Ichimoku + EMA + RSI [Enhanced]# **Ichimoku + EMA + RSI Strategy - User Instructions**
---
## **📋 TABLE OF CONTENTS**
1. (#installation)
2. (#strategy-overview)
3. (#parameter-configuration)
4. (#understanding-the-dashboard)
5. (#entry--exit-rules)
6. (#best-practices)
7. (#optimization-guide)
8. (#troubleshooting)
---
## **🚀 INSTALLATION**
### **Step 1: Add to TradingView**
1. Open TradingView.com
2. Click **Pine Editor** (bottom of screen)
3. Click **"New"** → Select **"Blank indicator"**
4. Delete all default code
5. **Copy and paste** the complete script
6. Click **"Save"** (give it a name: "Ichimoku EMA RSI Strategy")
7. Click **"Add to Chart"**
### **Step 2: Verify Installation**
✅ You should see:
- Orange **200 EMA** line
- Blue **Tenkan** line
- Red **Kijun** line
- Green/Red **Cloud** (Ichimoku cloud)
- **Dashboard** in top-right corner
- **Strategy Tester** tab at bottom
---
## **📊 STRATEGY OVERVIEW**
### **What This Strategy Does**
Combines three powerful technical indicators to identify high-probability trades:
| Component | Purpose |
|-----------|---------|
| **200 EMA** | Determines overall trend direction |
| **Ichimoku Cloud** | Provides support/resistance and momentum |
| **RSI** | Filters momentum strength |
| **Dashboard** | Real-time signal analysis |
### **Trading Logic**
- **LONG**: Enter when all bullish conditions align
- **SHORT**: Enter when all bearish conditions align
- **EXITS**: Automatic via trailing stops, cloud breach, or TK cross reversal
---
## **⚙️ PARAMETER CONFIGURATION**
### **🔵 Trend Filter Settings**
```
EMA Length: 200 (default)
```
- **Lower (100-150)**: More sensitive, faster signals
- **Higher (250-300)**: More stable, slower signals
- **Recommendation**: Keep at 200 for most timeframes
---
### **🟢 RSI Settings**
```
RSI Length: 14 (default)
RSI Long Minimum: 55
RSI Short Maximum: 45
```
**Adjustment Guide:**
- **Aggressive** (more signals): Long=50, Short=50
- **Balanced** (default): Long=55, Short=45
- **Conservative** (fewer signals): Long=60, Short=40
---
### **🟡 Ichimoku Settings**
```
Tenkan Period: 9
Kijun Period: 26
Senkou B Period: 52
Displacement: 26
```
**Standard Configurations:**
| Timeframe | Tenkan | Kijun | Senkou B |
|-----------|--------|-------|----------|
| **1H - 4H** | 9 | 26 | 52 |
| **15m - 1H** | 7 | 22 | 44 |
| **Daily** | 9 | 26 | 52 |
**Filters:**
- ✅ **Require Chikou Confirmation**: Adds extra validation (recommended)
- ✅ **Require Cloud Position**: Price must be above/below cloud (recommended)
---
### **🔴 Risk Management**
```
ATR Length: 14
ATR Stop Loss Multiplier: 2.0
ATR Take Profit Multiplier: 3.0
Min Bars Between Trades: 3
```
**Risk/Reward Profiles:**
| Profile | SL Multiplier | TP Multiplier | Description |
|---------|---------------|---------------|-------------|
| **Conservative** | 2.5 | 4.0 | Wider stops, higher R:R |
| **Balanced** | 2.0 | 3.0 | Default settings |
| **Aggressive** | 1.5 | 2.5 | Tighter stops, faster exits |
---
### **🎨 Display Settings**
```
Show Dashboard: ON
Show Entry Signals: ON
```
- **Dashboard**: Shows real-time analysis
- **Entry Signals**: Green/Red arrows on chart
---
## **📈 UNDERSTANDING THE DASHBOARD**
### **Dashboard Components**
```
┌─────────────────────┬──────────┐
│ Component │ Status │
├─────────────────────┼──────────┤
│ EMA Trend │ BULL/BEAR│
│ Cloud │ ABOVE/BELOW/INSIDE│
│ TK Cross │ BULL/BEAR│
│ RSI │ 55.3 │
│ Chikou │ BULL/BEAR│
│ Signal │ STRONG LONG│
└─────────────────────┴──────────┘
```
### **Signal Interpretation**
| Signal | Score | Meaning | Action |
|--------|-------|---------|--------|
| **STRONG LONG** | 7+ | All conditions aligned | High confidence LONG |
| **LONG** | 4-6 | Most conditions met | Moderate confidence |
| **NEUTRAL** | <4 | Mixed signals | Wait for clarity |
| **SHORT** | 4-6 | Bearish bias | Moderate SHORT |
| **STRONG SHORT** | 7+ | All bearish conditions | High confidence SHORT |
---
## **📍 ENTRY & EXIT RULES**
### **✅ LONG ENTRY CONDITIONS**
All must be TRUE:
1. ✅ Price **above** 200 EMA
2. ✅ Price **above** Ichimoku Cloud
3. ✅ Tenkan **crosses above** Kijun (TK Bull Cross)
4. ✅ RSI **above** 55
5. ✅ Chikou **above** price 26 bars ago
6. ✅ Minimum bars since last trade met
**Visual Confirmation:**
- 🟢 Green triangle **below** candle
- Dashboard shows **"STRONG LONG"**
---
### **❌ LONG EXIT CONDITIONS**
Any ONE triggers exit:
1. ❌ Price closes **below** cloud bottom
