The royal strategy on the Ishimoku

The useful use of the Ishimoku indicator has been known to many people for quite a long time. There are many variations of strategies with this indicator. ForTrader magazine offers you to get acquainted with another one, which the author (ichimokuking) called royal, obviously in honor of himself.

Для работы нам не понадобится никаких дополнительных индикаторов, кроме традиционного ichimoku, имеющегося в вашем терминале. В этом и есть простота и приятное удобство для трейдера: нет необходимости анализировать множество фильтров, главное — терпение и прибыль не заставит себя долго ждать. По словам автора, система выигрышная на 80-85%, что, конечно, довольно много, и при хорошей системе управления капиталом, даст прекрасный результат. Дополнительным очень важным преимуществом является наличие четких критериев для уровней StopLoss and TakeProfit.

So, for the work we will need:

• Currency pair: EURUSD, GBPUSD, AUDUSD, USDJPY
• Timeframe: H1
• Type of graph: candles
• Indicator: Ichimoku Indicator (9,26,52) with default settings

Similar strategies to Ishimoku

• Trading strategy based on the Ishimoku indicator
• Strategy based on the Ishimoku indicator and Heiken Ashi

Put the indicator on the chart and look at the picture that appears. We are looking at the 6 parts of the Ishimoku indicator:

• Chinkou Span — A
• Tenkan Sen — B
• Kijun Sen — C
• Senkou Span A — D
• Senkou Span B — E
• Kumo облако — F

The presence of each of them economically justified and there is a lot of information about these indicators, so we will not dwell on that and go straight to the rules of the strategy.

Rules of trading strategy on the Ishimoku

To open sales transactions several conditions must be met:

1. Chinkou Span is below the price chart and all other Ishimoku indicator lines.

2. If condition 1 is met, wait for the following signal: Tenkan Sen (red line) must cross Kijun Sen (blue line) from top to bottom.

If condition 2 is fulfilled, we expect the price chart to cross lines D, E and F and close the bar below them.

4. If condition 3 is met, we open three sell trades (or one in triple volume) with TakeProfit levels of 30, 50 and 100 pips respectively.

5. Set StopLoss at 50 pips for all trades. When TP1 triggers (30 pips), move SL to Breakeven for the remaining transactions.

6. All trades are also closed when a reverse signal appears.

To open purchase transactions we use the inverse conditions:

1. Chinkou Span is above the price chart and all other Ishimoku indicator lines.

2. If condition 1 is met, wait for the following signal: Tenkan Sen (red line) must cross Kijun Sen (blue line) from bottom to top.

If condition 2 is fulfilled, we expect the price chart to cross lines D, E and F and close the bar below them.

4. If condition 3 is met, we open three sell trades (or one in triple volume) with TakeProfit levels of 30, 50 and 100 pips respectively.

For each currency pair 6-8 transactions are formed per month, about 25 transactions for all pairs.