As we read in the last article, How to use Ichimoku Cloud in Forex?:
But there is an interesting question. What is the best Ichimoku indicator settings?
As we know below are main Ichimoku components:
So we want to test two major Ichimoku settings 7,22,44 and 9,26,52. How we can do that?
What we find out when we compared different Ichimoku settings? :
Basic Ichimoku settings for Tenkan-sen is 9, Kyun-sen is 26, and Senkou Span B is 52 is several percents better in testing than Ichimoku settings 7 22 44 (Tenkan-sen is 7, Kyun-sen is 22, and Senkou Span B is 44 ). We tested these two most commonly used settings, on the Daily chart, for the last 20 years time frame. Major pairs EURJPY, GBPJPY, AUDJPY, USDJPY, NZDJPY were used.
Rules:
Buy if default red Tenkan Sen line crosses above the default blue Kijun sen line and both lines along with the price being above the cloud on Daily Chart.
Sell if the Red Tenkan Sen line crosses below the Blue line while the price and both lines are found under the cloud.
Stop-loss 1 Daily Average true range for the last 14 days.
Target the same.
After testing almost 4% of results are better using default settings 9,26,52.
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