Video Manual and Free to Download: Ichimoku - Invalid Kumo Breakouts

Here's a look at a few Kumo Breakouts and why they are not valid breakouts.

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Ichimoku threads/posts on mql5.com forum

• The theory of the signals
• Ichimoku alert indicator with arrows
• Ichimoku alert indicator improved : warning alert mode was fixed and autosettings feature was added

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Ichimoku indicator description

1. Tenkan Sen - moving average of the highest high and lowest low over the last 9 trading days. (Highest high + Lowest low) / 2 over the last 9 trading days
2. Kijun Sen - moving average of the highest high and lowest low over the last 26 trading days. (Highest high + Lowest low) / 2 over the last 26 trading days.
3. Senkou Span A - the average of the Tenkan Sen and Kijun Sen, plotted 26 days ahead. (Tenkan Sen + Kijun Sen) / 2 plotted 26 days ahead
4. Senkou Span B - the average of the highest high and lowest low over the last 52 days, plotted 26 days ahead. (Highest high + Lowest low) / 2 over the last 52 trading days plotted 26 days ahead.
   
5. Chikou Span - the closing price plotted 26 days behind.

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Tenkan Sen / Kijun Sen Cross
The Tenkan Sen / Kijun Sen Cross signal occurs when the Tenkan Sen (Turning line) crosses the Kijun Sen (Standard line).

A bullish signal occurs when the Tenkan Sen crosses from below to above the Kijun Sen

• A weak bullish signal occurs when the cross is below the Kumo.
• A neutral bullish signal occurs when the cross is inside the Kumo.
• A strong bullish signal occurs when the cross is above the Kumo.

A bearish signal occurs when the Tenkan Sen crosses from above to below the Kijun Sen

• A weak bearish signal occurs when the cross is above the Kumo.
• A neutral bearish signal occurs when the cross is inside the Kumo.
• A strong bearish signal occurs when the cross is below the Kumo.

Kijun Sen Cross
The Kijun Sen Cross signal occurs when the price crosses the Kijun Sen (Standard line).

A bullish signal occurs when the price crosses from below to above the Kijun Sen

• A weak bullish signal occurs when the cross is below the Kumo.
• A neutral bullish signal occurs when the cross is inside the Kumo.
• A strong bullish signal occurs when the cross is above the Kumo.

A bearish signal occurs when the price crosses from above to below the Kijun Sen

• A weak bearish signal occurs when the cross is above the Kumo.
• A neutral bearish signal occurs when the cross is inside the Kumo.
• A strong bearish signal occurs when the cross is below the Kumo.