The Tenkan-Kijun Cross Explained

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Kijun-sen line indicator

  • Post # 2
  • Quote
  • Feb 11, 2020 3:43am Feb 11, 2020 3:43am

Please , can you test this one ??

  • Post # 3
  • Quote
  • Edited Apr 25, 2020 9:48am Apr 24, 2020 4:58pm | Edited Apr 25, 2020 9:48am
  1. D raws Kijun-sen.
  2. D efault s: p eriod = 26. C hange as required.
  3. More free indicators � Here � see lower right panel

Advisable to test the below EA s on demo before live – see below function conditions
Kijun-sen EA: Close O n T ouch Kijun- S en EA – v1.mql4

  1. Defaults: period = 26, crossed pips = 0, slippage = 3. Change as required.
  2. W ill close all open position on a chart when pri ce touches Kijun-sen.
  3. All open positions on corresponding charts (i.e same symbol or instrument) will also be closed.
  4. O p en positions on n on-corresponding charts will not be closed.
  5. No other options at present.
  6. A dd code for further options as required. Please rename EA and upload for other users.
  7. More free indicators – Here-Mql4 Codebase/file45

MA EA: Close O n T ouch MA EA – v1.mql4

  1. Defaults: period = 34, ma type = EMA, crossed pips = 0, slippage = 3. Change as required.
  2. W ill close all open position on a chart when pri ce touches MA .
  3. As above – 3, 4, 5 , 6 & 7
  • Post # 4
  • Quote
  • Edited Apr 30, 2020 3:28am Apr 29, 2020 3:24pm | Edited Apr 30, 2020 3:28am
  1. Kijun-sen + Top & Bot Envelopes
  2. Defaults: period = 26, envelope = 400, show top envelope = true, show bot envelope = true. Change as required.
  3. An alternative method of hiding an element of an indicator is to change it’s color to – None

GBPAUD, period = 26, envelope = 4,000, time frame – daily

  • Post # 5
  • Quote
  • Edited Jun 12, 2020 5:04am Jun 11, 2020 1:10pm | Edited Jun 12, 2020 5:04am
  1. The Kijun Sen traditional default period of 26 is optimized for the daily timeframe. Lower timeframes require appropriate parameter adjustments.
  2. For lower timeframes the Kijun Sen period can to be increased to 34, 52, 78, 100 etc., and Envelope deviation lowered.
  3. HR1 & HR2 periods fair better than lower in long run. See GBPUSD, GBPAUD, EURAUD – view HR2 chart history for assessment – test Kijun Sen 50, 100 etc., or use multiple Kijun Sen.

Inputs and Parameters:

  1. Kijun_Sen_Period – 26;
  2. Envelope_Deviation – 4000;
  3. Envelope_Upper_Label_Color – LimeGreen;
  4. Kijun_Sen_Label_Color – DodgerBlue;
  5. Envelope_Lower_Label_Color – Red;
  6. Text_Size – 12;
  7. Make_Text_Bold – true;
  8. Move_Text_Right – 25;
  9. Show_Top_Envelope_Band – true;
  10. Show_Kijun_Sen – true;
  11. Show_Bottom_Envelope_Band – true;
  12. Show_Labels – true;
  • Post # 6
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  • Jul 16, 2020 7:44am Jul 16, 2020 7:44am

hey bro. this is great work.

is it possible if you have the time for your next revision to have the slope of the kijun sen coloured?
similar concept to the xpma indicator.

if kijun is increasing – option to choose a colour for it
if kijun is decreasing – option to choose a colour for it

thanks in advance.

  • Post # 7
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  • Jul 18, 2020 11:14am Jul 18, 2020 11:14am
  • Post # 8
  • Quote
  • Edited at 3:45pm Jul 24, 2020 8:38am | Edited at 3:45pm

Tenkan and Kijun Color Fill

This indicator is awaiting publication on MQL4 Code Base under author file45. No further description is possible.

A full description is available – HERE

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Image: Color Fill – 1 of 1, 2, 3 or 4. // Tick Chart on foreground – Chart Properties (F8).

  • Post # 9
  • Quote
  • Edited at 12:28pm Jul 24, 2020 8:44am | Edited at 12:28pm

MA1 + MA2 Color Fill

This indicator is awaiting publication on MQL4 Code Base under author file45. No further description is possible.

Image: Color Fill – 1 of 1, 2, 3 or 4. // Tick Chart on foreground – Chart Properties (F8).

  • Post # 10
  • Quote
  • Edited at 2:20pm Jul 26, 2020 12:54pm | Edited at 2:20pm

Color Candles cross Kijun Sen – This indicator is awaiting publication on MQL4 Code Base under author file45. No further description is possible.
Color Candles cross MA – This indicator is awaiting publication on MQL4 Code Base under author file45. No further description is possible.

To use these Indicators the required instructions must be followed. If the Instructions are not followed the Indicators will not work.

The instruction for Color Candles cross Kijun Sen MT4 is the same as for MT5 – See here for instructions

The instruction for Color Candles cross MA MT4 is the same as for MT5 – See here for instructions

4 Predefined Kijun Sen Indicators of periods 21, 34, 50 and 100 are included in a zip file below.

Gold – M15 – Kijun Sen period = 50 (26-Jul-2020)
First solid vertical line – London Open 08:00 (03:00 ET). Second solid vertical line – London 14:00 (09:00 ET). Session Open V- Line

  • Post # 11
  • Quote
  • Edited at 12:32pm Aug 7, 2020 1:25am | Edited at 12:32pm

1. Indicator : Change Symbol – Light
2. Indicator : Change Symbol – Full

These Indicators enable a User to change the symbol on a chart by clicking the associated Symbol Button.

Note: If chart symbols are other than the standard EURUSD such as EURUSDSB or EURUSD_uk the User needs to see “Notes on Suffix”.

First, see if you are in agreement with a number of considerations.

