Ichimoku Conversion Line Breaks Filtered by ADX

Summary

This short-term strategy combines Ichimoku levels with directional movement and ADX calculations. It enters when price crosses the conversion line, with positive directional movement supporting longs and negative directional movement supporting shorts; the ADX threshold is intended to keep trades within trending conditions. The described Ichimoku configuration uses conversion, base, and span periods, and the example includes a trading-session filter plus fixed tick-based stop and target exits.

The document supplies rules and parameters, along with a brief backtest setup, but reports no measured results. It presents a favorable reward-to-risk calculation as an advantage without evidence that the strategy is profitable. Its risks include delayed or failed trend signals, stop execution during fast markets, and the session restriction. Parameter tuning, trailing exits, and product-specific settings are suggested, but would need independent testing.

Key ideas

• Price crossing the conversion line provides the directional entry trigger.
• Directional movement and an ADX threshold are used to screen for trending conditions.
• The example sets fixed stop and target distances and can restrict trading to a session.
• The document provides no reported performance evidence, so its profitability claims remain unverified.

Tags

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