Ichimoku trend check
Trend following · Difficulty: Advanced
The idea
Ichimoku draws several lines at once to show trend, momentum and support or resistance. Price above the cloud (the area between Span A and Span B) suggests an uptrend.
Indicators and settings
Ichimoku 9, 26, 52 (Tenkan, Kijun, Span A and B, Chikou) and ADX 14.
Entry rule
Consider a long when price is above both Span lines and Tenkan crosses above Kijun. A rising ADX adds confidence.
Exit rule
Exit when price closes below Kijun, or into the cloud.
Stop-loss and risk rule
Stop under Kijun or the cloud edge. Risk 1% or less.
Best conditions
Clean trends on daily and weekly charts.
Pitfalls
- Complex: it takes practice to read.
- Our version draws the lines but does not shade the cloud.
- Cloud future times are approximate across market closes.
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Illustration only; ignores slippage, tax and most costs. Not financial advice.