BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
Step #1 Wait for the Price to Break and close above the Ichimoku Cloud
Ichimoku cloud trading requires for the price to trade above the Cloud because that’s a bullish signal and potentially the beginning of a new up-trend.
The cloud is built to highlight support and resistance levels and it’s supposed to highlight several layers deep because support and resistance are not a single line drawn in the sand, but several layers deep.
So, when we break above or below the Ichimoku Cloud that signals a deep shift in the market sentiment.
Step #2 Wait for the Crossover: The Conversion Line needs to break above the Base Line.
The price breakout above the Cloud needs to be followed by the crossover of the Conversion Line above the Base Line. Once these two conditions are fulfilled only then we can look to enter a trade.
As you can notice the Ichimoku Cloud indicator is a very complex technical indicator that can be used even as a moving average crossover strategy.
Now, we’re going to lay down a very simple entry technique for the Ichimoku Kinko Hyo trading system.
Step #3 Buy after the crossover at the opening of the next candle
Ideally, any long trades taken using the Ichimoku strategy are taken when the price is trading above the Cloud. Our team at TGS website has adopted a more conservative approach and added an extra factor of confluence before pulling the trigger on a trade.
So, after the crossover we buy at the opening of the next candle.
Step #4 Place protective stop loss below the breakout candle
The ideal location to hide our protective stop loss is below the low of the breakout candle. This trading technique accomplishes two major things.
Firstly, it’s minimizing significantly the risk of losing big money and secondly, it helps us trade with the market order flow.
Since this is a swing trading strategy we’re looking to capture as much as possible from this presumably new trend and we’ll be looking to trail our stop loss level below the Cloud or exit the position once a new crossover happens in the opposite direction.
Step #5 Take Profit when the Conversion Line crosses below the Base Line
We only need one simple condition to be satisfied for our take profit strategy.
When the conversion line crosses below the base line we want to take profits and exit our trade.
Alternatively, you can wait until the price breaks below the Cloud but this means risking to lose some parts of your profits. In order to gain more sometimes you have to be willing to lose some.
Note** the above was an example of a BUY trade using the advanced Ichimoku trading strategies. Use the same rules for a SELL trade – but in reverse. In the figure below, you can see an actual SELL trade example.
Comment: 1st take profit hit
Stop Loss adjusted
Comment: 2nd Take Profit hit
Waiting for Step 5 to exit trade
Comment: 3 EXIT PLANS


Hello, I am using Ichimoku with good results, and I find the 4H chart to work best for me. Do you check your charts every 4 hours, or do you have any special time of the day to look for good signals_ Thank you for your post!!!
+5 Reply
@carlosbanega, I like checking my chart every 4H. When price is beginning to setup like now on this pair I will try to check them each hour. The beginning of the London and US sessions move the price the most. The 4H time period between London open and US open I always try to be attentive.
I see you were taking profit at different highs, love the idea of taking profits in diff high/lows till the crossover occurs to close final profit. Keep up the good work!
+2 Reply
this is a great system i recommend to anyone looking to make good returns... its a shame so few know or even use it Ps: it just looks complicated its really easy :)
@mikewill505, Yes it is. Here is the complete strategy -
hi, have you tested it on a trade?
tradermikey MovingWater
@MovingWater, this system exists since WW II, enough tested ;)
xaurr tradermikey