Ichimoku Cloud Overview

Ichimoku Kinko Hyo is a full trend‑following system. Components: Tenkan (conversion), Kijun (base), Senkou A/B (cloud) and Chikou (lagging).

Signals

• TK cross with price above the cloud (bullish) or below (bearish).
• Kumo breakouts with HTF cloud alignment.
• Pullbacks to Kijun within trend for continuation entries.

Plan

1. Read HTF cloud bias and only trade in its direction.
2. Enter on TK cross + Kumo support/resistance or Kijun pullback.
3. Stop beyond Kijun/cloud; scale out at prior swing and trail with Kijun.

Detailed Case Study: EURUSD H4 Ichimoku Trade

Context: H4 chart shows uptrend with price above cloud (green). D1 also bullish cloud.

• Entry: Price pulls to Kijun (1.0850) while Tenkan/Kijun cross bullish; entry at 1.0852 on break of prior candle high.
• Stop: Below cloud support at 1.0820 (32 pips risk).
• Target 1: Prior swing high 1.0900 (48 pips = 1.5R).
• Target 2: Extension to 1.0950 (98 pips = 3R).
• Size: Account $10,000, risk 1% = $100. Pip value $10/lot. Size = 100 ÷ (32 × 10) = 0.31 lots (round to 0.3).
• Management: Close 50% at 1.0900 (+$144), move stop to break‑even, trail remainder with Kijun. Final exit at 1.0940 (+$264 on remainder). Total: +$408 (4.08R).

Example 2: Gold D1 Kumo Breakout

Setup: Gold consolidates below cloud for weeks, then breaks above with Tenkan crossing Kijun.

• Entry: $2,040 on close above cloud top.
• Stop: $2,020 (below cloud bottom, 20 points).
• Target: $2,100 (previous resistance, 60 points = 3R).
• Size: Account $50,000, risk 1.5% = $750. Point value $100/oz. Size = 750 ÷ (20 × 100) = 0.375 oz (round to 0.4).
• Result: Hit target; +$2,400 (3.2R).