The profitable Kijun Tenkant forex day trading strategy is a system that comprises of 2 simply to apply forex indicators.
These indicators are combined on the chart to yield a set of rules that when followed can trigger buy/sell opportunities in the market.
Chart Setup
MetaTrader4 Indicators: Rads_MACD.ex4 (default setting), Kijun Tenkant.ex4 (default setting)
Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour
Recommended Trading Sessions: New York Open & London Open
Currency Pairs: USD/CHF, EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, NZD/USD, EUR/CHF, CAD/JPY, CHF/JPY
Download
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Enter a buy in the market if the following chart or indicator patterns are on display:
- If the red line of the Kijun Tenkant indicator crosses its blue line bottom up, price is said to be pressured higher i.e. a buy signal is in order.
- If the histograms of the Rads_MACD.ex4 custom indicator turns lime and are aligned above the 0.00 signal level, price is said to be pushed higher, thereby giving way to a buy signal. Watch out for red histograms that form above the 0.00 signal level, this is an indication of seller pressures within a bullish trend.
Stop Loss for Buy Entry: Place stop loss 2 pips below short-term support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions hold sway:
- If price closes below the blue line of the Kijun Tenkant indicator as seen on Fig. 1.0 or if the red line crosses its blue line top downwards, it is a signal to exit or take profit.
- If the histograms of the Rads_MACD.ex4 custom indicator turns red and subsequently aligns below the 0.00 signal level, it is a trigger to exit or take profit accordingly.
Sell Entry Rules
The following rules or conditions will give precedence to sell triggers in the market:
- If the red line of the Kijun Tenkant indicator crosses its blue line top downward, price is said to be pushed lower, thus giving way to sell triggers in the market.
- If the histograms of the Rads_MACD.ex4 custom indicator turns red and are aligned below the 0.00 signal level, the sentiment in the market is said to be bearish, thus a short trigger.
Stop Loss for Sell Entry: Place stop loss 2 pips above short-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit on position(s) if the following takes place:
- If price closes above the blue line of the Kijun Tenkant indicator as seen on Fig. 1.1 or if the red line crosses its blue line bottom up, it is a trigger to exit or take profit.
- If the histograms of the Rads_MACD.ex4 custom indicator turns lime and subsequently aligns above the 0.00 signal level, it is a trigger to exit or take profit accordingly.
Sell Trade Example
Fig. 1.1
Free Download
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About The Trading Indicators
The Kijun Tenkant is a forex indicator that is a component of the Ichimoko Kinko Hyo indicator and finds its use as a metric for medium-term momentum.
The Rads_MACD.ex4 is a modified Moving Average Convergence Divergence (MACD) indicator and it better spot changes in momentum, direction strength and duration of a trend in a currency pair’s price.