Ichimoku day trading made easy

An Ichimoku trading strategy

This Ichimoku trading strategy attempts to break through the complexity of interpreting the Ichimoku system. Trader Guillaume Lidy developed his SSB strategy around one of the most powerful elements from the Ichimoku system, the Senkou Span B line (SSB). Lidy uses the Senkou Span B line to identify support and resistance levels.

The Ichimoku SSB strategy is an easy entry point into Ichimoku day trading.

The Senkou Span B line is important

The Ichimoku cloud (Kumo) is drawn by he Senkou Span A and the Senkou Span B line. The cloud often shows flat, horizontal segments. The SSB line is either the top or the bottom of the cloud depending on the market sentiment. The top in a bearish market, and the bottom in a bullish market. The SSB line is considered flat if it remains at the same level for at least 10 consecutive periods.

Trader Guillaume Lidy holds that flat Senkou Span B lines act as support and resistance levels for trading strategies.

This example shows the SBB line (1), and the trading zone around the flat SBB line (2). The SBB line is above or below the cloud depending on the market sentiment. When the SBB line is flat, the grey trading zone is drawn. Around this zone trading signals occur.

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Ichimoku-based trading signals

These Ichimoku trading signals are clear and unambiguous.

A buy signal

A buy signal appears when the price drops into the zone, forms a low within the zone, and closes above the zone in the next candle. The green background and triangle indicate a buy signal

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A short sell signal

A short sell signal appears when the price rises into the zone, forms a high within the zone, and closes below the zone in the next candle. The red background and triangle indicate a short sell signal.

Protect your positions

The NanoTrader platform is exceptional in allowing traders to protect their open positions with creative, lucrative methods. Trader Guillaume Lidy uses the following profit target and stop loss for his Ichimoku SSB stragegy:

• Profit target  =  5x the 20-period ATR
• Stop loss  =  the 25-period PeriodsHighLow stop

NanoTrader can automatically place your profit target and stop loss orders.

The strategy includes an optional flat filter, which can be activated as usual in the Designer Dialog. The flat filter automatically closes the position at a specified time. The default time is 21h45. The time filter ensures no position is kept overnight, thus avoiding the risk of a gap opening.

Ichimoku trade examples

This example shows a buy signal on a 15-minute chart. The red line is the stop loss order. The green line is the profit target order. The market price reaches the profit target. The position is closed with a profit.

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This example shows a short sell signal on a 15-minute chart. The red line is the stop loss order. The green line is the profit target order. The market price reaches the profit target. The position is closed with a profit.

A profitable Ichimoku strategy?

Back-tests seem to give positive results. This example shows the profit on the gold price since early 2016.

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This example shows the Ichimoku SSB strategy applied to a popular forex pair GBP-USD. The back-test shows a nice overall profit since 2016.

How to implement this free strategy

Follow these steps in the NanoTrader Full platform:

1. Open the chart of the instrument you want to trade.

2. Select the strategy in the "WHS Strategies" folder.

3. Activate "TradeGuard+AutoOrder" in the chart to trade semi-automatically or "AutoOrder" to trade automatically.

If desired, change the time unit (15 minutes), the trading zone (0.04% around the SBB line), the flat filter (21:45), and other parameters.

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