ichimoku Cloud Trading Strategy

Components

#1

Conversion Line

Line Showing Short Term Trend

#2

Base Line

Line Showing Medium Trend

#3

Lagging Span

Line showing long term trend

#4

Lead 1

If this line is on upper side than green cloud formation

#5

Lead 2

If this line is on upper side then red cloud is formed

Trading Rules

#1

Trend Indification

If price is in between the cloud, then no trading zone

If green color cloud is spotted and price is outside the cloud then trend is bullish (upward trend)

If red color cloud is spotted and price outside the cloud then trend is bearish (downward trend)

#2

Buy Position (positional or intraday)

Conversion line should be above the base line

Lagging Span should be above the price

Cloud color should be green

Sell Position (only in intraday)

Conversion line should be below the base line

Lagging Span should be below the price

Cloud Color should be Red

#3 (Very Imp)

Target

Average True Range
(ATR) * (x)
(where x stands for no of days the position is to be hold)

Stop loss
(Very very imp)

ATR *(x/2)