🌊 Swing · Full system
Ichimoku Cloud
A complete system in one indicator: cloud (Kumo) for trend, Tenkan/Kijun crosses for signals, Chikou for confirmation. Long above the green cloud with Tenkan > Kijun; opposite for shorts.
Setup
- Chart: daily candles with Ichimoku default settings (9, 26, 52, 26)
- Five components: Tenkan-sen (fast), Kijun-sen (slow), Senkou Span A/B (form the cloud/Kumo), Chikou Span (lagging price)
- Bullish regime: price above the cloud, cloud is green (Span A > Span B), Chikou above price 26 bars back
Entry
Long: Tenkan crosses above Kijun (TK cross) while price is above a green cloud AND Chikou is above the price line from 26 bars ago. Short: mirror — TK cross down, price below red cloud, Chikou below.
Exit
Exit longs on a TK cross down or when price closes back inside the cloud. Symmetric for shorts.
Stop-loss
Below the Kijun-sen (long) or above it (short). Kijun is the natural trailing stop within Ichimoku.
When it works
- Persistent trend with widening cloud — the cloud thickness signals conviction
- All five components align — the fewer confirmations, the weaker the signal
- Weekly timeframe on indices for long positional swings
When it fails
- Price inside the cloud (chop zone) — no directional edge
- Thin, twisting cloud — signals sideways market
- TK cross alone without cloud/Chikou confirmation — high failure rate
General trading rules that apply
Regardless of the specific setup, these apply to every strategy on this site:
- Never risk more than 2% of your account on a single trade
- Place a hard stop-loss before entering — no exceptions
- Journal every trade: setup, reason, outcome, one lesson
- After two consecutive losses, stop for the session
- Backtest and paper-trade for a month before deploying real capital
Every strategy here is part of our in-house catalogue, written and calibrated for Indian markets. Past behavior does not guarantee future results. Charts run against 2-year Nifty data — actual results in your account will vary. Backtest, paper-trade, and size responsibly before risking real capital.