I would like to share an Interesting trend trading strategy for Intraday traders conbining Inchimoku and Supertrend Indicator.
Here are the ground rules for trading this strategy: ( you can look at the attached chart to understand more)
- Because this is a Intraday strategy I suggest 3 minutes. You will get many opportunities to play and exit.
- To use this indicator Implement Ichimoku only cloud on Kite. not any other lines of Ichimoku. On a white backround chart you can make all other lines of Ichimoku to white.
- Add Supertrend Indicator on the same. default settings (7,3) will do fine
- Please note that Ichmoku cloud Indicates the trend Inclination of the market. Price above cloud is more oriented towards Bulls and Price below cloud is more oriented towards bears. price within clouds tend to more towards sideways movement.
- You can only trade when the price is above cloud or below cloud. not when it is in the cloud.
- When price is above cloud take only buy calls on Supertrend with with strict stoploss of supertrend line. Take sell calls using Supertrend when the price is below cloud ( again with strict stoploss). In kite you will get sell and buy indicators so it is easy for you to exit and enter.
- Please note that like any strategy this also fails often but you can make money consistently if you are disciplined about stoploss.
I wish you best…