The Ichimoku Signal MT4 indicator is a simplified version of the traditional Ichimoku technical trading indicator.
As opposed to the traditional version, the Ichimoku Signal Metatrader 4 indicator consists of only 1 signal line.
Price action below the signal line is considered bearish while above bullish.
- A buy signal occurs when price crosses the red Ichimoku Signal from below and closes above
- A sell signal occurs when price crosses the red Ichimoku Signal from above and closes below
It’s recommended to use this Ichimoku version together with an oscillator.
For instance MACD or slow Stochastic.
Price above the Ichimoku Signal MT4 indicator and oversold oscillator values would create a buy trade opportunity.
Price below the Ichimoku Signal MT4 indicator and overbought oscillator values would create a sell trade opportunity.
Furthermore, the indicator displays volatility, range for day and some other interesting information.
The EUR/USD 4-Hour chart below displays the Ichimoku Signal Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Ichimoku Signal MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy trade position when price closes above the red Ichimoku Signal line from below.
Sell Signal: Open sell trade position when price closes below the red Ichimoku Signal line from above.
Trade Exit: Close the open buy/sell trade when an opposite signal occurs, or use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (SSP, SSK) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the alternative-ichimoku.mq4 into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)