Simple Ichimoku Trend Forex Strategy

The Simple Ichimoku Trend Forex strategy is a simple and effective trading system that uses a unique trading setup.

Three technical indicators make up this system and are said to be blended in a superior manner.

The trend patterns are easily noticed and you will need some time and practice to use it properly.

The strategy works best as a longer-term trading system that is poised to deliver consistent profit.

The following examples are carefully drafted to further show the trend following attributes of this strategy.

Chart Setup

MetaTrader4 Indicators: alternative-ichimoku.ex4 (Default Setting), super-trend.ex4 (Default Setting), precision-trend-histogram (Default Setting)

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

Recommended Trading Sessions: Any

Currency Pairs: Any pair

Download

Download the Simple Ichimoku Trend Forex Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a bullish trade if the following indicator or chart pattern gets put on display:

  1. If price trades above the red line of the alternative-ichimoku Metatrader 4 custom indicator (see Fig. 1.0), bulls are said to be pushing price to the upside i.e. a trigger go long on the stipulated forex pair.
  2. If the super-trend indicator line turns lime while price trades somewhat above it as shown on Fig. 1.0, price is said to be driven higher i.e. a signal to go bullish on the desired currency pair.
  3. If the precision-trend-histogram indicator displays green bars within its indicator window as depicted on Fig. 1.0, price is said to be driven higher i.e. a trigger to go long on the designated fx pair.

Stop Loss for Buy Entry: Place stop loss below medium-term support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit from all trades if the following rules or conditions takes precedence:

  1.  If price closes below the red line of the alternative-ichimoku custom indicator while a bullish trend is ongoing, more bulls are said to be leaving the market, hence an exit or take profit is advised.
  2. If the line of the super-trend indictor turns red during a bullish trend, it is indicative of diminishing bulls power, therefore an exit or take profit is recommended.
  3. If the precision-trend-histogram indicator bars turns red during the course of a bullish alert (see Fig. 1.0), it is a trigger to exit or take profit immediately.

Sell Entry Rules

Go short if the following setups gets displayed successfully on the activity chart:

  1. If price trades below the red line of the alternative-ichimoku indicator as seen on Fig. 1.1, bears are said to be driving price lower i.e. a trigger go short on the selected currency pair.
  2. If the super-trend indicator line turns red while price trades slightly below it as exemplified on Fig. 1.1, price is said to be pushed lower i.e. a signal to go bearish on the currency pair of interest.
  3. If the precision-trend-histogram indicator displays red bars within its indicator window as illustrated on Fig. 1.1, price is said to be pushed lower i.e. a signal to sell the preferred forex pair.

Stop Loss for Sell Entry: Place stop loss above medium-term resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If price closes above the red line of the alternative-ichimoku custom indicator during a buy signal, bears are said to be exiting their positions, hence an exit or take profit is recommended.
  2. If the line of the super-trend indictor turns lime while a bearish signal is running, it is indicative of weakening bears power, therefore an exit or take profit will suffice.
  3. If the precision-trend-histogram indicator bars turns green while a bearish signal is running (refer to Fig. 1.1), it is a trigger to exit or take profit at once.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

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

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

The super-trend.ex4 indicator is a trend following and non-repainting custom indicator that is based on CCI.

The precision-trend-histogram.ex4 is an indicator that measures market trends quite well, with histograms that are colored according to the current “precision trend” state.

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