What is the Ichimoku Trend Strategy for MT4?

The Ichimoku trend strategy is a technical analysis system that uses the color of lines to indicate the trend of a security or currency. The system was developed by a Japanese trader, Ichimoku Kogyo (1912-1988).

The Ichimoku trend strategy is used to identify whether security or currency is in an upward or downward trend. The system uses five colors to depict the current status of protection or currency: red, orange, yellow, green, and blue.

Ichimoku Trend Strategy

Download free Ichimoku Trend Strategy

The theory behind the system is that prices will move towards the upper-left corner of the chart if there is an uptrend and towards the lower-right corner if there is a downtrend. The five colors indicate how strong this trend is: red means a strong uptrend; orange means a moderate uptrend; yellow means a weak uptrend; green means no direction (equal price), and blue means a strong downtrend.

How to use Ichimoku Trend Strategy for MT4

In this article, we’ll discuss how to use the Ichimoku Trend Strategy to make successful trades in the forex market.

The Ichimoku Trend Strategy is a technical analysis strategy that uses charts to identify patterns and predict future trends. It involves using three indicators (the MACD, RSI, and stochastics) to determine whether a trend is still in effect and then make trades based on this information.

The Ichimoku Trend Strategy can be used with any forex broker, but we recommend using MetaTrader 4 because it has the best built-in tools for technical analysis. Once you have installed MT4, open your account and click on the “Strategy” tab at the top of the screen. Then, select “Ichimoku Trend Strategy” from the list of strategies available.

Next, you need to set up your indicators. The first indicator you’ll want to use is the MACD (Moving Average Convergence Divergence). This indicator measures the difference between two moving averages – one long-term and one short-term – and determines whether or not there’s a trend present. To set it up, enter two periods into the “Inputs” field (e.g., 12 and 24), and then click on the “MACD” button to activate it.

Ichimoku Trend Strategy MT4 trading settings

Here are some forex Ichimoku Trend Strategy MT4 trading settings that you can use to improve your trading performance:

1. Use the 10-period moving average as your primary indicator. This will help you identify trends and make better decisions when trading forex.

2. Use the 50-period moving average as a secondary indicator. This will help you avoid getting caught in short-term fluctuations and help you stay disciplined when trading.

3. Remember to adjust your position size based on the strength of the indicators and the market conditions. Be sure to keep an eye on your trades’ entry and exit points to make successful profits over time.

Ichimoku Trend Strategy Advantages

There are several advantages that the forex Ichimoku Trend Strategy has over other trend-based trading strategies.

For one, it is a highly effective way to trade the daily and intra-day markets. This is because it uses indicators specifically designed to identify short-term trends in price movements.

Another advantage of this strategy is that it is simple to use. So that you know – all you need to do is install the appropriate software and follow the instructions I’ve included. This makes it ideal for beginners just starting in forex trading.

Furthermore, this strategy is relatively riskless, as you can quickly mitigate potential losses by selling positions if the trend turns bearish. Finally, this strategy offers fast and easy execution, which means you can make decisions quickly and profit from them immediately.

Ichimoku Trend Strategy Disadvantages

There are a few disadvantages to using the forex Ichimoku Trend Strategy. First and foremost, it is a very all-or-nothing strategy. You will likely lose money on your trades if you don’t have the correct technical indicators set up in your trading platform.

Another disadvantage is that this strategy is not exceptionally reliable. It can be prone to sudden and dramatic direction shifts, making it difficult to make consistent profits over time.

And finally, there are more effective ways to trade short-term volatility. While it can occasionally provide good short-term returns, there are better ways to approach volatile markets.

IT Strategy installation on MT4

If you’re looking for a reliable way to make money, consider using a forex Ichimoku Trend Strategy. This strategy uses the Ichimoku Clouds indicator to help you identify patterns in the market and make informed trading decisions.

To install it on your MT4 platform, open your account and click ‘Indicators.’ Next, find and select the ‘Ichimoku Clouds’ indicator, and drag it onto your chart. You can then configure the indicator’s settings by clicking on its icon in the bottom right corner of the chart.

As with all trading strategies, there is no one-size-fits-all approach to using an Ichimoku Cloud Strategy. However, some basic guidelines that will help you get started include: setting a buy and sell limit, adjusting your position sizes based on how confident you are in your analysis, and keeping a close eye on historical data to stay ahead of the trend.

Ichimoku Trend Strategy mt4

Ichimoku Trend Strategy mt4 free download

Conclusion

While there are countless ways to make money in the forex market, using a forex Ichimoku Trend Strategy is one of the most reliable and effective methods available. Using this strategy, you can remain confident in your trading decisions while benefiting from the market’s short-term volatility.

Author: Dominic Walsh
blank

I am a highly regarded trader, author & coach with over 16 years of experience trading financial markets. Today I am recognized by many as a forex strategy developer. After starting blogging in 2014, I became one of the world's most widely followed forex trading coaches, with a monthly readership of more than 40,000 traders! Make sure to follow me on social media: Instagram | Facebook | Linkedin | Youtube| Twitter | Pinterest | Medium | Quora | Reddit | Telegram Channel

Leave a Comment