Overview
Ichimoku Cloud Tenkan Kijun Crossover is a trend-following strategy based on the classic Ichimoku indicator.
The strategy uses two of the main Ichimoku components: Tenkan-sen and Kijun-sen. Tenkan-sen reacts faster to recent price movement, while Kijun-sen is calculated over a longer period and changes more slowly.
The strategy looks for crossover conditions between these two lines:
The strategy looks for breakout conditions when price moves beyond the recent range:
- A long signal is generated when Tenkan-sen crosses above Kijun-sen.
- A short signal is generated when Tenkan-sen crosses below Kijun-sen.
This makes the strategy suitable for testing trend-following market behavior, where changes in short-term momentum relative to the broader price trend are used to identify potential entries.
Signal Logic
Ichimoku Cloud Tenkan Kijun Crossover uses the relationship between Tenkan-sen and Kijun-sen as the main signal source.
Tenkan-sen is the faster line and reflects shorter-term price movement.
Kijun-sen is the slower line and reflects price movement over a longer period.
When Tenkan-sen crosses above Kijun-sen, the strategy treats it as a bullish signal.
When Tenkan-sen crosses below Kijun-sen, the strategy treats it as a bearish signal.
Ichimoku Cloud
| Parameter | Description |
|---|---|
| Conversion (Tenkan) period | Defines the lookback period used to calculate Tenkan-sen. Smaller values make Tenkan-sen more reactive to recent price movement. This can produce earlier crossover signals, but may also increase sensitivity to short-term market noise. Larger values make Tenkan-sen smoother and slower. This can reduce noise and produce fewer signals, but crossovers may occur later. |
| Base (Kijun) period | Defines the lookback period used to calculate Kijun-sen. Smaller values make Kijun-sen react more quickly to changing market conditions, causing the distance between the two Ichimoku lines to adjust faster. Larger values make Kijun-sen smoother and slower, generally requiring a more sustained price move before a crossover occurs. |
| Leading (Senkou) span B period | Defines the lookback period used to calculate Senkou Span B, one of the two boundaries of the Ichimoku Cloud. Smaller values make Senkou Span B more responsive to recent price movement. Larger values produce a smoother and slower-moving cloud boundary based on a broader price range. |
| Span displacement | Defines how far the Ichimoku Cloud is shifted forward on the chart. This parameter affects the placement of the cloud relative to current price and the other Ichimoku components. |
| Lagging (Chikou) displacement | Defines how far the Chikou Span (Lagging Span) is shifted backward on the chart. Smaller values place the lagging line closer to current price action. Larger values shift it further into the past, changing how the lagging component aligns with historical price data. |
Common Features
Each strategy has its own signal logic, but installation, setup, and trade management are identical across the product line. Once you know how to use one, you know how to use the rest.
See also: