Metatrader 4 Indicator - ICHIMOKU

Sunday, June 20, 2010

Ichimoku is one of metatrader 4 (MT4) standard indicator. Sometime it also called Ichimoku Kinko Hyo. Many traders used this indicator to execute trading or to forecast the trade.

Ichimoku consist of 5 separate lines. As you can see in the picture below:






















1. (RED LINE)-TENKAN SEN

(HIGHEST HIGH + LOWEST LOW)/2 for the past 9 periods


2. (BLUE LINE)-KIJUN SEN

(HIGHEST HIGH + LOWEST LOW)/2 for the past 26 periods


3. (GREEN LINE)-CHIKOU SPAN

(CURRENT CLOSING PRICE) time-shifted backwards (into the past) 26 periods


4. (UPPER CLOUD)-SENKOU SPAN A

(TENKAN SEN + KIJUN SEN)/2 time-shifted forwards (into the future) 26 periods


5. (LOWER CLOUD)-SENKOU SPAN B

(HIGHEST HIGH + LOWEST LOW)/2 for the past 52 periods time-shifted forwards (into the future) 26 periods


*KUMO – the cloud area between Senkou Span A and Senkou Span B


How to trade with it? I will explain it later in my next post.