Ichimoku indicators provide a full trend-following system. This approach focuses on the Tenkan-sen crossing the Kijun-sen while price trades relative to the Kumo cloud. A bullish cross above the cloud signals trend continuation higher, whereas a bearish cross below the cloud suggests weakness.
During operation the strategy calculates the Ichimoku components on each bar. When Tenkan rises above Kijun and price sits above the cloud, a long trade is initiated with a stop near Kijun. A cross in the opposite direction below the cloud triggers a short with a similar stop placement.
The system stays in the trade until the stop is hit or the cross reverses, aiming to catch sustained moves that follow the direction of the cloud.
- Entry Criteria: Tenkan/Kijun cross with price relative to the Kumo cloud.
- Long/Short: Both.
- Exit Criteria: Stop-loss or opposite cross.
- Stops: Yes, at Kijun level.
- Default Values:
- TenkanPeriod = 9
- KijunPeriod = 26
- SenkouSpanBPeriod = 52
- CandleType = 30 minute
- Filters:
- Category: Trend following
- Direction: Both
- Indicators: Ichimoku
- Stops: Yes
- Complexity: Intermediate
- Timeframe: Swing
- Seasonality: No
- Neural networks: No
- Divergence: No
- Risk level: Medium