Consideration 1.
The use of these Indicators is dependent on files mt4gui.dll and mt4.mgh. Both are FREEWARE but require a FREE license key for every computer running the dll file. The license key is obtained via email from FX1.net – they do not spam ! When the Indicator is first loaded a pop up will request a name (does not have to be actual – use a handle) and email. Once submitted a License Key will be immediately send which is then entered in said pop up. There is no limitations to the number of free licenses. FX1.net Location

These files are include in MT4GUI.zip below.

Consideration 2
This indicator does not appear on the chart when the MT4 terminal is started. Switching timeframes is the Harry Potter stuff that works the magic. A bit of a bother but this is due to a MT4 Terminal indicator limitation not being able to register the WindowHandle when first loading. See – FAQ → Is MT4GUI Compatible with Indicators?

Consideration 3:
When the the MT4 Terminal is closed a pop up will appear: MetaTrader has stopped working → Close the program (see image 6). Click – Close the program.

Consideration 4
I have run these indicators on windows 7 – 64 and 32, Dual Monitor systems, but not XP. I have not experienced crashes.

Consideration 5.
If you are still here, here is some necessary info.

  1. The Radio Buttons panel is anchored to the top left corner but can be moved as required. See Left_Right and Up_Down parameters.
  2. The Radio Panel color can be changed.
  3. Any Symbol can be changed from the Inputs tab. The Full version also has SPARE Radio Buttons for User to input additional symbols. See image 5.
  4. Notes on Suffix: The User should experience no problems with standard symbols notation such as EURUSD. Some Broker’s use variants like EURUSDSB. See “Suffix” in Inputs tab (image 3). If, as example, “SB” (without quotation marks) is entered all the symbols will have SB added. i.e EURUSDSB, GBPUSDSB etc. See image 4. Note that the “Suffix” must be case sensitive. I tested this successfully on a Broker that uses additional capital letters. This did not work on a MT4 Terminal that uses EURUSD_uk. I added “_uk” in the Suffix but could not get it to work. Futures symbol such as LCrudeSept13 will also not work. At the moment I do not have time to look into this. Coders welcome to contribute to solutions. Please post for other users.
  5. GOLD may have to be changed to XAUUSD or other variant.
  6. Change Symbol – Light has an option to hide some Symbols – see image 2.

Important : Make sure Allow DDL imports is checked: Tools → Options → Expert Advisors → (tick) Allow DLL imports – see image 7 below.

Location of Files
Change Symbol Light or Full : place in experts/indicator folder.
mt4gui.dll : place in experts/library folder.
mt4gui.mgh : place in experts/include folder.

  • Post # 12
  • Quote
  • Edited Aug 14, 2020 5:05am Aug 13, 2020 6:31pm | Edited Aug 14, 2020 5:05am

Notice: Re above Change Symbol Indicators – mt4gui.dll file

1. FX1.net have updated the mt4gui.dll file so the mt4gui.dll in the above post is out of date and will no longer work.

The automatic update did not work for me and the manual update did not replace the mt4gui.dll file but made a copy mt4gui.dll(1). It is perhaps quicker to delete all old mt4gui.dll files from all MT4 Terminals and copy a fresh updated file. I have attached the latest update but this will at some time be updated and need replacing. Future updates will have to be downloaded from FX1.net.

2. Note: If a Template is made containing Change Symbol Light and another containing Change Symbol Full then it is not possible to change immediately between the two without the MT4 Terminal closing. To change from one to the other without MT4 Terminal closing first change to a Template containing neither Indicators and then to the Template containing the Indicator of choice.

  • Post # 13
  • Quote
  • Aug 26, 2020 11:28am Aug 26, 2020 11:28am
  • Post # 14
  • Quote
  • Edited at 7:22pm Sep 6, 2020 12:29pm | Edited at 7:22pm
  • Post # 15
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  • Edited at 9:45am Sep 20, 2020 12:52am | Edited at 9:45am

Indicator: Alert Rouge Orders

The Stop and Limit Orders features of MT4 are easily opened accidentely when a Trader is working on the chart. On shorter timeframes the opened order line can be off the visible area of the chart and the Trader unaware that an order has been opened.

The present indicator has two states.

A label displays the indicator state.

Text is bold but can be turned off – see Parameters (set Font_Bold: false).

1. No Orders will allow Buy, Sell, Stop and Take Profit but will constantly alert on every tick (price change) if any of the following pending orders are open:

The Alert will constantly repeat until either

1. The order is deleted.
2. The indicator Alert is switched to Allow Orders (Orders_Alert: false).

Orders can be deleted manually from the Terminal (Ctrl+T) or by draggng the delete_pending script (experts/scripts) onto the chart.

Comment: It is not possible to code deletion of pending orders as an indicator in MT4. Manual, script or EA deletion are the available options.

2. Allow Orders will not alert to any orders.

Orders_Alert: true;
No_Orders_text: NO Orders;
Allow_Orders_text: Allow Orders;
No_Orders_Color: Red;
Allow_Orders_Color: LimeGreen;
Font_Size: 11;
Font_Bold: true;
Font_Corner: 1;
Left_Right: 25;
Up_Down: 125;

  • Post # 16
  • Quote
  • Edited at 12:42pm Sep 23, 2020 3:05am | Edited at 12:42pm

A place to organize my stuff. This unused thread as good as any. Surewin888 these may be considered exercises in right speech.

The below indicators are improvements of indicators I have published on MQL4 Code Base as author File45 or elsewhere as Phylo or something else.

The image illustrates trades taken to check the below cases against the MT4 Terminal values.:

  1. A Buy profit
  2. A buy loss
  3. A Sell profit
  4. A Sell loss
  1. Position anywhere on chart.
  2. SER = Broker Server Time. Broker Time cannot be changed.
  3. The remaining 5 Time Zones can be changed.
  4. The SER label and remaining 5 labels can be changed.
  5. Time Zones not required can be hidden.
  6. In the above demo image LND (London) is offset – 1, NYC (New York City) offset -6 etc,.
  7. If Time Zones are hidden the Up_Down parameter may require a negative value to align closer to chart bottom margin.
  8. As default, two Time Zones are hidden. If these Time Zones are unhidden then the Up_Down parameter must be changed from – 20 to a positive number to lift the indicator off the chart lower margin.
  9. For bold fonts set Fonts_Bold: true.

