Ichimoku Kinko Hyo strategy's explanation

The Ichimoku Kinko Hyo, also known as the Ichimoku Cloud, is a good standalone indicator. It plots on the chart on top of the price action and consists of five lines. Two of them form the Senkou Span, known as the cloud. The other line you need is the blue Kijun Sen line. This strategy is suitable for every trading asset as its rules are trend-related.

Strategy rules:

You’ll open a trade whenever the price goes out of the cloud, which is an indication that a potential trend is probably interrupting the ordinary flat price activity. You’ll then hold the trade until the price interrupts the blue Kijun Sen line or until the end of the trading day.

Stop-loss rules:

Use a stop-loss order for this trading strategy. Since you expect a trend, the Kijun Sen should follow the price. The closing moment moves as well, so use a trailing stop-loss order which follows the price activity. Place it on relative distance so that it is always at the other side of the Kijun Sen, then close a trade if the price breaks the Kijun Sen. Don’t wait for interaction with the stop-loss. The idea of the stop is to be as close as possible to the Kijun Sen and to protect you from sharp moves against your trade.

This is the five-minute chart of the EUR/USD for December 20, 2018. The image shows a bullish price activity. The chart starts with the price inside the Senkou Span (the cloud). The green circle shows the moment when the price breaks the cloud in a bullish direction. A few moments later, there is an increasing trading volume on the volume indicator, which indicates a bullish trend forming on the chart, which gives us a good reason to buy the EUR/USD.
We can put a trailing stop-loss order at approximately 18 pips’ distance below the price action. This way, the stop-loss will crawl up and will increase with the price action. The price increases afterward.
The trade continues for nearly three hours. Our closing signal comes when the price breaks the blue Kijun Sen line, indicating that the bearish trend might be over. The results from this potential trade equal to 66 pips, or 0.58%. The risk we took with our stop-loss order is equal to 0.16%. Our win-loss ratio is 3.63:1. In other words, we profit 3.63 with risking 1.