Best Ichimoku Settings for Stock Index Day Trading

Adding MT4 Ichimoku Stock Indices Technical Chart Indicator

Step 1: Open MT4 Software Navigator Window

Open MetaTrader 4 Navigator window as shown below: Go to 'View' menu (click), then choose the 'Navigator' window (click), or From Standard Tool Bar click the 'Navigator' button or use keyboard short cut keys 'Ctrl+N'

On MT4 Navigator panel, choose "Technical Indicators", (DoubleClick)

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Adding Ichimoku MT4 Stock Index Chart Indicator

Expand the menu by clicking the expand button marker (+) or double click the 'indicators' menu, after this the button will appear as (-) and will now display a list as shown below - select the Ichimoku stock indices indicator from this list of stock indices trading MT4 indicators so as to add the Ichimoku stock indices indicator on the stock index chart.

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How to Install Ichimoku Indicator MT4

If the Ichimoku stock indices technical indicator you want to add is a custom indicator - for example if the Ichimoku technical indicator you want to add is a custom Ichimoku indicator you will need to first add this custom Ichimoku indices indicator on the MT4 platform & then compile custom Ichimoku stock indices indicator so that the newly added Ichimoku custom stock indices indicator pops up on the listing of custom stock indices indicators on the MT4 software.

To learn how to install Ichimoku indicator on MetaTrader 4, how to add Ichimoku stock indices indicator panel to MetaTrader 4 & how to add Ichimoku custom MT4 indicator on MetaTrader 4 - How to add a custom Ichimoku stock indices indicator on MetaTrader 4.

About Ichimoku Indices Technical Indicator Tutorial

Ichimoku Technical Indicator

Ichimoku is a Japanese charting technique

• Ichimoku means 'a glance' or 'one look'
• Kinko means 'equilibrium' or 'balance'
• Hyo is the Japanese word for "chart"

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

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Calculation

Ichimoku indicator consists of five lines plotted using the mid points of previous highs and lows. Five lines are calculated as follows:

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

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

3) Chikou Span: Lagging Span: Green Line Today's closing stock index price plotted 26 stock index price periods behind

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

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

Kumo: Cloud: area between Senkou Span A and B

Ichimoku Stock Indices Trading Analysis & How to Generate Indices Trading Ichimoku Signals

Bullish stock indices signal - Tenkan-Sen crosses the Kijun-Sen from below.

Bearish stock indices signal - Tenkan - Sen crosses the Kijun - Sen from above.

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

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Bullish stock indices crossover signal forms above the Kumo (clouds),

Very strong buy signal.

Bearish stock indices crossover trading signal forms below the Kumo (clouds),

Very strong sell signal.

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

A bullish stock indices trading crossover signal that occurs below the clouds is considered a weak buy signal while a bearish stock indices trading crossover signal that occurs above the clouds is considered a weak sell signal.

Support and Resistance Levels

Support and resistance levels can be predicted by the presence of Kumo (clouds). Kumo can also be used to identify the current stock index price trend of the stock index price.

• If stock index price is above the Kumo, the prevailing stock index price trend is said to be upwards stock index price trend.
• If stock index price is below the Kumo, the prevailing stock index price trend is said to be downwards stock index price trend.

Chikou Span or Lagging Span is also used to determine the strength of the buy or sell signal.

• If the Chikou Span is below the closing stock index price of the last 26 periods and a sell signal is given, then the strength of the stock index price trend is downwards, otherwise the stock indices signal is considered to be a weak sell signal.
• If there is a buy signal & the Chikou Span is above the stock index price of the last 26 periods, then strength of the stock index price trend is to the upside buy signal, otherwise it is considered to be a weak buy signal.

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