How to catch Momentum using Ichimoku cloud Setup?

Is it possible to capture good moves in stocks using Ichimoku cloud setup? See how this setup worked wonderfully on the below chart.

Ichimoku cloud - The Ichimoku Cloud is a technical tool that indicate the support and resistance, identifies trend direction, gauges momentum and provides trading signals.

What is an Ichimoku cloud setup?

This setup aims to catch the trend early as an eagle waits for the exact moment to catch the prey most of the time. This setup requires price to witness a dip toward the cloud, reverse upward, and then deliver a decisive breakout above its previous swing high."

MMTC 15 Minutes Chart with Ichimoku Cloud setup

As expected, the stock after taking a dip towards the cloud found support of it and reversed on the upside. Once, prices breached above its previous swing high i.e. near 67 levels prices saw a massive gain of more than 18% in just a short span of 2 trading sessions despite major indices underperforming which is a sign of strength. Ichimoku cloud setup works like magic when combined with simple Price action, if caught at the right time it can lead to amazing results as seen above!

In a nutshell, one can ride the trend best when entered at the right time of the breakout. Traders can capture a trending move very efficiently by just using the above setup.

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