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Ichimoku Signals Cloud Indicator

Introduction to the Ichimoku Signals Cloud Indicator

The Ichimoku Signals Cloud Indicator is an advanced Ichimoku Kinko Hyo forex indicator with some additional moving average crossover trading signals. It is a trend-following indicator in nature. That gauge is suitable for both beginners and advanced forex traders.

The Ichimoku Signals Cloud Indicator fits all kinds of timeframes and currency pairs. It is displayed directly on the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.

How does it work? How to apply in trading?

Trading Rules Explanation

The Ichimoku Signals Cloud Indicator applies the same basic principles as trading with the standard Ichimoku Kinko Hyo indicator, but additionally, you need to look at the moving average crossovers. When the price is above the cloud: buy on dips in the uptrend when the red moving average line crosses above the blue moving average line. Conversely, when the price is below the cloud: sell on rallies in the downtrend when the red moving average line crosses below the blue moving average.

Buy Signal

Follow these steps for a long trade:

  • Price is located above the cloud
  • The red moving average is above the blue moving average
  • Price swings higher from recent low swing
  • Buy trade is triggered after the above conditions are met
  • Set stop loss a few pips below the last swing low of the market
  • Take profit or exit trade whenever price cross into the cloud or use your own method of trade exit

Ichimoku Signals Cloud Indicator Example of Buy Trade

Sell Signal

Follow these steps for a short trade:

  • Price is located below the cloud
  • The red moving average is below the blue moving average
  • Price swings lower from recent high swing
  • Sell trade is triggered after the above conditions are met
  • Set stop loss a few pips above the last swing high of the market
  • Take profit or exit trade whenever price cross into the cloud or use your own method of trade exit

Ichimoku Signals Cloud Indicator Example of Sell Trade

As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.

How to set up the Ichimoku Signals Cloud indicator in MT4?

Installation Guide

Download the Ichimoku Signals Cloud.rar archive at the bottom of this post, unpack it, then copy and paste the Ichimoku Signals Cloud.ex4 or Ichimoku Signals Cloud.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.

You can gain access to this folder by clicking the top menu options, which goes as follows:

File > Open Data Folder > MQL4 > Indicators (paste here).

Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.

Bottom Line

The Ichimoku Signals Cloud indicator is well worth adding to your trading collection. A good forex indicator will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it.

Download Free Forex MT4 Ichimoku Signals Cloud Indicator

To download the Ichimoku Signals Cloud Indicator for Metatrader 4 (MT4) for free just click the button below:

Ichimoku Signals Cloud Indicator Free Download

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