
Ichimoku Signals Cloud Indicator
Platform: MT4 Type: Trend Last update: September 28, 2024The Ichimoku Signals Cloud Indicator for MT4 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.
Understanding the ichimoku signals cloud
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
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