Forex Ichimoku Kinko Hyo indicator is among the most searched forex trading indicators on the web. It is demanded by a lot of traders because it is a classic Japanese technical indicator that works in today’s market as well as it did in the past.
Ichimoku Kinko Hyo indicator can be used in several ways as per the requirement of the trader but here I will use it as a trend following indicator. Forex Ichimoku Kinko Hyo Indicator is actually a very good trend indicator. You can easily define the trend of the market by using this forex trading indicator.
Forex Ichimoku Kinko Hyo Indicator Overview
|Time Frame||Currency pairs||Name of Indicator||Rating|
|M5, H1, H4, and D1||Any||Ichimoku Kinko Hyo||9.8/10|
I expect you to know about the basic concepts of market trend before using this indicator. You should be able to figure out whether the market is trending or not just at a glance, yes without using any indicator. Once you see that the market is trending upward, you should use indicators to time the market positions. When you install Forex Ichimoku Kinko Hyo indicator in your MT4, your chart should look as shown below:
About Forex Ichimoku Kinko Hyo Indicator
Ichimoku Kinko Hyo indicator helps to gauze future price momentum and shows the potential support and resistance regions. Ichimoku Kinko Hyo means “a glance at a chart in equilibrium”.
There are four different things that you should focus on while using Forex Ichimoku Kinko Hyo Indicator. They are Senkou Span, Kijun Sen, Tenkan Sen, and Chikou Span. All these components are built using different time periods and formulae. It is not necessary to know the formula behind these lines to use them successfully.
In this article I have developed crystal clear parameters for buying and selling conditions.
Ichimoku Kinko Hyo: Buy Parameters
- You should choose a market that is up trending.
- Green line (Chikou Span indicator) should cross above all the other lines.
- Market should cross above red line, blue line and Senkou Span indicator.
- Buy at the market rate when above parameters are met.
- Keep your stop loss below the recent swing low.
- Book your profits when green line (Chikou Span indicator) crosses below Senkou Span indicator.
Continue Reading: Var Moving Average Indicator
Ichimoku Kinko Hyo: Sell Parameters
- You should choose a market that is down trending.
- Green line (Chikou Span indicator) should cross below all the other lines.
- Market should cross below red line, blue line and Senkou Span indicator.
- Sell at the market rate when above parameters are met.
- Keep your stop loss above the recent swing high.
- Book your profits when green line (Chikou Span indicator) crosses above Senkou Span indicator.