Easy Forex : Simple Trading with Ichimoku

Ichimoku Kinko Hyo is one of the default MT4 indicators that can be used for long-term trading. The use of the indicator Ichimoku is very simple since we only focus on the intersection of the red line (Tenkan Sen) and blue line (Kijun Sen). In addition, we can see the overall market conditions by looking at price movements against clouds (Kumo). If the price is above the Kumo, means the market are bullish. If the price is below the Kumo means the price is bearish.

Before we use the Ichimoku indicators, we must know the parts of the indicator Ichimoku Kinko Hyo is as follows:

1. The Tenkan Sen (red line)
Tenkan Sen (red line) equals 9 periods Moving Average Exponential
2. The Kijun Sen (blue line)
Kijun Sen (blue line) is equal to Exponential Moving Average period 26
3. The Chikou Span (the green line)
Chikou Span (the green line) is equal to the price movement is happening (the same as the candlestick). Chikou Span also called lagging lane.
4. Kumo (Clouds)
Kumo (Clouds) as a gesture if the price is above the market conditions then were Kumo bullish. If the price is below the Kumo is bearish market conditions then. If the price of the dwelling in Kumo then market conditions being sideways (consolidated).
The upper part of the support functions as Kumo, Kumo bottom serves as resistance. If the price is bearish price then fumbled around in Kumo. If past the top or bottom of the Kumo means prices are the breakout.

How do I use trading with Ichimoku Kinko Hyo?

BUY ENTRY

If the Tenkan Sen (red line) crosses the Kijun Sen (blue line) from the bottom to the top a bullish signal means. We open a BUY position.
A bullish signal strength the more powerful if Chikou Span (the green line) is above the Kumo

SELL ENTRY

If the Tenkan Sen (red line) crosses the Kijun Sen (blue line) from the top down means the signal is bearish. We open SELL position.
Bearish signal strength the more powerful if Chikou Span (the green line) is below the Kumo

BREAKOUT
Ichimoku indicator can also be used to find out the condition of a market breakout. We focus only on price movement while in Kumo.
If the price of the dwelling in Kumo Kumo top side then get out and ride and hold it as a condition of breakout ride.