2. ❌ Tenkan **crosses below** Kijun
3. ❌ ATR trailing stop hit (2.0 × ATR)
4. ❌ Take profit hit (3.0 × ATR)
---
### **✅ SHORT ENTRY CONDITIONS**
All must be TRUE:
1. ✅ Price **below** 200 EMA
2. ✅ Price **below** Ichimoku Cloud
3. ✅ Tenkan **crosses below** Kijun (TK Bear Cross)
4. ✅ RSI **below** 45
5. ✅ Chikou **below** price 26 bars ago
6. ✅ Minimum bars since last trade met
**Visual Confirmation:**
- 🔴 Red triangle **above** candle
- Dashboard shows **"STRONG SHORT"**
---
### **❌ SHORT EXIT CONDITIONS**
Any ONE triggers exit:
1. ❌ Price closes **above** cloud top
2. ❌ Tenkan **crosses above** Kijun
3. ❌ ATR trailing stop hit (2.0 × ATR)
4. ❌ Take profit hit (3.0 × ATR)
---
## **💡 BEST PRACTICES**
### **Recommended Timeframes**
| Timeframe | Trading Style | Signals/Week |
|-----------|---------------|--------------|
| **15m** | Scalping | 20-30 |
| **1H** | Day Trading | 10-15 |
| **4H** | Swing Trading | 5-10 |
| **Daily** | Position Trading | 2-5 |
---
### **Asset Classes**
✅ **Best Performance:**
- Major Forex pairs (EUR/USD, GBP/USD)
- Crypto (BTC/USD, ETH/USD)
- Major indices (SPX, NAS100)
⚠️ **Use Caution:**
- Low liquidity pairs
- Highly volatile altcoins
- Stocks with gaps
---
### **Risk Management Rules**
```
1. Never risk more than 2% per trade
2. Use the built-in ATR stops (don't override)
3. Respect the "Min Bars Between Trades" cooldown
4. Don't trade during major news events
5. Monitor dashboard - only trade STRONG signals
```
---
## **🔧 OPTIMIZATION GUIDE**
### **Step 1: Run Initial Backtest**
1. Open **Strategy Tester** tab (bottom of screen)
2. Set date range (minimum 6 months)
3. Review:
- **Net Profit**
- **Win Rate** (target: >50%)
- **Profit Factor** (target: >1.5)
- **Max Drawdown** (target: <20%)
---
### **Step 2: Optimize Parameters**
**If Win Rate is Low (<45%):**
- Increase RSI thresholds (Long=60, Short=40)
- Enable both Chikou + Cloud filters
- Increase "Min Bars Between Trades" to 5
**If Too Few Signals:**
- Decrease RSI thresholds (Long=50, Short=50)
- Reduce EMA to 150
- Adjust Ichimoku to faster settings (7/22/44)
**If Drawdown is High (>25%):**
- Increase ATR Stop Loss Multiplier to 2.5
- Add longer cooldown period (5+ bars)
- Trade only STRONG signals
---
### **Step 3: Forward Test**
```
1. Paper trade for 2-4 weeks
2. Compare results to backtest
3. Adjust if live results differ significantly
4. Only go live after consistent paper trading success
```
---
## **🛠️ TROUBLESHOOTING**
### **Problem: No Signals Appearing**
**Solutions:**
- Check RSI levels aren't too restrictive
- Verify timeframe is appropriate (try 1H or 4H)
- Ensure both filters aren't enabled on ranging markets
- Review dashboard - components may be conflicting
---
### **Problem: Too Many Losing Trades**
**Solutions:**
- Enable **both** Chikou + Cloud filters
- Increase RSI thresholds (more conservative)
- Only trade when dashboard shows "STRONG" signals
- Increase cooldown period to avoid overtrading
---
### **Problem: Dashboard Not Showing**
**Solutions:**
- Verify "Show Dashboard" is enabled in settings
- Check chart isn't zoomed out too far
- Refresh chart (F5)
- Re-add indicator to chart
---
### **Problem: Stops Too Tight/Wide**
**Solutions:**
- **Too Tight**: Increase ATR Stop Loss Multiplier to 2.5-3.0
- **Too Wide**: Decrease to 1.5-1.8
- Verify ATR Length is appropriate for timeframe
- Consider asset volatility (crypto needs wider stops)
---
## **📞 QUICK REFERENCE CARD**
```
═══════════════════════════════════════════════════
STRATEGY QUICK REFERENCE
═══════════════════════════════════════════════════
BEST TIMEFRAMES: 1H, 4H, Daily
BEST ASSETS: Major Forex, BTC, ETH, Indices
RISK PER TRADE: 1-2% of capital
LONG ENTRY:
✓ Price > 200 EMA
✓ Price > Cloud
✓ TK Bull Cross
✓ RSI > 55
✓ Dashboard = STRONG LONG
SHORT ENTRY:
✓ Price < 200 EMA
✓ Price < Cloud
✓ TK Bear Cross
✓ RSI < 45
✓ Dashboard = STRONG SHORT
EXITS:
× Cloud breach
× TK reverse cross
× ATR trailing stop
× Take profit (3:1 R:R)
═══════════════════════════════════════════════════
```
---
## **⚠️ DISCLAIMER**
This strategy is for **educational purposes only**. Always:
- Backtest thoroughly on your specific assets
- Paper trade before going live
- Never risk more than you can afford to lose
- Past performance ≠ future results
- Consider market conditions and your risk tolerance
---
**Happy Trading! 📈**
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