You want a nice green candle closing high
Thank you very much
I myself are a avid Ichimoku trader, I'm very confused as to how would one trade a continuous trend, so far I am only trading Ichimoku breakouts (where the price breaks to above or below a cloud) and have limited success, but after I exit I see the price move back to the equilibrium, I just get lost as to how to continue trading a trend after it breaks from the equilibrium.
Traditionally, a kumo breakout is a kumo breakout and that is the problem that causes ichi traders to lose a lot of money. Even if you filter the breakouts with CS (which is really important) still you will face problems, although less problems than not using it
So, what is the solution?
To trade kumo breakouts successfully, you have to know what the breakout actually is. In my book, there are 3 types of kumo breakouts:
1. Reversal breakout (they happen very rarely)
2. ranging breakouts (they happen more frequently than reversal breakouts)
3. continuation breakouts (These constitute more than 60% of all breakouts - this is a rough estimate on my part)
So, from the information I just gave you, you should know why you have a large number of false kumo breakouts. You should also know that your best bet would be to treat the breakout as a false breakout and a possible continuation in the original direction or at least to treat it as a range.
I hope my answer will solve many problems for you
Thank you very much for the prompt reply, so far I've been lucky enough to be able to trade mostly on range and resist/support line breaks on the cloud. I did do a false breakout today, came out with a little loss. Thanks again for your information. I shall do my best to utilize.