2. ACC+BAL+MARG v2

  1. Auto detects account currency.
  2. Can be aligned with any corner. Locked at horizontal.
  3. Individual Account Headings not required can be hidden.
  4. HIDE ALL function. Set Show_All: False.
  5. Margin percentage (0.xxx%) is to three decimal places and against Free Margin. (Margin/Free Margin)*100.
  6. For bold fonts set Fonts_Bold: true.

3. Open Positions v2

  1. Locked to the top right corner of the secondary window.
  2. The indicator should open as a secondary window below the main window.
  3. The indicator can also be dragged onto any secondary window such as Stocastics or MACD etc,
  4. If the indicator does not open as a secondary window (unlikely) and is preferred to occupy its own secondary window then install Blank.mq4 and drag the indicator onto Blank.mq4.
  5. The indicator is only visible when one or more positions are open.
  6. p = points. MT4 calculates in points not pips. Compare chart p numbers in included demo image against numbers* under Profit Heading in (Account) Terminal. **
  7. Use Column_Spacer to increase or decrease distance between columns. Too large an increment may result in the indicator moving off the display area. For finer control use decimal increments.
  8. For bold fonts set Fonts_Bold: true.

* If you find your MT4 Terminal numbers differ from the installed Indicator proceed as follows: Open Terminal(Ctrl+T). Right-click heading Profit. Shift cursor to → Profit menu. Select → as Points.
** Put focus on the chart and bring up the cross hairs (Ctrl+F) or click mouse scroll wheel. Hold the left mouse button down and drag a line at about 45 degree angle. The first number on left is Time displacement, the second number is Price displacement in Points, the third number is Price.

Calculate the value of a move: The point value can be quickly calculated. As per above Image, AUDUSD (117.12/(10.43 x 18)) = (117.12/187.74) = 0.62384. In this case �0.62, but for greater accuracy retain 5 decimal placing. So a 180 point move on 10.43 lots should be 1,171.20. Proof. 10.43 x 180 x 0.62384 = 1,171.20.

  1. Indicator update can lag the terminal in fast market, on slow PCs or slow connections. A tick-generator keeps all MT4 platforms up-dating current. Free – Here. Says for EA but keeps indicators up-dating current as well.

5. Install Location: experts/indicators

The Tenkan-Kijun Cross Explained

The optimum combination of indicators is a basis of any profitable strategy for which searches you can spend years. At the same time, the Ichimoku indicator is included in a base pack of all trade platforms. It representing ready to use trade system which can easily be adjusted to any market, if necessary.

The Ichimoku technique uses the unique indicator of the same name created in the country of the first market theory – in Japan in the first half of the 20th century by analyst Hosoda Goichi (a pseudonym − Sanjin Ichimoku). Sometimes it’s possible to meet the complete name − Ichimoku Kinko Hyo. The indicator was created and tested on data on dynamics of the Japanese stock index Nikkei.

However, this means of the technical analysis was provided to the public only in the 60th years of last century as his creator very carefully checked and enhanced the analytical tool. It includes the most balanced mechanism of the analysis of price movement that is why this indicator is called still the indicator of market balance.

All options of Ichimoku strategy are effective in any conditions and practically on all trade assets. They combine benefits of the trend guide with moving averages, and its lines as it isn’t surprising, practically match wave 50% kickbacks according to Elliott’s basic theory.

Mathematics and indicator’s settings

The Ichimoku indicator is created by Hosoda for the quickly graphical analysis of a market situation. Visually the Ichimoku Kinko Hyo indicator is five lines which are constructed over a price chart, and also the shaded space between two of them. Three time frames are used for calculations:

  • A short time frame – 9 periods;
  • An average time frame – 26 periods;
  • A long time frame – 52 periods.

Let you be not confused by affected Japanese names – calculations of lines are rather simple.

Tenkan-sen, or Tenkan − the line of a «turn», basic color – red. The line of a short trend, regular average (a half of the sum of High + Low) for the first interval of averaging, by default – 9. The trend guide, the more a tilt angle, the stronger direction. As the regular moving average, performs support/resistance function.

Kijun–sen, or Kijun − the line of «standard», basic color − blue. The average line is on the second interval, by default – 26. A more reliable indicator of a trend. If the price is higher than the line – further growth is supposed, below – a fall. A release from this line – rather strong signal to enter.

SenkouSpanA, or Senkou A – the upper (first) «future» line, basic color – different shades of red. Its value – in the middle of Tenkan/Kijun range, but displaced forward on the size of the 2nd time frame.

SenkouSpanB, or Senkou B – the lower (second) «advancing» line, basic color – various shades of green. The average line for the biggest interval shifted forward on the size of the 2nd time frame. By default – 52.

The space between SenkouA and SenkouB is shaded in different colors, depending on a relative positioning of lines, forming graphical «Cloud» (Kumo). When the price inside of Cloud – the market is flat, and borders are as strong lines of resistance. If the price is higher than a cloud − the bull market, below – bear.

ChinkouSpan – the «late» line showing the closing price of a candle, which is remote from the current one on the size of the second time frame.

Substantially all lines of the Indicator are an average price value for a certain period of time, that is − an analog of moving averages, so a trend is directed in the way where lines are moving to, and horizontal lines will mean a flat. Ichimoku levels are dynamic, the emergence of new price peaks and hollows involves instant reorganization of all graphical picture.

There is a set of options of use of Ichimoku lines within the creation of trade system. The specified parameters are classical, experiments with time frames and the periods of the indicator allow to find optimum configurations which will correspond to the individual style of trade for each trader.

