Can the Ichimoku Cloud Strategy Indicator Be Profitable?

Why is the Ichimoku Cloud indicator so popular when it looks like a mess? Why is it called the best indicator for new traders? How can you trade it to make more money? Which Cloud strategy is the right one? How can you use the Ichimoku Cloud indicator properly without blowing up your accounts? Let’s find out.

If you have never seen this indicator before, don’t be scared away by its complex appearance. It looks scary and confusing at first, but if you are a new trader, learning to use this indicator will make you a disciplined trader. Other indicators are easy to understand but difficult to execute properly. This indicator might be difficult to understand initially, but it is very easy to use for executing trades in live markets.

In this video, we are going to learn about the Ichimoku Cloud indicator and a famous trading strategy based on it. As always, I will also test the Ichimoku Cloud indicator 100 times to determine its real win rate and ensure it works. However, I will do that in a separate video, so subscribe to see it. I have already tested MACD, RSI, CCI, ADX, and other indicators 100 times to find their real win rates. Check those videos out if you want. After all, you don’t want to risk your money on a strategy that doesn’t work.

What Is the Ichimoku Cloud Indicator?
This is how the Ichimoku Cloud indicator looks. Yes, it appears to be a big mess. On TradingView, the Ichimoku Cloud indicator comes with five lines: a blue line called the conversion line, a red line called the base line, a green line called the lagging span, and two other lines that form the Cloud. We will understand these lines one by one to avoid confusion. Let’s start with the conversion line and the base line. These are the two lines that will give you entry signals. These lines are basically two moving averages: the blue line is a 9-period moving average, and the red line is a 26-period moving average.

Sounds very confusing, I know. But the Ichimoku Cloud is one of the most complex indicators out there. It scares new traders away, but if you stick with it and spend time understanding it properly, it will make you a better trader. Unlike other simple indicators, the Ichimoku Cloud shows more data to the trader, including the direction of the trend, the strength of the trend, and entry signals using the conversion and base lines.

Why the Ichimoku Cloud Is Great for New Traders
This is why the Ichimoku Cloud is the best indicator for new traders. You don’t have to spend time learning different indicators; just learn to use the Ichimoku Cloud, and you should be good. When you become an experienced trader, you can remove a few lines from the Ichimoku indicator if you find it distracting. Because, when you become experienced, you should be able to identify the direction and strength of the trend without using any indicators.

Important Tips for Trading
There is no strategy in this world that works 100 percent of the time, so manage your money properly. Don’t risk too much capital on a single trade.

If you want to know the real win rate of this Ichimoku Cloud strategy, subscribe now because, in the next video, I’m going to test this indicator 100 times to ensure it works. After all, you don’t want to risk your money on something that doesn’t work.

If you want to know about the best MACD trading strategy that I back-tested 100 times to see if that strategy is profitable or just fake, check out the first video on this channel. And check out other strategies that I tested 100 times, like the CCI and Bollinger Bands.

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