Ichimoku is one of the most popular trend-following indicators in the market. However, mastering Ichimoku and applying it for real trading purposes is a little bit complex and not suitable for everyone. Alternative Ichimoku simplifies the original version of the indicator and makes it suitable for the newbie traders.
Alternative Ichimoku is a universal trading key that can be applied to trade all kinds of forex currency pairs listed in the financial markets. Besides, it suits almost all sorts of timeframe charts within the Forex MT4 trading platform.
Alternative Ichimoku Overview
Download and install the indicator on your MT4 terminal. Once you’re done, find the trading chart like the following image:
Alternative Ichimoku Explanation
Alternative Ichimoku simply plots a trend cloud drive by AI Trends. Price is supported by the top edge of the cloud and price candles keep closing above the AI Trend level confirms the market trend as bullish.
For a bearish trend confirmation, the price must be resisted by the lower edge of the Ichimoku Cloud and the price candles should also be closed below the current Ai Trend level.
Once a trend is confirmed by Alternative Ichimoku, your job is to pull the trigger according to the trend direction. Stop-loss limits should be set based on the current cloud levels. For determining the profit-taking level, wait until the price candles come back and close inside the trending cloud.
Alternative Ichimoku: Buy Parameters
- Price remains above the AI Trend level
- Price candles keep closing above the top edge of the Ichimoku Cloud
- Buy triggers after the above conditions are done
- Set stop loss below the current level of Ichimoku Cloud
- Exit long/take profit whenever the price candles start to close inside the cloud area
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Alternative Ichimoku: Sell Parameters
- Price remains below the AI Trend level
- Price candles keep closing below the bottom edge of the Ichimoku Cloud
- Sell triggers after the above conditions are done
- Set stop loss above the current level of Ichimoku Cloud
- Exit short/take profit whenever the price candles start to close inside the cloud area