Ichimoku strategy application in real trade

Parameters for the system have basic setup on the stock market which market cycle is equal 1 year. The idea of the indicator’s author (it still call Hosoda’s logic) was that the first parameter – the line Tenkan shows an average price value for 9 days (one and a half business weeks). The second parameter Kijun − 26, this number of the working days in a month as in Japan there were 6 working days a week during that period. The third parameter – the size 52, this number of days in two working months, determines Senkou Span B value.

Considering the above, how rational to use classical parameters now? If to consider that nowaday trade week constitutes 5 days, and, respectively, there are less trading days in a month. Then it is logical for trade on schedules of Daily (and less) try to correct indicator parameters under modern trade week in 5 days. We receive Tenkan for D − 8 (or 7), or one and a half business weeks, 22 – number of the working days in a month (on average), and 42 – the period in two working months.

Following Hosoda’s logic, it is possible to calculate parameters and for other time frames. It turns out that basic settings are adjusted for work on week candles, but also intra-day, in case of small correction towards the equivalent reduction of parameters, the system gives excellent signals and gets off only at the moments of the speculative market, for instance, after the news.

Important: the last argument in case of work on I c himok u strategy is always the ChinkouSpan line: if this line is higher than the price in case of any BUY signal, then this is an additional confirmation of a trading signal. Any signal in SELL will be more reliable if the ChinkouSpan line is lower than the priceat the time of an enter.

The basic purpose of Ichimoku indicator lines is rendering support/resistance to price movement. A number of lines are «stronger» as reflecting a mid-term trend on the chart – it is Kijun and Chinkou B. Lines of a short-term trend Tenkan and Chinkou A are less steady and are more easily stitched by the price. Any Ichimoku strategy includes several tactics with an individual set of trading signals. The interval – from H1 above, D1 is the best.

Tactics 1. Tenkan-sen/Kijun-sen crossing

Bull signal: Tenkan passes Kijun from below up, forming a «gold cross» figure.

Bear signal: Tenkan crosses Kijun line from top to down, forming a «dead cross».

Signals arise in points of intersection of the specified lines, but they need to be analyzed from the point of view of an overall picture of constructions. For assessment of force of a signal the following recommendations are used:

A Strong signal Tenkan/Kijun: for purchase – crossing shall be above Cloud border, for sale − the point of intersection is under the lower bound.

The neutral signal Tenkan/Kijun for purchase and for sale: crossing is in the Cloud.

A weak signal Tenkan/Kijun: for purchase – crossing is under the lower bound of Kumo, for sale – over the upper bound.

Entrance: the order is opened in the direction of a point of crossing after closing of the previous candle. Stop-loss: behind opposite Kumo bounder or according to rules of management of the capital. Exit: at the return crossing of lines or on a take-profit.

Tactics 2. Crossing of Kijun-sen by the price

One of the most reliable signals of Ichimoku trade strategy. The technique works well on all the time frames, but on intra – day is less reliable.

The bull signal Kijun: breakthrough by the price from below up, closing − behind the line.

The bear signal Kijun: breakthrough by the price from top to down with fixing behind the line.

Strong signals: bull − crossing is above Kumo’s bounder, bear – behind the lower bound of the Cloud. Neutral signals for purchase/sale: crossing between Cloud bounders.

Weak signals: bull crossing – below the lower bound, bear – above the upper bound. Check through Chinkou Span – is recommended.

Entrance: the order is opened after a crossing point on a trend, but only after fixing of the previous candle. We track an arrangement of strong levels of support/resistance.

Stop-loss: 5-10 points from the Kijun line on the opposite side (over or under the line). Further, you may move a stop through creation Kijun line, keeping a gap in 10 points.

Exit: on the return crossing at the price of the Kijun line or by rules of a money management.

Tactics 3. SenkouA/SenkouB crossing

According to Ichimoku strategy − it is a signal of a probable turn of a trend or kickback towards the SenkouA line. If SenkouA is crossed by SenkouB from top to down and it is confirmed by a change of color of the Cloud − purchase, in the opposite option – sale. Reliability of this tactics decreases because the SenkouA and Senk lines are constructed expecting «future movement», and the current price is removed for 26 periods from the crossing of lines.

We can discuss the uniqueness of Ichimoku indicator infinitely − this is the universal assistant capable of carrying out the variety of tasks. The main functions are: identification of market trends, determination of key lines of support and resistance, the creation of signals for the opening of positions. Ichimoku indicator is best for day and week schedules.

Practical example: KumoBreakout indicator strategy

The simplified system on the Ichimoku indicator combining benefits of the well-known Japanese technique with the standard oscillator and the smoothing effect of Heiken Ashi candles. Incorporates all necessary tools: trend, pulse and the forecast of future movement, and at the same time doesn’t overload a price chart with excessive information and graphical creations. The technique is profitable on any tool, including − on an unstable trend.

The system doesn’t use price lines with difficult names and works only with Kumo graphical creations of (Cloud) among all Ichimoku tools. A technique essence – use of unique properties of KumoBreakout effect (or breakthrough of Cloud bounds), and Ichimoku missing properties are compensated by additional tools.

Strategy with «cut off» Ichimoku complete with the oscillator for the first time was applied by the famous Swedish trader and the analyst Larsson to trade in binary options − profitability of its signals reached 80%. Subsequently, the accuracy of the fulfillment of a trend inherent in strategy and a capability to forecasting began to be used successfully on Forex.

Adjusting of indicators and principles of KumoBreakout strategy

The template containing three unique indicators along with standard AwesomeOscillator which is installed by a standard method in the basic MetaTrader4 (5) catalog is used.

The Kumo cloud builds the ZB-CloudLines indicator – it is recommended to keep the offered standard parameters and color scale.

The ZB-CloudCandels indicator is responsible for the correct display of price candles according to the current trend and logic of the system.

The standard AwesomeOscillator indicator along with the ZB-CloudMatrix indicator of the direction of a trend is placed in the lower window.

It should be noted the KumoBreakout indicator system has a harmonious red-green color scale by default – nothing extra. The main Cloud which configuration and an arrangement determines availability and the direction of the main trend is constructed on a price chart. HeikenAshi candles smooth the schedule and highlight with color the main tendency.

