Combining Ehlers Indicators and Ichimoku for Trend Trading
Summary
The document describes an automated trend strategy that combines an Elder trend ribbon, Ehlers indicators, Ichimoku levels, and a 200-period moving average. It uses indicator direction and momentum to filter trades, with fractal dimension as an additional guide in uncertain situations. Entries vary with price’s position relative to the Ichimoku cloud and moving average; some setups require a Tenkan-Sen pullback or a rejection near the ribbon or Kijun-Sen. Exit rules use those levels alongside changes in indicator readings, and the strategy limits entries to one per ribbon-color trend.
The author says the approach was adapted for USDJPY on a four-hour chart and reports trying it on crude oil and EURUSD at other timeframes. These are anecdotal examples, not controlled performance evidence: the document gives no backtest statistics or comparison with alternatives. It also notes that settings such as the digit factor need adjustment for different markets, and warns that trading carries risk and results are not guaranteed. The detailed code is lengthy, platform-specific, and includes implementation conditions that may not map cleanly to the prose rules.
Key ideas
- The strategy combines Elder ribbon direction with Ehlers momentum measures to filter trend entries.
- Ichimoku cloud position, Tenkan-Sen, Kijun-Sen, and a 200-period moving average shape entry and exit decisions.
- Fractal dimension is used as a supplementary signal when trend conditions are unclear.
- A Tenkan-Sen pullback or rejection can provide an entry in selected setups.
- The approach aims to hold major trends while limiting entries to one trade per ribbon-color trend.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.