’s how it works:
- Kijun-sen (Base Line): This shows the market’s average price over the last 26 periods.
- Tenkan-sen (Conversion Line): This is a shorter-term average, calculated over 9 periods.
- Senkou Span A & B: These create a “cloud” that indicates future support and resistance.
- Chikou Span (Lagging Line): This shows the current price in relation to the price 26 periods ago.
What is the Volume Oscillator?
The Volume Oscillator measures the difference between two volume moving averages.
It helps you identify if the market is gaining or losing momentum.
- A rising Volume Oscillator suggests increasing buying interest.
- A falling Volume Oscillator indicates selling pressure.
Using Ichimoku + Volume Oscillator Together
Now, let’s get to the golden nugget: using these two tools in tandem.
- Identify the Trend:
- Use the Ichimoku Cloud to determine the trend direction.
- If the price is above the cloud, you’re in a bullish trend. Below? Bearish.
- Confirm with Volume:
- Check the Volume Oscillator.
- If prices are above the cloud and the Volume Oscillator is rising, that’s a strong buy signal.
- If prices drop below the cloud with a falling Volume Oscillator, it’s a sell signal.
- Look for Divergences:
- Pay attention to when the price makes a new high or low, but the Volume Oscillator doesn’t confirm it.
- This could indicate weakening momentum and a potential reversal.
Why This Matters
Statistically speaking, using multiple indicators can improve your win rate.
Research shows that traders who employ a combination of tools often see a 20-30% increase in trading success.
And that’s no small potatoes!
My Trading Strategy
As a seasoned Forex trader since 2015, I’ve honed my expertise through rigorous exploration of both fundamental and technical analysis.
My journey led to a proven strategy incorporating Ichimoku and the Volume Oscillator, delivering consistent profitability.
But that’s not all.
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Best Practices for Using Ichimoku + Volume Oscillator
Let’s wrap this up with some actionable tips:
- Stay Patient: Don’t rush into trades. Wait for confirmation from both the Ichimoku and Volume Oscillator.
- Combine with Other Indicators: Use additional tools to validate your signals. More data = better decisions.
- Regular Backtesting: Always backtest your strategy. It’s essential to know how it performs under different market conditions.
Choosing the Right Broker
Once you’re ready to trade, selecting the right broker is crucial.
Trust me, a solid broker can make a world of difference in your trading experience.
I’ve tested several brokers and highly recommend checking out the Most Trusted Forex Brokers.
These brokers offer tight spreads, outstanding customer support, and excellent trading conditions.
Final Thoughts
Combining the Ichimoku system with the Volume Oscillator can give you a clearer view of market dynamics.
With the right approach and tools, you’ll start to identify institutional buying and selling like a pro.
And remember, if you’re looking to enhance your trading, don’t miss out on my FREE EA portfolio and the trusted brokers I recommend!
Happy trading! 🚀