Kumo Breakout Trading System

Kumo Breakout trading system can be used on multiple time frames.. Kumo breakout trading is trend following system.

Buy signal when the price close abve the Kumo.

Sell signal whe the price close below the Kumo.

In the chart in picture below there is a kumo breakout buy signal:

Entry

The entry for the kumo breakout trading strategy is - when price closes above/below the kumo, the trader places a trade in the direction of the breakout. To confirm this breakout occurs if a higher time frame there was the rotura of Kumo. This multi-time frame analysis avoids some false signals.

Exit

Exit when the price exit at opposite side of the kumo, this assures more profit and less risk.

Stop-Loss 

Stop-loss for the kumo breakout system is placed on the opposite side of the kumo.

Take Profit the method for make profit with Kumo breakout is move stop loss up/down with the kumo

Example

In the chart in picture below for AUD/USD we can see a bearish kumo breakout taking place at point A. We also see that the kumo is bearish as well, which acts to confirm our breakout sentiment. Given that price is exiting from a flat-bottom kumo and that we want to reduce any risks of entering on a false breakout, we look for a close below the last chikou span support at .7600 before entering. The close we are looking for is achieved shortly thereafter at point B and we enter short. For our stop-loss, we follow the kumo breakout guideline of placing it 10 - 20 pips away from the opposite side of the kumo where our breakout is taking place. In this case, we place it 20 pips away from the top of the kumo above our entry candle at point C (.7994). Once we place our entry and stop-loss orders, we merely wait for the trade to unfold while continually moving our stop-loss down with the prevailing kumo. Given that we are using the Weekly chart as our execution time frame, we prepare ourselves for a very long-term trade. In this case, nearly two years later, price rises enough to break out of the kumo to the other side, where it triggers our buy order some 20 pips away at point D netting us over 1100 pips in the process.

In the next examples there is a buy signal GBP/USD 30 min time frame confirmed by the chart at 60 min time frame.