Trend following
Ichimoku Cloud Trend
Trade with the cloud, direction, momentum and support in one system.
Ichimoku encodes trend, momentum and support/resistance in one view. A robust trend approach trades in the direction the cloud defines, timing entries with the Tenkan/Kijun crossover and using the cloud as dynamic support and resistance.
How it works
Price above the Kumo (cloud) sets a bullish bias, below it bearish. A Tenkan-sen cross above the Kijun-sen times bullish entries, especially when price holds above the cloud. The cloud's far edge offers a logical invalidation and trailing reference.
Entry rules
- ▸Require price above the cloud for longs (below for shorts).
- ▸Enter on a Tenkan/Kijun crossover in the trend direction.
- ▸Optionally require the Chikou span to be clear of price.
Exit & risk
- ▸Exit on a close back into or through the cloud.
- ▸Trail with the Kijun-sen or cloud edge.
- ▸Stop below the cloud for longs.
Best for
Trending markets and higher timeframes. Inside the cloud (neutral) the system gives few clean signals, by design.
Build this strategy in Algovex
Every component of this strategy is a node in Algovex — drop them on the canvas, connect the logic, backtest on a real engine, and export to code. No programming required.
Key terms
Frequently asked questions
How do you trade with the Ichimoku Cloud?
Use the cloud for bias (above = bullish, below = bearish), time entries with Tenkan/Kijun crossovers, and use the cloud as dynamic support/resistance and a trailing reference. Algovex exposes all Ichimoku components to backtest this.