The Kumo Breakout

Indicators:

• Ichimoku (8, 29, 34) — only the Kumo zone (Tenkan-Sen, Kijun-Sen, and Chinkou Span are disabled)

• Awesome Oscillator (standard settings)

Key conditions: the entry search timeframe is M15, and the transaction tracking timeframe is H1 or higher.

BUY conditions (all conditions must be met):

• the upper boundary of the Kumo is broken down

• the Awesome Oscillator histogram reverses from below to above the zero line

SELL conditions (all conditions must be met):

• the lower boundary of the Kumo is broken down

• the Awesome Oscillator histogram reverses from above to below the zero line

Exit criteria: exit the trade when the Awesome Oscillator histogram breaks below the zero line

Exercise:

Open a chart with the M15 timeframe for entry and H1 for tracking.

Apply the Ichimoku indicator with settings (8, 29, 34) and disable Tenkan-Sen, Kijun-Sen, and Chinkou Span. Add the Awesome Oscillator with standard parameters.

Identify a BUY signal where the price breaks below the upper Kumo boundary and the AO histogram reverses upwards. Enter a long position and set a stop-loss below the recent swing low.Monitor the trade and exit when the AO histogram breaks below the zero line.

Repeat the process for a SELL signal by looking for a breakdown of the lower Kumo boundary and an AO histogram reversal downwards.