Ichimoku Chikou Span Confirmation

Entry Logic

• Exact Entry Trigger: The Chikou Span (Lagging Span) is used as a confirmation filter. For a long signal (e.g., Kumo breakout, TK cross), the Chikou Span must be above the price from 26 periods ago.
• Confirmation: This is a confirmation tool, not a primary entry signal.
• Timeframe: Any.
• Market Condition: Trending.

Exit Logic

• Exit Signal: Consider exiting a long position if the Chikou Span crosses below the price from 26 periods ago.

Stop Loss Structure

• N/A: This is a confirmation indicator.

Risk Management Framework

• N/A

Position Sizing Model

• Conviction Sizing: Increase size if the Chikou Span confirms the trade. Decrease size if it does not.

Trade Filtering

• Filter: Do not take long trades if the Chikou Span is below price. Do not take short trades if it is above price.

Context Framework

• Trend Direction: A free Chikou Span confirms a clear, unobstructed trend.

Trade Management Rules

• N/A

Time Rules

• N/A

Setup Classification

• A+ Setup: Any primary Ichimoku signal that has Chikou Span confirmation.
• C Setup: Any primary signal that does not have Chikou Span confirmation.

Market Selection Criteria

• N/A

Statistical Edge Metrics

• Impact: Using the Chikou Span as a filter significantly increases the win rate and profit factor of other Ichimoku signals.

Failure Conditions

• N/A

Psychological Rules

• Discipline: Do not ignore the Chikou Span. A signal without its confirmation is a low-probability trade.

Advanced Components

• N/A

Location

• Strongest: When used as the final confirmation for any Ichimoku-based trade.