Its no more a Secret that how much I love Kumo-Breakouts, I’m sure you’ve noticed already that most of my Ichimoku Trades and Entries are actually based on Kumo-Breakouts and the reason is that I’ve found it to be the most reliable Entry Setup …
Also, I’ve been looking at this wonderful Indicator called Alternative Ichimoku, its actually a modified version of Standard Ichimoku System and is freely available at http://codebase.mql4.com/en/1467
Although its not the way Victor Lukashuck (original author of Alternative Ichimoku) uses this system, I’ve been researching on the following setup and it seems to be working quite well, here are the rules:
- Look for Kumo Breakout, rule is that the Candle Opens Below the Kumo Cloud and Closes above the Kumo Cloud (in case of a Bullish Entry, rules will reverse for a Bearish Entry)
- However, its not that simple to just look for Kumo-Breakout. The condition is that the Chikou-Span must confirm the Sentiment (Bullish or Bearish)
- Exit depends on your Trading Personality. Feel free to use anything you like, RSI (over-bought / over-sold), Pivot Points and etc. I, however prefer to use Chikou-Span’s Cross in reverse direction
There is still so much room for improvement and I’m currently working / thinking on making it even better … feedback / ideas will be highly appreciated.
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Asher,
Is that the black line we are talking about in breakout? That the candle opens below it and closes above it? because the Kumo cloud seem to have broken by multiple candles in above examples, and after the breakout it returns sharply. Or could you pin point the location where its breaking?
Regards,
Omar
Asher –
Do you change the Span A and B periods as Victor does (seems to?) for each pair or are you using the 52, 26, 9?
His stop line inside the kumo is interesting.
Best to you, Forest
Omar: However, its not that simple to just look for Kumo-Breakout. The condition is that the Chikou-Span must confirm the Sentiment (Bullish or Bearish)
Omar: if you notice on my charts, I’ve placed Price Tags, those are Entry and Exit signals.
Hey Asher
Fantastic blog
I am however getting a little confused.
Here, using the alteranative ichi indicator you are looking to enter usually on a break of the kumo, however your ichi360 indicator shows the entry for trades based on a cross of the KS.
When do you use which?
I have been trading ichi using kumo breakouts and wondered whether there was anyway to make the kumo breakouts show as the entry on ichi360v6?
[...] Here is the link to the post which explains how to use Alternative Ichimoku and its Kumo Breakouts &… [...]
Hi asher,
Do you have Expert advisor for ichi30 v6 or alternate ichi? Some times the signal comes during my sleep lol.
Thanks
Hi NMV,
Unfortunately, I do not have any EA at this stage … I like doing analysis and following it …
Hi Carsomyr,
Thanks for the kind words. Well, these two are different systems and have nothing to do with each other. Also, in Alternative Ichimoku I do not trade on KS Breakout but on Kumo Breakouts only.
hi
I’m using Ichimoku for some time just as a reference, right now I’m developing a model to invest in stocks and would like your opinion.
1 The base is just trade Long if the price is above Moving Average 20 Periods or just Short if the price is Below the MA20. This on weekly chart.
2 Then trade the kumo breakout (daily chart) only on the position according to the point1. My StopLoss is between 1% and 1.2% (what do you suggest when the other side of the kumo is too far from my money management?)
3 My Exit Point can be 1 of 3:
a) using the Pivot based on day before and get out if it breaks below the second Support or Resistance (depending if the position is Long or Short)
b) draw a trend line and when the price cross it just get out -> this use to last 20 days and with gains of 20% to 25%
c) Price cross the Kinjun -> this use to last from 40 to 60 days with gains that go between 25% to 40%
Problems:
Entry point – most of the times there are false breakouts that I would like to avoid but I’m still thinking how to do it.
Exit point -
a) it can close the position to soon and don’t comeback to the kumo, so my question is “should I comeback to my original position when the price cross the 1st resistance (if long – 1st support if short)?”
I’m still thinking about that but can be a option
b) drawing a trend line can be very subjective, but it works fine when the stock is in a clear trend and start to slowdown to consolidation.
c) it takes too many time, the rate of return per day is half of what you can get if your exit is on b). But if you have patience is a good return for 60 days (from 25% to 40%). This exit point I just recommend to thous who have time and money and most of all like to complement with fundamental analysis.
So my friends, this is my model still in development but with a need for some adjustments, if you could help me I appreciated.
Is there an ALERT for Kumo Breakouts??
Hi Steve you may want to have a look at http://www.ichi360.com/?p=2353
Hello,
We also work with the Belkhayate system and we can tell you that it is 95% profitable to us.
The main thing is to have patience. That is key number 1.
We use it a bit diferently than ichi30 but no matter, we still consider the rules.
ICHI30 can you tell me when you are thinking to EA to be ready?
Till then don’t you think making an indicator where the support en resistance bars could give alarm signals?
Regards from The Netherlands.
Hi Ottmar,
Do you mind to please explain your question once again, I’m not sure if I understood you very well.
Thanks