How to Set Ichimoku Kinko Hyo on MetaTrader 4 Charts

Step 1: Open the Navigator Window on Trading Software Platform

Open Navigator window just as shown and illustrated below: Go to 'View' menu (press on it), then select 'Navigator' window (press), or From Standard ToolBar click the 'Navigator' button or press key board short-cut keys 'Ctrl+N'

On Navigator panel, choose 'Indicators', (DoublePress)

How to Set Ichimoku Kinko Hyo on MT4 - How Do You Use Ichimoku Indicator?

How to Add Ichimoku Kinko Hyo in the MT4 - MT4 Ichimoku Indicator

Step 2: Expand the Indicators Menu on the Navigator - Adding Ichimoku MT4 Indicator

Expand the menu by clicking the enlarge button marker sign '+' or double-click the 'indicators' menu, afterwards this particular specified button will appear and be shown as (-) & will now display a list as shown below - choose the Ichimoku chart indicator from this list of trading indicators so as to add the Ichimoku indicator to the chart.

How to Set Ichimoku Kinko Hyo on the Forex Chart - How to Use Ichimoku Indicator

How to Add Ichimoku Kinko Hyo - From the Above window you as a trader can then place Ichimoku indicator that you want on the Forex chart

How to Set Custom Ichimoku Technical Indicator to MT4 Platform Software

If the indicator you want to add is a custom indicator - for example if the Ichimoku technical indicator you want to add is a custom technical indicator you will need to first add this custom Ichimoku indicator on the MT4 software & then compile the custom Ichimoku indicator so that as the newly added Ichimoku Kinko Hyo custom indicator pops up on the list of custom technical indicators in MetaTrader 4 software.

To learn how to install Ichimoku indicators on MT4 Platform, how to place Ichimoku indicator window to MT4 and how to add Ichimoku Kinko Hyo custom indicator on the MT4 Software - How to add a custom Ichimoku indicator in MT4 Platform.

About Ichimoku Indicator Explanation

Ichimoku Indicator

Ichimoku Kinko Hyo is a Japanese charting method that was created by a Japanese newspaper writerjournalisteditor, with a pen name known of as Ichimoku Sanjin.

Ichimoku means: 'a glance' or 'a look'
Kinko means 'equilibrium' or 'balance'
Hyo is a Japanese word/term for "chart"

Thus, Ichimoku means, 'a glance at an equilibrium chart'. Ichimoku attempts to identify the likely direction of price and help the trader to determine the most suitable trading time to enter or exit the market.

How Do I Use Ichimoku Indicator? - How to Set Ichimoku Kinko Hyo on MetaTrader 4 Charts

Calculation

This indicator consists of five lines plotted using the midpoints of previous highs and lows. The 5 lines are calculated as follows:

1) Tenkan Sen: Conversion Line: Red Line (Highest High + Lowest Low) / 2, for last 9 price periods

2) Kijun-Sen: Base Line: Blue Line (Highest High + Lowest Low) / 2, for last 26 price periods

3) Chikou Span: Lagging Span: Green Color Line Today's closing price drawn and plotted 26 price periods behind

4) The Senkou Span A: Leading Span A = (Tenkan-Sen + Kijun-Sen) / 2, drawn 26 price periods ahead

5) Senkou Span B: Leading Span B: (Highest High + Lowest Low)/2, for the past 52 price periods, drawn 26 price periods ahead

Kumo: Cloud: area between Senkou Span A & B

Technical Analysis and Generating Signals

Bullish trading signal - Tenkan-Sen crosses the Kijun-Sen from below.

Bearish trading signal - Tenkan-Sen crosses the Kijun-Sen from above.

However, there are different areas of strength for the buy and sell trade signals generated.

How Do You Use Ichimoku Indicator?

Technical Analysis in FX Trading

Bullish cross over signal occurs and happens above the Kumo (clouds),

Very strong buy trade signal.

Bearish cross-over signal occurs and happens below the Kumo (clouds),

Very strong sell signal.

If a bullish/ bearish cross over signal takes place within the Kumo (clouds) it is considered a medium strength buy or sell signal.

A bullish cross over that occurs below the clouds is regarded a weak buy trade signal while a bearish cross over that occurs above the clouds is regarded a weak sell signal.

Support and Resistance Areas

Support & resistance levels can be predicted by the presence of Kumo (clouds). The Kumo also can be used to identify the current trend of the market.

If the price is above Kumo, current trend is said to be upward.
If the price is below Kumo, current trend is said to be downwards.

Chikou Span or Lagging Span is also used to measure the energy of the buy/sell signal.

If the Chikou Span is below the closing price of the last 26 periods ago & a sell short signal is given/generated, then the momentum of Forex trend is downward, otherwise the signal is considered to be a weak sell signal.
If there a bullish signal and the Chikou Span is above the price of the last 26 periods ago, then the momentum of the trend is to the up-side, otherwise it is considered to be a weak buy signal.

Get More Tutorials:

Trade Forex Trading