Ichimoku Conversion and Base Line Crossovers with a 200-Day EMA Filter

Summary

This trend-following approach uses Ichimoku Conversion and Base Lines, which are Donchian-channel midpoints, to identify crossovers. It opens long positions when the Conversion Line moves above the Base Line and price is above the 200-day EMA; a downward crossover is used to close the position. The document also describes the Lagging Span and leading lines as possible support, resistance, and trend-alignment checks.

The included strategy settings and source specify a Bitcoin versus USDT futures backtest over a stated date range, but the document gives no performance statistics or conclusions from that test. The written explanation recommends confirming crossovers with longer-term direction and avoiding signals when leading-line alignment is unfavorable. It warns that ranging markets can produce false signals and that parameter tuning may lead to missed or mistimed trades. Volume, ATR-based exits, and position sizing are suggested as possible additions, rather than established parts of the described rules.

Key ideas

• A Conversion Line crossing above the Base Line triggers a long signal when price is above the 200-day EMA.
• A downward Conversion and Base Line crossover closes the position.
• The leading lines and Lagging Span are presented as additional trend and support-resistance context.
• The document provides backtest settings but no outcome metrics, and cautions that ranging markets can generate false signals.

Tags

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