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.
To work we do not need any additional indicators, except the traditional ichimoku, which is available in your terminal. This is the simplicity and pleasant convenience for the trader: there is no need to analyze many filters, the main thing is patience and the profit will not make you wait long. According to the author, the system is winning at 80-85%, which is certainly quite a lot, and with a good money management system, will give excellent results. An additional very important advantage is the presence of clear criteria for levels 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 cloud - 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.
Erroneous description: In a buy trade, we open buy orders.
By the way, perhaps it works well on H4, not H1, because the indicator is designed for days, or rather even for weekly charts.
on crypto pair BTC/USDT H1 and on BTC/LTC 45min. as tests have shown this time interval gives the maximum profit
I can not find the file to download, can someone help me?
Thanks for your help, I learned a lot by following you.
Luca.
the author writes bullshit.
First of all, where are the parameters for the turkey,
And secondly - try to show two screenshots - when the decision to enter and already the result.
Ishumoku is a lagging and biased indicator - and the proposed strategy is, to put it mildly, incorrect.