The "Ichimoku Cloud" binary options strategy on the Quotex platform is built around a trend-following approach to opening trades. It is based on the popular Ichimoku indicator, which not only shows the current state of the market but also helps predict future support and resistance levels. In this review, we look at which signals from this comprehensive system are best suited to binary options trading.
Contents:
Key Features of the Quotex "Ichimoku Cloud" Binary Options Strategy
- Terminal: Quotex Webtrader
- Timeframe: M5
- Expiration: 5 candles
- Option types: Call/Put
- Built-in indicators: Ichimoku Cloud
- Trading instruments: currency pairs, commodities, cryptocurrencies, stocks
- Trading hours: 06:00–18:00 UTC
- Recommended brokers: Quotex
Installing the Quotex "Ichimoku Cloud" Binary Options Strategy
The indicator for the Quotex "Ichimoku Cloud" strategy is added in the standard way. Open the main window of the trading platform, go to the indicator selection menu in the "Trading" section, choose the indicator you need from the list, and configure its parameters.
Quotex "Ichimoku Cloud" Binary Options Strategy: Overview and Settings
The Ichimoku indicator was created to make candlestick analysis more accurate and more visual. It is available in the Quotex terminal under the name Ichimoku Cloud. There are many ways to trade with it, but not all of them are suitable for binary options. In this review, we look at its most effective application.
Ichimoku is a set of moving averages combined into a single trading system. The default parameters of these lines do not need to be changed — they are already optimally configured and provide an excellent indication of trend direction.
Four of the five Ichimoku lines are calculated as the average value between the high and low price over a selected period. Essentially, these are modified moving averages. For example, the Tenkan line reflects the average price range over the last nine candles, while the Kijun line reflects the average price range over the last 26 candles.
The main entry signal is a crossover of the Tenkan and Kijun moving averages. A candle closing beyond the cloud acts as an additional trend filter, helping to eliminate weak trading signals and improve trade accuracy.
The example above shows a signal to open a Put option. The yellow Tenkan line crosses the purple Kijun line from top to bottom, and the cloud formed by the Senkou Span A and Senkou Span B lines is above the price, confirming a downtrend. The conditions for opening a Call option are the opposite: the Tenkan line crosses the Kijun line from bottom to top, and the candle closes above the cloud.
To add the Ichimoku indicator to a chart in the Quotex terminal, open the indicator menu and select Ichimoku Cloud from the list of tools.
A settings window will then open, where you can set the calculation periods for the Tenkan, Kijun, and Senkou Span A and B lines, and choose their colour and thickness for easier visual analysis.
The indicator's default parameters can be left unchanged. Although its creator, Goichi Hosoda, originally developed Ichimoku for daily and weekly charts, the modern Quotex platform allows it to be used effectively even on minute timeframes.
Trading Rules for the Quotex "Ichimoku Cloud" Strategy
The Ichimoku Cloud strategy uses only one type of signal: a crossover of the yellow Tenkan line and the purple Kijun line. If the crossover occurs above the cloud formed by the Senkou Span A and Senkou Span B lines, you open a Call option. If it forms below the cloud, that is a signal to buy a Put option.
To improve the effectiveness of this trading system, you can also use Price Action patterns. For information on how to apply them in practice, see our collection of articles on the topic:
- Price Action in Binary Options
- Pattern indicators for MetaTrader 4
- Top 7 Patterns in Binary Options
Opening a Call Option
- The price is above the cloud — the market is in a bullish trend.
- The yellow Tenkan line has crossed the purple Kijun line from bottom to top.
- At the open of the next candle, buy a Call option.
Opening a Put Option
- The price is below the cloud — the market is in a bearish trend.
- The yellow Tenkan line has crossed the purple Kijun line from top to bottom.
- At the open of the next candle, buy a Put option.
The expiration time should be set to five candles, although you can experiment with other expiration times.
Specifics of Using the Quotex "Ichimoku Cloud" Binary Options Strategy
The strategy is built on a multi-functional indicator that gives traders a complete picture of the market: whether it is in a bullish or bearish trend, where the support and resistance levels lie, and what direction price momentum is moving in. All of this information is available at a glance.
The strategy focuses on the price's position relative to the cloud — and for good reason. The cloud, formed by Senkou Span A and Senkou Span B, is the core of this tool. As long as the price stays above the cloud, the market is in a stable bullish trend; below it, the market is bearish. When the price enters the cloud, this indicates a flat market and uncertainty, and during such periods it is best to stay out of the market.
Pros of the Quotex "Ichimoku Cloud" Strategy
The main advantage of this strategy is that it provides comprehensive market analysis using a single tool. There is no need to combine several different indicators whose signals often contradict each other. The result is a trading system that has proven itself in trending markets thanks to its multi-level signal confirmation and its clear distinction between trending and flat markets.
Cons of the Quotex "Ichimoku Cloud" Strategy
One of the drawbacks is that the strategy can be difficult for beginners. The five lines on the chart and the shaded cloud can look cluttered and confusing for novice traders, and it takes some time to confidently recognise the strategy's signals and correctly interpret all of its elements.
Conclusion
The "Ichimoku Cloud" binary options strategy on the Quotex platform is a powerful and self-contained system, but like any tool it has its strengths and weaknesses. The price's position relative to the cloud formed by the Senkou Span A and Senkou Span B lines helps traders assess the balance of the market and open trades in the direction of the current trend. The crossover of the Tenkan and Kijun lines, known as a "golden cross" or "death cross", indicates the right moment to enter the market in the chosen direction.
Before using this strategy in live trading, we recommend testing it on a demo account with the binary options broker Quotex. Happy trading!
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