How Do You Use Ichimoku Kinko Hyo MT4 Indicator?
Ichimoku Kinko Hyo Indicator
Ichimoku Kinko Hyo MT4 Indicator is a Japanese charting technique that was developed by a Japanese newspaper writer - with the pen name of Ichimoku Sanjin.
- Ichimoku means 'a glance' or 'one look'
- Kinko means 'equilibrium' or 'balance'
- Hyo is the Japanese word for "chart"
Thus, Ichimoku Kinko Hyo means, 'a glance at an equilibrium chart'. Ichimoku Kinko Hyo MT4 indicator attempts to identify and determine the likely direction of prices and help traders to determine the most suitable time to enter a trade or exit a trade.
How to Add MT4 Ichimoku Kinko Hyo Technical Indicator in MetaTrader 4 Charts
Calculation of Ichimoku Kinko Hyo MT4 Indicator
Ichimoku Kinko Hyo MT4 indicator consists of five lines drawn using the midpoints of previous price highs and price lows. The five lines are calculated as follows:
1) Tenkan-Sen: Conversion Line: Red Line (Highest High + Lowest Low) / 2, for last 9 price periods
2) The Kijun-Sen: Base Line: Blue Line (Highest High + Lowest Low) / 2, for last 26 price periods
3) Chikou Span: Lagging Span: Green Coloured Line Today's close price drawn 26 price periods behind
4) Senkou Span A: Leading Span A = (Tenkan Sen + Kijun Sen) / 2, plotted 26 price periods ahead
5) Senkou Span B: Leading Span B: (Highest High + Lowest Low)--/--2[Highest High + Lowest Low]--/--2, for the past 52 price periods, drawn 26 price periods ahead
Kumo: Cloud: area between Senkou Span A and B
How to Generate Buy and Sell Signals
Bullish Buy Signal - Tenkan-Sen crosses the Kijun-Sen from below.
Bearish Sell Signal - Tenkan-Sen crosses the Kijun-Sen from above.
However, there are different areas of strength for the buy signals and sell signals generated by Ichimoku Kinko Hyo MT4 indicator.
Technical Analysis of MT4 Indicator Ichimoku Kinko Hyo Technical Indicator
Bullish buy FX crossover signal occurs above the Kumo (clouds),
Very strong buy signal.
Bearish sell FX crossover signal occurs below the Kumo (clouds),
Very strong sell signal.
If a bullish crossover or bearish crossover signal takes place within the Kumo (clouds) this trading signal is considered a medium strength buy signal or medium strength sell signal.
A bullish crossover signal that occurs below the clouds is considered to be a weak buy signal while a bearish crossover signal that occurs above the clouds is considered to be a weak sell signal.
Support and Resistance Areas
Support and resistance levels can be interpreted by the presence of Kumo (clouds). The Kumo can also be used to determine the current trend.
- If price is above the Kumo - the prevailing trend is said to be upward trend.
- If price is below Kumo, the prevailing trend is said to be downward trend.
The Chikou Span or Lagging Span is also used to determine the strength of the buy signal or the strength of the sell signal.
- If the Chikou Span is below the closing price of the last 26 price periods ago and a sell signal is generated and the strength of the trend is to the downside - downward trend - otherwise the trading signal is considered to be a weak sell signal.
- If there is a bullish buy signal and the Chikou Span is above the price of the last 26 price periods ago - then the strength of the trend is to the upside - upward trend - otherwise the trading signal is considered to be a weak buy signal.
How to Add MT4 Ichimoku Kinko Hyo Technical Indicator in MT4 Charts
Step 1: Open MetaTrader 4 Navigator Panel
Open MetaTrader 4 Navigator panel as shown below: Go to 'View' menu (click), then choose 'Navigator' panel (click), or From Standard Tool-Bar click the 'Navigator' button or press keyboard MetaTrader 4 short-cut keys 'Ctrl+N'
On MT4 Navigator window, select "Indicators", by Double Clicking
How Do You Use MT4 Ichimoku Kinko Hyo Indicator?
How to Add Ichimoku Kinko Hyo MT4 Indicator
Expand the menu by clicking the expand button (+) or double click the 'indicators' menu, after this the button will appear as (-) and it will then display a list of MT4 indicators as shown below - choose the Ichimoku Kinko Hyo technical indicator from this list of MT4 indicators so that you can add the Ichimoku Kinko Hyo MT4 indicator on the MT4 chart.
How Do I Use MetaTrader 4 Ichimoku Kinko Hyo Technical Indicator?
How Install and Add Custom Ichimoku Kinko Hyo Indicator on MetaTrader 4?
If the MT4 indicator that you want to add on the MT4 charts is a custom MetaTrader 4 indicator - for example if the Ichimoku Kinko Hyo indicator that you want to add is a custom MT4 indicator you will need to first add this custom Ichimoku Kinko Hyo MT4 indicator on the MT4 platform and then compile this custom Ichimoku Kinko Hyo technical indicator so that this newly added Ichimoku Kinko Hyo MT4 custom indicator appears on the custom technical indicators list on the MetaTrader 4 platform.
To learn how to add Ichimoku Kinko Hyo indicators on MT4 software - how do you add Ichimoku Kinko Hyo indicator window to MT4 software? - how do you add Ichimoku Kinko Hyo custom indicator on MT4 software? - How to add a custom Ichimoku Kinko Hyo custom indicator on MetaTrader 4.
How Do I Use MetaTrader 4 Ichimoku Kinko Hyo Technical Indicator?