The key concept of this indicator strategy – «Kumo’s breakthrough», that is a break of the price for the upper or lower bound of the Cloud. Breakthrough of the upper bound means a tendency to growth (purchase), of the lower bound – to fall (sale). The dot indicator which confirms a signal on an entrance by the corresponding color works in an additional window: green – a bull trend, red – bear and gray – the periods of a flat. Change of color warns about a change of a trend.

Important: in case of creation the «steps» of the Cloud rather precisely show turning price levels which in general match a basic Fibonacci’s grid.

Application of KumoBreakout in trade practice

It is possible to apply strategy on any tool, but really steady results are yielded by middle volatile currency pairs: EUR/USD, GBP/USD, AUD/USD, USD/CAD, USD/CHF. Futures yield results only on the periods from D1 above. Cross-pairs for this technique isn’t recommended because of big dependence on fundamental factors.

Recommended time frame: for the search of a point of entry − M15, for holding of the transaction – from H1 above.

Trade time: European and American sessions. We don’t trade before and after the news.–It can be not enough volatility for short-term transactions in a night session, the system tracks a general trend reliably.

So, the KumoBreakout indicator strategy gives a signal for position opening on purchase (Buy) if:

  • The price punches the upper Kumo bound from below up down, the candle is closed above the bound and changes color for green.
  • The dot ZB-CloudMatrix indicator in the lower window of the schedule shall be green.
  • The oscillator gives a standard signal on a bull trend – crossing the zero line or change of the histogram direction to movement up.

Entrance – at the opening of the following candle. While the price is above the Kumo upper bound– the bull trend remains, and the farther from bound – the stronger.

Conditions for position opening for sale (Sell):

  • The price punches the Kumo lower bound from top to down, the candle is closed below the bound and changes color for red.
  • The dot ZB-CloudMatrix indicator shall be red.
  • The oscillator gives a standard signal on a bear trend – crossing the zero line or change of histogram movement of the oscillator to movement down.

Entrance – at the beginning of the following candle. According to the logic of KumoBreakout strategy: until the price is under the Kumo lower bound – bears prevail, and the more a distance to the line – the trend is stronger. We put StopLoss/TakeProfit proceeding from the principles of admissible risk or at the strong price levels.

Flat sites of the market are visible in the direction of the Cloud: during the uncertainty periods, it is located horizontally. If candles keep the last color at the same time, then the trend will proceed with a high probability.

Important: the trend weakens in process of approach of the price to Cloud bounds. «Width» and a configuration of the Kumo area depends on the current volatility of the trade tool.

Important: according to this system we don’t open a position while the price is in the Kumo area (a candle and/or the dot ZB-CloudMatrix indicator has gray color).

The emergence of «false» breaks is possible when the dot indicator shows several gray points (on a price chart – several gray candles) then color changes on previous and the general direction of a trend remains.

As well as the Ichimoku standard indicator, ZB-CloudLines gives a certain forecast – builds «future» Cloud proceeding from the standard assessment of a market situation. It approximately determines a possible configuration of movement and price levels of a possible turn. In case of change of a situation, «future» Cloud is reconstructed, moving on new levels.

It is possible even to approximately predict possible time of a turn on the availability of «steps» on already «fulfilled» Cloud and approximate price levels of a turn or consolidation. The point of intersection of bounds of «future» Cloud quite precisely shows moment where the trend can change with a high probability.

Important: taking into account admissible risk level it is possible to use entrances after speculative «quickly» price breakthroughs of bounds of the Cloud for short-term transactions.

The space of the Cloud can be rather big, therefore, trade inside of it and on a release from its bounds is possible too, but it is the weakest tactics in a set.

If the overall picture is favorable, then we work only for the breakthrough: a purchase signal − closing of a candle over the upper bound, a sale signal – closing under the lower bound.

If the purchase is opened inside the Cloud, then stop − behind its lower bound, if sale – behind the upper bound. Take-profit − opposite bound of the Cloud (from 20% to 120% of Cloud space).

It is necessary to consider «Kumo’s mood», let’s imagine the cloud is painted in «bear» color, then this is an additional confirmation of a signal down. If the color of the Cloud contradicts your intentions – better to wait.

And as the conclusion …

The long-term statistics of trading shows that trade strategy based on the Ichimoku indicator practically don’t yield negative results. Traditionally all techniques give profit in the quiet, not speculative market and medium-term transactions. Standard Ichimoku strategy doesn’t have additional indicators because its mechanism was developed for work with the stock exchange indexes, but to fans of short-term trade is strongly recommended to add indicators of amounts (for example, awesome). Experience shows that use of the additional oscillator gives a set of reliable signals practically on any period. It means – it is possible not only scalping effectively but also to hold open positions for several hours, as much as possible fulfilling possibilities of the current trend.

The external complexity of Ichimoku graphical creations usually frightens off beginners, but that persistent who will spend time for its development, it gives stable profit on any asset. Studying of this strategy requires a lot of time, but the result is worth it: in case of careful setup efficiency of the generated signals reaches 80%. Besides, understanding of the logic of the Ichimoku indicator – it is stylishly, modern and professional for any trader.

The Tenkan-Kijun Cross Explained

Ichimoku Indicators for Metatrader 4

Example: Ichimoku shown on a ProRealTime Chart

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Japanese candlesticks are extremely well known in the world of technical analysis. Did you know that there’s another popular trading innovation from the same country? This is the Ichimoku Kinko Hyo indicator.

This trend-following tool allows you to identify price action at a glance, even from large amounts of data, via multiple graphical elements. This article will explain the basics of the Ichimoku indicator and how to use it in MetaTrader 4 to augment trading Forex, as well as a look at a wide range of possible strategies you can use it with.

What is the Ichimoku Indicator?

The Ichimoku Kinko Hyo indicator was developed in the 1930s by Goichi Hosoda, a Japanese journalist. He spent 30 years perfecting his technique before making it public in the sixties.

