Ichimoku Exponential Trend Forex Trading Strategy

Trading currencies online has always offered traders an exciting way participating in the world’s most liquid market.

This means traders have access to a cash pool that they can draw from if they have the right trading strategy.

The Ichimoku Exponential trend forex trading strategy is designed to give you an edge in the currency market and make trading to accumulate pips worthwhile.

Chart Setup

MetaTrader4 Indicators: Ichimoku.ex4 (Inputs Variable Modified; Tenkan-sen=6, kijun-sen=36), 32 EMA, BTtrend Trigger.ex4 (Default Setting)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day

Recommended Trading Sessions: Any

Currency Pairs: Any pair

Download

Download the Ichimoku Exponential Trend Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy order if the following indicator or chart pattern gets put on display:

  1. If the lime green line of the 32 EMA indicator cuts through the red line of the Ichimoku indicator in bottom up manner as depicted on Fig. 1.0, price is said to be taken higher i.e. a trigger to buy the designated currency pair.
  2. If the light see green and red line of the BTtrend Trigger custom indicator breaks above the 0.00 level (refer to Fig. 1.0), the overall market sentiment is said to be bullish i.e. a buy signal is imminent.

Stop Loss for Buy Entry: Place stop loss below the rising lime green line.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  1. If price opens and closes below the lime green and red line of the 32 EMA and Ichimoku indicator respectively, more bull are said to be exiting their position(s), hence an exit or take profit will suffice.
  2. If the light sea green line of the BTtrend Trigger custom MT4 indicator breaks below the red line as seen on Fig. 1.0, an exit or take is advised.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the lime green line of the 32 EMA indicator intersects the red line of the Ichimoku custom MT4 indicator in top downward fashion as shown on Fig. 1.1, price is said to be driven lower i.e. a trigger to sell the selected forex pair.
  2. If the light see green and red line of the BTtrend Trigger custom indicator dips below the 0.00 level (check Fig. 1.1), the sentiment in the market is said to be bearish, hence a sell signal is looming.

Stop Loss for Sell Entry: Place stop loss above falling lime green line.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If price opens and closes above the lime green and red line of the 32 EMA and Ichimoku indicator respectively, more bears are said to be cutting short their position(s), hence an exit or take profit will do.
  2. If the light sea green line of the BTtrend Trigger custom MT4 indicator rises above the red line as depicted on Fig. 1.1, an exit or take is recommended.

Sell Trade Example

Fig. 1.1

Free Download

Download the Ichimoku Exponential Trend Forex Trading Strategy

Ichimoku.ex4 is a technical or chart indicator that is also a trend trading system.

The creator of the indicator, Goichi Hosada, introduced Ichimoku as a “one glance” indicator so that in a few seconds you are able to decide whether a tradable trend is present or if you should wait for a better set-up on a specific pair.

The BTtrend Trigger.ex4 custom indicator just as its name suggests is trend finder that signals change in trend when its lines break above/below the 0.00 level.

The 32 EMA is an exponential moving average that has its period set at 32 and reduces the lag by adding more weight to recent price.

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