This strategy is based on the Ichimoku Kinko Hyo system.
- A bullish signal is detected the Tenkan crosses the Kijun upward and if the Chikou is above the stock price
- A bearish signal is detected if the Kijun crossed the Tenkan upward and is the Chikou is below the stock price
The signal strength depends on the position of the the Tenkan crossing the Kijun relative to the cloud.
The bullish signal is
- Weak if the crossover occurs below the cloud
- Medium if the crossover occurs below inside the cloud
- String if the crossover occurs above the cloud
The bearish signal is
- weak if the crossover occurs above the cloud
- Medium if the crossover occurs inside the cloud
- Strong if the crossover occurs below the cloud