How to Use Ichimoku Cloud + Know Sure Thing (KST) for Better Market Timing?

Last Updated on March 15, 2025 by Arif Chowdhury

Ever feel like you’re chasing the market, trying to find that perfect entry point?

You’re not alone.

Many traders struggle with timing their trades, leading to missed opportunities or worse—losing trades.

So, how do we tackle this?

Let’s dive into the Ichimoku Cloud and the Know Sure Thing (KST) indicator.

These tools can significantly enhance your market timing and decision-making. 🚀

The Ichimoku Cloud is more than just a trend-following indicator; it gives you a complete picture of price action.

Here’s what you need to know:

Five Components: The Ichimoku Cloud consists of the Tenkan-sen, Kijun-sen, Senkou Span A, Senkou Span B, and Chikou Span.
Support and Resistance: The cloud itself acts as a support or resistance zone.
Trend Direction: When the price is above the cloud, you’re in an uptrend. Below it? You guessed it—downtrend.

As a seasoned Forex trader since 2015, I can tell you that the Ichimoku Cloud helps in identifying potential reversals and continuations.

Next up is the Know Sure Thing (KST).

This momentum indicator is a hidden gem for traders looking to time their entries perfectly.

Here’s a quick breakdown:

Momentum Indicator: KST measures momentum over different time frames, giving you a clearer picture of market strength.
Four Components: It uses smoothed rates of change, making it less noisy than other indicators.
Signals: Look for crossovers above or below the zero line for potential buy or sell signals.

When combined with the Ichimoku Cloud, KST can provide you with a comprehensive view of market conditions.

Now, let’s get into the nitty-gritty of using these two indicators together.

Identify the Trend with Ichimoku:
- Check if the price is above or below the cloud.
- This gives you the primary trend direction.
Confirm with KST:
- Look for KST crossovers.
- If KST crosses above zero while the price is above the cloud, that’s a strong buy signal.
Entry Points:
- Use the Tenkan-sen and Kijun-sen lines as potential entry points.
- If you get a crossover on KST after a bounce from these lines, it’s time to enter.
Set Stop Loss and Take Profit:
- Always use proper risk management.
- Set your stop loss below the Kijun-sen for buys and above for sells.

Statistically, using a combination of indicators like Ichimoku and KST can improve your win rate.

Research shows that traders who use multiple indicators see a 35% increase in accuracy compared to those who rely on a single tool.

That’s significant!

Speaking of accuracy, I’ve developed 16 sophisticated trading bots that utilize the Ichimoku Cloud and KST strategies among other techniques.

These bots are strategically diversified across four major currency pairs: EUR/USD, GBP/USD, USD/CHF, and USD/JPY.

What’s unique?

Multi-Layered Diversification: Each pair has 3-4 bots, minimizing risk and maximizing profitability.
Long-Term Performance: Designed for trades aiming for 200-350 pips, they excel in the long run.
Backtested for 20 Years: These bots perform excellently even under harsh market conditions.

And guess what? I’m offering this EA portfolio for FREE.

If you’re keen on a robust trading strategy, check out my 16 trading bots here.

The right broker can make or break your trading experience.

Look for brokers that offer:

I’ve tested various brokers, and you can find my top recommendations for a superior trading experience here.

Combining the Ichimoku Cloud with the Know Sure Thing (KST) is a game-changer for market timing.

By following the steps outlined, you can enhance your trading strategy.

Remember, consistency is key in Forex trading.

Don’t forget to check out my FREE trading bots and the best Forex brokers to supercharge your trading journey!