The system for trading on the Forex market “Kumo Breakout”
The system “Kumo Breakout” is based on the well-known indicator “Ichimoku” and is designed for trading on the Forex market. The methods of working with the indicator “Ichimoku Kinko Hyo” give the opportunity to get many different types of signals using a single chart.
As for all trading methods, when we use “Ichimoku Kinko Hyo” for our operations, it is always desirable to take into account other elements (volumes, market sentiment, seasonality, oscillators, etc.), but of course, a direct graphical understanding of the trend and its evolution represents the strongest strength of the “Ichimoku” method.
The “Kumo Breakout” system can be used for different trading styles on charts from fifteen minutes onwards. It is possible to trade any currency pairs, indices, metals and commodities. It is also important to choose a broker for safe trading on the Forex market.
This system uses only “Kumo”, or “cloud”, which is the basis of the indicator “Ichimoku Kinko Hyo” and is displayed between the lines “Senkou span A (SSA)” and “Senkou span B (SSB)”. “Kumo” can be used as a support and resistance, as well as to determine the direction of movement.
The Kumo Breakout system consists of only four technical indicators. The system looks very clean and pleasant to the eye on the graph. The idea of the system is in the cloud breakthrough (“Kumo Breakout”), but there is no need to look for breakthrough points, because additional indicators give buy or sell signals.
The first lower window has the “Kumo Breakout Histo” indicator installed. When the price is inside the cloud, the bars of the indicator are colored yellow. If the price is higher than the cloud, bars are green, if lower, bars are red. The “Megatrend” indicator is located in the lowest window of the terminal and confirms the signal with green or red dots
This screenshot shows an example of trading in a growing market. A buy position opens when the price broke through the cloud, and the indicators “Kumo Breakout Histo” and “Megatrend” confirm the signal with green bars and dots. Stop-loss is set on the line Kijun-sen. The position is closed when the red bar of the “Kumo Breakout Histo” indicator appears.
The hourly chart here shows an example of a sale. A sell position opens when the price broke through the cloud, and the indicators “Kumo Breakout Histo” and “Megatrend” with red bars and dots confirm the signal. Stop-loss is set on the line Tenkan-sen. The position is closed when the green bar of the “Kumo Breakout Histo” indicator appears.
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