The Ichimoku Signals Cloud forex indicator for Metatrader 4 is an advanced Ichimoku trading indicator with some additional moving average crossover trading signals.
The Ichimoku Signals Cloud forex indicator is trend-following in nature.
The principle of the Ichimoku indicator is easy to understand:
- When price trades above the cloud, traders look for buy trade opportunities
- When price trades below the cloud, traders look for sell trade opportunities
The GBP/USD H1 chart below displays the Ichimoku Signals Cloud forex indicator in action.
Basic Trading Signals
Signals from the Ichimoku Signals Cloud forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy position after price closes above the orange cloud.
Sell Signal: Open sell position after price closes below the purple cloud.
Trade Exit: Close the open trade when an opposite signal occurs, or use your own method of trade exit.
Tips: Above the cloud, you can look to buy on dips as follows:
Buy on dips in the uptrend when the blue moving average line crosses the red moving average line from below.
Below the cloud, you can look to sell on rallies as follows:
Sell on rallies in the downtrend when the red moving average line crosses the blue moving average line from above.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (MA_Type, Price, MA_Tenkan, MA_Kjun, MA_Senkou) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Trend following
Copy and paste the ichimoku-average-indicator.mq4 indicator 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)