The Ichimoku Cloud Indicator, also known as Ichimoku Kinko Hyo, is a versatile manual trading indicator that defines support levels and resistances, identifies the direction of the trend, measures momentum and provides trading signals in forex.

It is a trading system that works with all time frames, and with any instrument. This indicator gives traders a good understanding of the different markets and helps them discover a multitude of trading opportunities with a high probability, so that in a few seconds we will be able to determine if a trade with the current trend is positive or if you should wait for a better market setting in that particular pair.

Ichimoku can be used to show both uptrends or downtrends. This indicator should not be used when there is no clear trend.

Components of the Ichimoku Kinko Hyo Indicator

The Ichimoku Kinko Hyo indicator consists of a number of different graphical elements plotted on a single chart. The different elements are intended to help us identify where the support and resistance lies. They also allow us to work out if the market is trending, or if it’s under consolidation. Here are the components that make up the Ichimoku indicator:

The Kumo, or Cloud

The cloud consists of the combination of the Senkou Span A + Senkou Span B lines.

The main function of the cloud is to identify trends.

  • Signals:
    • When the SSB is higher than the SSA, the trend is bearish
    • When the SSA is higher than the SSB, the trend is bullish
    • If the price oscillates in the cloud, we are in a lateral range or indecision zone
    • If the cloud is thin, there is little volatility in the market
    • If the cloud is wide, there is a lot of volatility in the market

The Tenkan, or Fast Line

The function of Tenkan is to inform about price volatility (being the closest median to the price).

Interpretation of variations in the market Tenkan:

  • If Tenkan goes up, it means that the highs and lows of the last 9 candles are rising.
  • If Tenkan goes down, it means that the highs and lows of the last 9 candles go down.
  • If the market stops rising or falling, the Tenkan line remains flat.
  • This is the most reactive line of the Ichimoku Kinko Hyo system. This average does not shift to the right or to the left, unlike the Chikou average.

The Kijun Sen, or Slow Line

Its function is to inform us about the long-term volatility of the price and directly reflects the price.

  • Interpretation:
    • If the Kijun goes up, it means that the highs and lows of the last 26 candles are increasing.
    • If the Kijun goes down, it means that the highs and lows of the last 26 candles are decreasing.
    • If the market stops rising or falling, the Kijun line stays flat.

The Chikou, or Delay Line

Chikou’s function is to represent the price action for the last 26 periods. That is, it is the mirror image of the price, but shifted forwards 26 periods.

Thanks to this, we can compare the current price situation with that of 26 periods ago. Analysis of the Chikou relative to other levels of Ichimoku can confirm a new trend and its potential.

This is the only line of Ichimoku Kinko Hyo Forex that is not based on the Donchian Channel.

Although all of the constructions on one single chart may seem a little daunting, the ultimate aim of the indicator is simplicity. You also don’t have to worry about specific calculations, as MetaTrader 4 will perform them for you. It’s more important to understand the basics of what each line represents. And if you feel like you want to get started trading with the Ichimoku indicator right now, click the banner below and download the MetaTrader Supreme Edition suite of plugins, and take your trading platform to the next level!

Advantages of the Ichimoku system

  1. It can be used in almost all trading markets, including the stock, futures and options markets, forex, indices, and precious metals (gold and silver), etc.
  2. Ichimoku allows you to quickly choose the configurations or trade preferences at a glance, including the immediate understanding of the direction of the price movement, the feeling, the momentum, and the strength of the trend.
  3. Ichimoku shows a very clear picture, as it displays a lot of data, which provides greater reliability in understanding the price action. This technique combines three indicators in a graph, which allows the trader to make a more informed decision.
  4. Ichimoku is a trend identification chart system. That means it works best in markets showing clear trends. It helps to find the direction of the price movement, so that the trader will have a good understanding of the trends in general.
  5. With Ichimoku it is possible to capture false price breaks, as this system helps you to capture the direction of the trend in the time frame of the trade.

Using Ichimoku Kinko Hyo Indicator in MT4

It’s very easy to find and launch the Ichimoku Kinko Hyo indicator in MT4. You don’t need to download the Ichimoku indicator separately, as it comes bundled with the core tools of the platform. All you need to do is look at the list of Indicators within the ‘Navigator’ tab. The image below shows that there are four subfolders of indicators with the MT4 Ichimoku indicator, contained within the ‘Trend’ subfolder:

Source: MetaTrader 4 – USD/JPY 1 Hour – Setting the colors for the Ichimoku Kinko Hyo indicator

Clicking on ‘Ichimoku Kinko Hyo’ opens a dialogue window, which lists the various graphical elements for the indicator. The default colours are shown in the image above. You can also easily configure other visual aspects via the dropdowns (e.g. line thickness, dotting, etc.) If you wish to set the periods, click on the ‘Parameters’ tab. The default values are as follows:

  • Tenkan-sen: 9
  • Kijun-sen: 26
  • Senkou span B: 52

The image below shows the Ichimoku indicator with default values added to an hourly USD/JPY chart:

Depicted: MetaTrader 4 – USD/JPY 1 Hour Chart with a Ichimoku indicator applied – Disclaimer: Charts for financial instruments in this article are for illustrative purposes and does not constitute trading advice or a solicitation to buy or sell any financial instrument provided by Admiral Markets (CFDs, ETFs, Shares). Past performance is not necessarily an indication of future performance.

Understanding the Ichimoku Indicator

Tenkan-sen (red line) represents short-term price movement. It is similar to a fast moving average. If the market price is above the Tenkan-sen line, it is a short-term bullish sign. If the price is below Tenkan-sen, it is a short-term bearish sign. One function of Tenkan-sen is to clue us in with regards to the character of the market.

This is because the direction of the Tenkan-sen line can suggest if the market is trending or not. A rising Tenkan-sen suggests an upward trend, and a falling line represents a downward one. As the line is calculated from price extremes, it will tend to flatten out when the market is not trending. Therefore, if Tenkan-sen is moving sideways, it suggests that the market is range-bound.

