Kijun Tenkant Forex Trading Strategy

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:

  1. 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.
  2. 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:

  1. 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.
  2. 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:

  1. 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.
  2. 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:

  1. 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.
  2. 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.

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