Hourly Ichimoku Signals with Cloud-Thickness Rules

Summary

This hourly system combines Ichimoku components with a weighted moving average calculation. It derives the conversion line and base line from the midpoint of recent highs and lows, then calculates the two cloud spans and their absolute separation. The listed defaults include 9 periods for the conversion line, 24 for the base line and displacement, and 51 for Span B. The strategy checks for crossovers between price and both the conversion and base lines; when both crossover checks are satisfied, cloud thickness selects which side of the conversion line determines whether to buy or sell.

The document says the method is intended for a one-to-two-month measurement horizon, but supplies no test results or rationale for the thresholds. Although a cloud-thickness threshold is configurable, the source does not implement a stop-loss or clearly define position sizing, exit conditions, or safeguards against repeated orders. Several calculated values are plotted or retained without affecting the entry decision. The description therefore offers an indicator-based rule sketch rather than evidence that the system is profitable or robust.

Key ideas

• The conversion and base lines are calculated as midpoints of recent high-low ranges.
• The strategy checks price crossovers against both lines before considering an order.
• Cloud thickness changes which side of the conversion line selects a long or short entry.
• The document describes hourly use but provides no performance evidence.
• The source lacks an explicit stop-loss and clear position exit rules.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.