As Ichimoku is primarily a trend-following system, you should only trade using Ichimoku when you are in a trending market. Kijun-sen (dark orange line) represents medium-term price movement. Think of it as being a little like a slower moving average in comparison to Tenkan-sen. Once again, it can clue us into the trend, but over a longer time-frame.

The interaction of Tenkan-sen to Kijun-sen can give us trading signals, in a similar fashion to a moving average crossover. That is to say, if the fast-moving Tenkan-sen crosses above the slower-moving Kijun-sen, it can be a signal to buy. A crossover of Tenkan-sen below Kijun-sen can be a signal to sell.

Whether we follow these crossover signals is governed by the Chikou span (lime green line) that helps us see the big-picture trend of the market. Remember, the Chikou span plots the current closing price 26 periods back on the chart. If it is above the chart of price, it means that current prices are higher than previous ones.

This is bullish. When the price is above the Chikou span, the current prices are lower than previously, suggesting a bearish tenor. You should use the Chikou span as a trade filter, only placing trades that agree with the overall trend. For example, if the Tenkan-sen crosses below the Kijun-sen, you would only sell if the Chikou span indicated a bearish overall trend.

The kumo, or cloud, is the space bounded between the Senkou span A and the Senkou span B. If the price is above the cloud, it is a bullish sign. The top of the cloud acts as a first line of support, and the bottom of the cloud, as a second line. If the price is below the cloud, the reverse is true.

It is a bearish sign, and the bottom of the cloud acts as the first level of resistance. Logically, the top of the cloud is the second level of resistance. The wider the cloud, the stronger the expected support, or resistance. A thin cloud represents only weak support/resistance.

To jump in and start trying out the Ichimoku indicator in MetaTrader 4, completely risk free, click the banner below to open a demo account with Admiral Markets, at no cost!

Ichimoku Chart in Real Conditions

Here are the 8 questions you should ask yourself when using the ichimoku indicator on a chart:

  • Is the current price higher than that of the Ichimoku Kumo cloud or the neutral zone?
  • If the market is trending, ask yourself where the price is compared to the Ichimoku cloud. This helps to know if the trend is bullish or bearish. If the price is in the Kumo cloud, it is a neutral zone. In this case, we must wait for a break.
  • So, is there a Tenkan / Kijun crossing? If so, is it a strong or weak signal, as we defined earlier in this article?
  • Is the cloud or Kumo bullish or bearish?
  • Is the price higher or lower than that of Chikou?
  • Where are the supports and resistances of Chikou?
  • What is the range of volatility?
  • Where is the price compared to the Tenkan and Kijun lines?

This combination of factors, complemented by an analysis of multiple time units, provides excellent results to find a general trend and main levels of support and resistance. So with these facts in mind, let’s start discussing some of the most significant strategies you can use with Ichimoku indicator:

The Complete Guide to Ichimoku

Before covering some Ichimoku strategies let’s explore an expert’s view and take advantage of his hands-on experience in the subject. The below free webinar is hosted by expert trader – Paul Wallace.

Ichimoku Forex Trading Strategies

Using Ichimoku for Trend Confirmation with the Cloud (Kumo)

Source: EURUSD, Chart H1 , MT5 Admiral Markets. Data range: from September 19, 2020 to October 11, 2020. Held on October 14, 2020. Keep in mind that past performance is not a reliable indicator of future results.

  • When the price enters the cloud (kumo) from the bottom.
  • While the price is or remains above the cloud, we understand that the currency pair is in an uptrend.
  • When the price enters the cloud (kumo) from the top.
  • While the price is below the cloud, we understand that the currency pair is in a downtrend.

Ichimoku Strategy with Kijou and Tenkan

As with other trading systems based on crossing averages, in Ichimoku we will find our buy and sell signals when the Tenkan Sen lines (turn line) cross the Kijun Sen (standard line), and once we have well defined the current trend, we can trade based on this information.

As we have said before, the fast line is calculated on the basis of the last 9 data while the slow line is calculated based on the last 26. Therefore, when the price moves, the fast line moves faster. That slow line.

In the image below, the fast line is red and the slow line is blue. One of the simplest ways to locate the fast line is that when the market is in a lateral trend, the fast line is always closer to the price (the sail) than the slow line.

Source: EURUSD, Chart H1, MT5 Admiral Markets. Data range: from September 19, 2020 to October 11, 2020. Held on October 14, 2020. Keep in mind that past performance is not a reliable indicator of future results.

  • Ichimoku will generate a buy signal when the fast line crosses up to the slow line
  • Ichimoku will generate a sell signal when the fast line crosses down below the slow line

The strength of these signals will vary depending on some characteristics, so it will differentiate different types of buy signals. But in the case of sales signals, there isn’t much variation.

  • If the upward crossing of the fast line over the standard line occurs above the cloud and in addition the Chikou Span delay line is also above the cloud or Kumo, we will consider the buy signal as strong.
  • If the crossing of both lines occurs within the cloud or Kumo, the signal obtained will be considered medium strength.
  • However, if the upward crossing of the Tenkan or fast line with the Kijun or slow line passes below the cloud or kumo, but Chikou Span is above the cloud we will consider this buy signal as weak. This behavior can also be considered as the beginning of an uptrend, and the end of a bearish steak.

Ichimoku strategy with Chikou Span

The Chikou span or delay line can be used to determine the strength of the buy or sell signal.

  • The signal will be on the side of the sellers (bears) if the Chikou Span line is below the current price.
  • The signal will be on the side of the buyers (bulls) if the Chikou Span line is above the current price.

This is a special line, since it confirms any current trends with greater reliability than when comparing the price with the cloud, like in the first strategy.

When functioning as an additional confirmation, some traders only trade when the delay line shows that there is an opportunity. They wait patiently for this strategy to confirm the signals.

As the image below shows, even when the Cloud strategy (price vs. cloud) is not supported, the latter strategy with the delay line is still valid.

