I am getting into the Ichimoku system. It was working well for a few weeks and stopped. The Cumo break system was what I was using. The indicator is working well again. You know, where the price is sandwiched between lagging span and cumo a/b. I liked using this for my entries as they always seemed to trend up very well. Lately I have been seeing these setups only for them to fall back into the cloud after a few candles. This week however they starting to work well again. How do I avoid the false break outs?
Understand that it is order flow that moves price action. Your aim should be to determine where losing traders would close their trades or get stopped out. On a bullish trend, that will move the price action downwards where winning traders could add to their positions and also attract new buyers.
Even then, there is never any guarantee what would happen. I use Ichimoku set up on three TF’s which must all be in accord like three ducks in a row. Daily trend, 4hr entry and 15m charts for being in synch with the higher TF’s.
Hope that helps a little.
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you can use a filter like adx but, remember that many filters can overfit you strategy.
You need to have an actual systematic approach. A ‘few weeks’ is no where near long enough to analyse any part of a system. Have you backtested the cloud to see how often it drops back in and if there are certain conditions or time of day that it occurs?
Thanks for all who have replied. I am looking for some kind of signal from the 5 basic Ichimoku systems. Any one?