In this article I propose a complete lesson as taken from the Forex webinar “Ichimoku Kinko Hyo trading strategy” and related PDFs sponsored by the XM broker. You will learn how to follow the trend and apply tips and tricks to find the purchase and sale points with the Ichimoku Kinko Hyo indicator.
The Ichimoku indicator is free and is present in all MetaTrader 4 and 5 platforms. You can enhance your trading also thanks to our Ichimoku software such as:
- Kumo Breakout indicator
- Kumo Breakout Trade Manager for semi-automatic or automatic trading [see here]
The Ichimoku indicator was invented by a Japanese journalist in the years leading up to the Second World War. The study and improvement of the Ichimoku trading strategy lasted over 30 years and only later was it spread all over the world. Today the Ichimoku strategy is recognized as one of the best and most reliable strategies, and in fact we find the Ichimoku indicator proposed as a standard in many trading platforms including the MetaTrader.
The Ichimoku indicator consists of 5 main curves:
- Chikou Span (green – confirmation line for trends, supports and resistances)
- Tenkan-Sen (red – trend line and Kijun-sen crossing signal)
- Kijun-Sen (blue – trend line and trade exit signal)
- Senkou Span A – (short-term support and resistance line)
- Senkou Span B – (middle-term support and resistance line)
Finally, there is the Kumo, ie. the area that is created between Senkou Span A and Senkou Span B.
Ichimoku: the complete strategy
The fundamental aspect of the Ichimoku trading strategy is the visual impact that allows you to understand the basic elements of the trend (such as supports and resistances) in a few steps. However, its advanced use allows to evaluate numerous entry signals and to filter out false movements or weak trends.
The Ichimoku strategy can be applied to all markets such as Forex, indices or commodities and on the main timeframes: Daily, H4 or even H1. We do not recommend applying it on smaller timeframes.
Plotting supports and resistances with the Kumo
Supports and resistances with Ichimoku Kumo: here is the video of the Forex webinar dedicated to this topic.
Ichimoku Kinko Hyo PDF
Here is the link to download the slides for free – CLICK HERE
Ichimoku Kinko Hyo parameters
The standard parameters are 9, 26 and 52 and respect the advice of its creator. However, it is possible to modify them and adapt them to the underlying being studied. We currently prefer to use standard parameters or parameters that are Fibonacci numbers: 8, 21 and 89 or a mathematic set at 4,8,16.
Ichimoku Kinko Hyo intraday Forex
As advised during the Ichimoku trading webinar, before going below the daily timeframe it is advisable to go to the monthly and weekly chart to draw the supports and resistances through the Chikou Span (green line).
Ichimoku EA Expert Advisor: the trading system that works
We have created some Ichimoku Expert Advisors dedicated to some of the possible strategies revolving around this fantastic indicator. Here are the specs:
Ichimoku Timing Zones (reference to time cycles)
The last part of the Ichimoku strategy is dedicated to the study of timing zones where important movements can occur that meet supports and resistances. This is the most advanced and least explored part by Ichimoku traders, and that we have also developed according to our personal vision. We invite you to view the following video:
Ichimoku Fast Kumo: We-Trading custom Kumo setting
In the video above we presented a special indicator created starting from the Ichimoku Kumo. In this particular setting, the Kumo are much more responsive and are not shifted forward. The main advantage of this is that we are able to use them as trend entry signals (with optional standard Kumo filter). In this video you’ll find all the details.
If you want to download the We-Ichimoku Fast Kumo indicator for free, you must subscribe to our newsletter [go to the bottom of the page] or to our Telegram channel [click here].
Ichimoku manual and guide
If you are reading this far, it means that you have found this article to be very interesting and complete. As you may have noticed, I have collected on this page several videos that I have also published on YouTube. If you have the patience to view them, you will have the chance to get the best Ichimoku manual on the Web.
This set of information collected is a real Ichimoku manual with detailed guidance on many aspects.
Ichimoku Kumo, Kijun-Sen vs SuperTrend indicator
In this last video, I show the relationship between Kumo and Kijun-Sen and a comparison with the SuperTrend indicator.