Ichimoku's power comes from requiring ALL four prerequisites to align before entering a Kumo Breakout trade. This checklist eliminates low-quality signals and keeps you out of choppy markets. The Live ETH example shows how a trade entered at 640 with all four prerequisites confirmed rode to 1,035+ using only the Kijun as a trailing stop — capturing the full meat of the trend.
P1: Price closing ABOVE the Kumo (for longs) / BELOW the Kumo (for shorts)
ALL FOUR must be met — if even one is missing, the Kumo Breakout setup is NOT valid
Remember: Ichimoku ONLY works in trending markets — check your higher timeframe for trend first
Lesson
Entering and Exiting with Ichimoku
Once all four prerequisites are confirmed, there are three entry options based on your risk tolerance. The exit method is equally systematic: use the Kijun as a trailing stop, moving it up as price creates new swing highs. When price closes below Kijun, the trend is likely over — exit. This captures the full trend without second-guessing.
Entry Option 1 (Blind Market Order): immediately enter long/short once all 4 prerequisites are met; most aggressive; may get a less favourable fill
Entry Option 2 (Tenkan Retest): wait for price to pull back to the Tenkan-sen after prerequisites are met; place bids at Tenkan; cleaner entry, slightly lower risk
Entry Option 3 (Sr Flip LTE): wait for a retest of a key Sr flip level using the full LTE framework; most conservative and highest probability entry
Exit — Kijun Trailing Stop: move stop to below Kijun as each new higher high is set; Kijun dynamically follows the trend; when price CLOSES below Kijun = exit signal
ETH Live Example: all 4 prerequisites met at 640 → enter at Tenkan retest → stop at Kijun (603) → rode from 640 to 1,035+ → exited at 890 on Kijun close = massive win
Fake-outs exist — always wait for the candle to CLOSE below Kijun before exiting; do not react mid-candle
Partial profits at key swing levels are also valid inside an Ichimoku trend trade
Check Yourself
All four Kumo Breakout prerequisites have been confirmed. You decide to wait for a cleaner entry instead of entering immediately at market. Price then pulls back to touch the Tenkan-sen (Conversion Line). What is the correct entry action?
Enter long at the Tenkan-sen — Entry Option 2: cleaner entry after prerequisites are already confirmed
The pullback to Tenkan invalidates the prerequisites — stand aside; do not enter
Wait for price to pull back all the way to the Kijun-sen for the most conservative possible entry
Answer it (with a live chart) in the interactive lesson.
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