Simple Ichimoku Forex Trading Strategy

The simple Ichimoku forex trading strategy takes advantage of the Ichimoku trading indicator in delivering signals to currency traders.

The strategy is better suited for trending markets on all timeframe’s.

Chart Setup

MetaTrader4 Indicators: Alternative_Ichimoku.ex4 (default setting), Gioteen-Norm.ex4 (default setting)

Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hour, Day, Week

Recommended Trading Sessions: Any session

Currency Pairs: Any pair

Download

Download the Simple Ichimoku Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy in the market if the following conditions or rules hold sway:

  1. If price opens and closes above the light pink cloud of the Alternative_Ichimoku.ex4 custom indicator as shown of Fig. 1.0, the market sentiment is said to be bullish, as such a buy signal is appropriate following such move.
  2. If the red line of the Gioteen-Norm.ex4 custom indicator breaks and hovers above the 0.00 signal level, it is a trigger to go bullish i.e. a buy entry.

Stop Loss for Buy Entry: Place stop loss below immediate support or below the red Ichimoku histogram.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following indicator or chart patterns are in display:

  1. If price falls and closes within the light pink cloud of the Alternative_Ichimoku.ex4 custom indicator as seen on Fig. 1.0, is a sign of anticipation of a signal or a sign that price is flat, as such an exit or take profit is advised.
  2. If the red line of the Gioteen-Norm.ex4 custom indicator declines to fall below the 0.00 signal level, it is a trigger to exit or take profit forthwith.

Sell Entry Rules

Enter a sell in the market if the following price patterns get displayed:

  1. If price opens and closes below the light steel blue cloud of the Alternative_Ichimoku.ex4 custom indicator as shown of Fig. 1.1, the market I aid to be undergoing a bearish sentiment i.e. a trigger to go short on the pair of interest.
  2. If the red line of the Gioteen-Norm.ex4 custom indicator breaks and hovers below the 0.00 signal level, it is a trigger to go bearish i.e. a sell entry.

Stop Loss for Sell Entry: Place stop loss above immediate resistance above the blue Ichimoku histogram.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit on position(s) if the following conditions or rules take precedence:

  1. If price rises and closes within the light steel blue cloud of the Alternative_Ichimoku.ex4 custom indicator as seen on Fig. 1.1, is a signal of an upcoming trend or a sign that price is flat, as such an exit or take profit is advised.
  2. If the red line of the Gioteen-Norm.ex4 custom indicator rises to break above the 0.00 signal level, it is a trigger to exit or take profit without delay.

Sell Trade Example

Fig. 1.1

Free Download

Download the Simple Ichimoku Forex Trading Strategy

About The Trading Indicators

The Alternative_Ichimoku.ex4 custom indicator was designed as an alternative to the well-known indicator Ichimoku Kinko Hyo.

The indicator is used to measure momentum in line with likely zones of support and resistance.

The Gioteen-Norm.ex4 custom indicator can be used to spot divergence in the market as well as trend, using its indicator line in reference to the 0.00 signal level.

It is a buy signal when its line hovers above the 0.00 signal level and a sell signal when it does the opposite.

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