  • When the delay line is above the cloud, it is a buy signal
  • When the delay line is below the cloud, it is a sell signal

Start testing your strategies with the Ichimoku indicator today! Click the banner below, and start trading Forex with the powerful Ichimoku cloud, and all these time-tested strategies.

Ichimoku Strategies – Exit and Stop Loss

Ichimoku can also protect your trades, since we can also use it to generate exit signals and to place stop-loss orders.

Ichimoku exit strategy

If we open a long trade using the line crossing strategy (described above), we will get an exit signal from this long position when these 2 lines cross once again, but in the opposite direction.

On the other hand, if we enter the market with a long position using the other two strategies above, we will obtain the exit signal when the price or the delay line crosses to the cloud in the opposite direction in which they crossed when He opened this position.

Ichimoku strategy to place Stop loss

We can use the Ichimoku to place a stop loss and to find several support and resistance points. Since the fast line, the slow line, or cloud can be used as possible support and resistance levels. Once these supports or resistances are broken, the price can have a boost, so you can move on to the next level of support or resistance. Thus, stop-loss orders can be placed:

  • On the other side of the cloud
  • On the other side of the fast line
  • Or, on the other side of the slow line

Also, in long positions, we can place the stop-loss a few pips below the most recent low. In contrast in short positions, the stop-loss can be placed a few pips above the most recent high.

Ichimoku Scalping Strategy

This Ichimoku strategy is based on an analysis with several time frames, which are:

  • 15 min for a medium-term long-term trend and key support levels and resistance
  • 5 min for a short term trend
  • 1 min to open and close positions.

The time units are used to identify the context of the Forex pair in question.

We all know that the supports and resistances identified in higher time frames will have a greater impact on the price action. Therefore, the Ichimoku M15 and M5 analysis is essential.

The Ichimoku M1 chart is used to take the position according to the signals described earlier in this article.

How can we filter scalping opportunities with Ichimoku?

It is advisable not to consider the crossings of the cloud (Kumo) if in 26 periods before, the price is within the cloud. Only when the price is out of the cloud.

The forex scalping method with Ichimoku is suitable for:

Any type of market and any type of instrument such as:

  • Stock indexes with Ichimoku: CAC 40 CFD, Dow Jones CFD, S&P 500
  • Forex with Ichimoku with Euro USD with EUR USD CFD or Ichimoku for the pound sterling with GBP USD CFD
  • Raw materials with Ichimoku as gold with the GOLD CFD
  • Cryptocurrencies with Ichimoku in Bitcoin BTC CFD, Ichimoku in Ethereum ETH USD CFD

You can learn more about these strategies, and many, many more, in the educational webinars hosted by Admiral Markets several times a week! Click the banner below to join the community, and continue your forex education.

Ichimoku strategy for Swing Trading

For this strategy, we will use the parabolic SAR indicator in addition to the Ichimoku indicator.

This swing trading strategy tries to take advantage of the beginning of the cycle, that is, the momentum movement of the forex pairs. When Tenkan-sen crosses up to Kijun-sen, the forex market will tend to continue higher. The triggering of the parabolic SAR above the price marks a break and the last step necessary to take the position.

Source: GBP / USD CFD, H4, Admiral Markets, February 2020, MT5

  • Tenkan-sen must be higher than Kijun-sen
  • Tenkan-sen must have an upward slope (Forex Tip)
  • The parabolic SAR indicator must be at the highest point

Source: USD / CAD CFD, H4, Admiral Markets, February 2020, MT5

  • Tenkan-sen must be less than Kijun-sen
  • Tenkan-sen must have a descending slope
  • Sar Indicator at the lowest point

Similarly, when the Tenkan-sen is lower than the Kijun-sen, the Forex market will tend to decline, the downward slope of Tenkan-sen is another indication to open a short position. The activation of the parabolic SAR located below the price marks a break and the last criterion necessary to take the position.

Where to place the stop loss and take profit in this strategy with ichimoku?

  • Always behind the latest highs and lows, so the structure of the Forex market is respected.
  • If the market turns around before our first objective, it means that the current trend may change, so it is not time to enter but limit the risk and try to seize the next opportunity.
  • Whether it is a long or short position, the take profit has a 1:1 ratio.
  • A trailing stop intervenes as soon as it has reached the first take profit, which means that after a move in your favour of the same size as your stop loss, it’s time to leave your position with gains.
  • This trailing stop is activated with the SAR parabolic indicator. Once you reach your first goal, the trailing stop will move according to the SAR points on the Forex H4 chart based on:
    • New SAR lows for a long position
    • New SAR lows for a short position

Ichimoku in Combination with Other Indicators

It’s a general truism that using more than one indicator tends to yield more reliable results. Even the Ichimoku indicator can benefit from some backup. Ideally, you would aim to use indicators that perform the same function, but arrive at that result via different methods. For example, you could compare the support and resistance levels indicated by the cloud with the levels shown by the Center of Gravity Indicator.

Similarly, you could compare the trend indications of the Chikou span with the information about the trend strength provided by the Momentum Indicator. Obviously, the wider the selection of tools available to you, the better positioned you will be to make these kinds of comparisons.

You’ll surely find it useful to install the MetaTrader Supreme Edition plugin and substantially expand your armoury of trading tools. MTSE is a custom plugin for MetaTrader 4 and MetaTrader 5 that has been carefully put together by market professionals to provide a cutting-edge trading experience.

Forex Ichimoku Kinko Hyo in Summary

The Ichimoku trading system is an advanced indicator in that it plots more information compared to your average technical analysis tool. With a bit of practice, you can learn to readily absorb the data at a glance. After a while, you should be able to make better trading decisions on the back of its graphical summation of price action. Of course, the best place to practise is a demo trading account, where you can polish your skills without risking any money.

Get your start with trading today and open your Trader’s Room account with Admiral Markets. Take advantage of all the available tools, free educational resources, and much more! Just click the banner below.

This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.

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