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The 21 EMA + Ichimoku Cloud Strategy for Trend Confirmation

Last Updated on February 24, 2025 by Arif Chowdhury

Are you tired of chasing trades that don’t go your way?

Frustrated by the constant uncertainty in the markets?

I get it.

As a seasoned Forex trader since 2015, I’ve felt those same struggles.

Finding a reliable strategy can feel like searching for a needle in a haystack.

But today, I want to share a game-changer in my trading journey: The 21 EMA + Ichimoku Cloud Strategy for Trend Confirmation.

Let’s dive into why this strategy works and how you can leverage it for consistent profitability.

What is the 21 EMA?

The 21 Exponential Moving Average (EMA) is a powerful trend indicator.

It smooths out price data and responds quickly to price changes.

Here’s why the 21 EMA stands out:

  • Dynamic Indicator: It adjusts based on recent price action.
  • Trend Identification: Helps you determine whether you’re in an uptrend or downtrend.
  • Support and Resistance: Often acts as a guide for potential support or resistance levels.

The Ichimoku Cloud Explained

Next up, the Ichimoku Cloud.

This isn’t just another indicator; it’s a comprehensive trading system encompassing five lines.

Here’s the breakdown:

  • Tenkan-sen: Short-term trend line.
  • Kijun-sen: Medium-term trend line.
  • Senkou Span A & B: These lines form the cloud and help to identify future support and resistance.
  • Chikou Span: A lagging line that provides additional confirmation.

The cloud itself can help you identify:

  • Bullish Trends: When price is above the cloud.
  • Bearish Trends: When price is below the cloud.
  • Sideways Markets: When price is within the cloud.

Why Combine Them?

Now, you might wonder why combine the 21 EMA with the Ichimoku Cloud.

The answer is simple: confirmation.

  • Trend Confirmation: Use the 21 EMA to identify the trend direction and the Ichimoku Cloud to confirm it.
  • Risk Reduction: This combination can help filter out false signals.
  • Enhanced Profitability: You can enter trades with a higher probability of success.

How to Apply This Strategy

Here’s a quick guide on how to implement the 21 EMA + Ichimoku Cloud Strategy:

  1. Set Up Your Charts:
    • Add the 21 EMA.
    • Add the Ichimoku Cloud with its default settings.
  2. Identify the Trend:
    • Look for the price relative to the Ichimoku Cloud.
    • Is the price above the cloud? You’re in a bullish trend.
    • Is the price below the cloud? You’re in a bearish trend.
  3. Confirm with the 21 EMA:
    • In a bullish trend, look for the price to be above the 21 EMA.
    • In a bearish trend, look for the price to be below the 21 EMA.
  4. Enter Your Trade:
    • Buy when the price bounces off the 21 EMA in an uptrend.
    • Sell when the price retraces to the 21 EMA in a downtrend.
  5. Set Your Stop Loss and Take Profit:
    • Always manage your risk. A good rule of thumb is to set your stop loss just beyond the cloud or recent swing high/low.

My Trading Bots and the 21 EMA + Ichimoku Strategy

Here’s where it gets even better.

I’ve integrated the 21 EMA + Ichimoku Cloud Strategy into my 16 trading bots.

These bots are designed to trade on major currency pairs like EUR/USD, GBP/USD, USD/CHF, and USD/JPY.

Each bot is diversified to minimize risk while aiming for consistent returns.

  • Long-Term Focus: My bots target 200-350 pips, maximizing performance over time.
  • Backtested Excellence: They’ve been backtested for the last 20 years, proving effective under tough market conditions.
  • Completely FREE: You can access this exceptional EA portfolio without any cost.

If you’re ready to step up your trading game, check out my trading bots here.

The Importance of Choosing the Right Broker

Now, let’s talk about the foundation of any trading strategy: your broker.

Choosing the right broker is crucial for executing your trades effectively.

Here’s what to consider:

  • Tight Spreads: Look for brokers that offer competitive spreads to maximize your profits.
  • Fast Execution: Delays can eat into your profits. Choose brokers with proven execution speeds.
  • No Hidden Fees: Transparency is key. Avoid brokers with hidden costs.

I’ve tested several brokers, and you can find my top recommendations here.

Conclusion

The 21 EMA + Ichimoku Cloud Strategy for Trend Confirmation is a robust approach to Forex trading.

When combined, these tools provide clarity and confidence in your trading decisions.

With my 16 trading bots, you can automate this strategy and enhance your trading experience.

Don’t miss out on the chance to elevate your trading game.

Embrace this strategy, and take control of your trading future!