About the Kijun Sen and Envelopes Forex Indicator
The Kijun Sen and Envelopes Forex Indicator for MT4 is a trend-based trading tool built around the Kijun trading method.
It helps traders identify balanced price levels, trend direction, and high-probability pullbacks for both entries and exits.
The Kijun Sen line reflects market equilibrium by averaging recent price ranges.
Price often reacts to this level during trending conditions.
The Envelopes indicator adds confirmation by showing whether the market is expanding upward or downward around a central average.
When both components align, traders gain a practical framework to stay on the right side of the trend.
The indicator plots three Sen lines along with Envelopes lines in green, blue, and red directly on the main MT4 chart, making trend behavior easy to follow in real time.
Free Download
Download the “Kijun_Sen_and_Envelope.mq4” indicator for MT4
Key Features
- Combines the Kijun Sen methodology with Envelopes trend direction
- Plots three Sen lines and Envelopes on the main MT4 chart
- Helps identify pullbacks within active trends
- Simple to use while remaining technically sound
Indicator Chart
The chart displays the Kijun Sen and Envelopes indicator applied to a live MT4 price chart.
The colored Sen lines show dynamic balance levels, while the Envelopes reveal the current trend direction and price expansion zones.
Guide to Trade with Kijun Sen and Envelopes
Buy Rules
- Ensure the Envelopes indicator is sloping upwards
- Wait for the price to pull back toward the Kijun Sen line
- Enter a buy trade when price holds above the Kijun Sen and moves higher
Sell Rules
- Ensure the Envelopes indicator is sloping downwards
- Wait for the price to retrace toward the Kijun Sen line
- Enter a sell trade when price remains below the Kijun Sen and continues lower
Stop Loss
- Set the stop loss below the most recent swing low for buy trades
- Set the stop loss above the most recent swing high for sell trades
- Allow room for normal price fluctuations
Take Profit
- Use the opposite Envelopes band as a first target
- Apply a risk-to-reward ratio of at least 1:2
- Trail the stop loss along the Kijun Sen in strong trends
Practical Tips
- Avoid trading when Envelopes are flat or tightly compressed
- Use recent price swings to fine-tune stop loss placement
MT4 Swing Strategy Using Kijun-Sen and Envelopes + XP Moving Average
This MT4 swing trading strategy combines the Kijun-Sen and Envelopes Forex Indicator with the XP Moving Average Indicator.
The strategy is designed to help traders identify clear trend directions and precise entry points for swing trades.
It works well on higher time frames such as H1, H4, and Daily, making it suitable for traders who prefer holding positions for several hours to a few days.
By combining trend detection with entry confirmation, this strategy reduces the risk of false signals and enhances the probability of profitable trades.
Buy Entry Rules
- Ensure the Envelopes indicator is sloping upwards, signaling a bullish trend.
- Confirm that the XP Moving Average line turns green, indicating a buy signal.
- Enter a buy trade at the close of the confirmation candle.
- Set the stop loss just below the most recent swing low to protect against reversals.
- Set the take profit at a level 1.5 to 2 times the stop loss distance or near the next significant resistance level.
Sell Entry Rules
- Ensure the Envelopes indicator is sloping downwards, signaling a bearish trend.
- Confirm that the XP Moving Average line turns red, indicating a sell signal.
- Enter a sell trade at the close of the confirmation candle.
- Set the stop loss just above the most recent swing high to minimize risk.
- Set the take profit at a level 1.5 to 2 times the stop loss distance or near the next significant support level.
Advantages
- Combines trend-following and confirmation signals to improve accuracy.
- Reduces the likelihood of entering trades during market noise.
- Works on multiple time frames, offering flexibility for different trading styles.
- Easy to understand and implement, even for beginner traders.
- Clear rules for stop loss and take profit help manage risk effectively.
Drawbacks
- Less effective in choppy or sideways markets where trends are weak.
- Requires patience, as swing trades may take hours or days to reach targets.
- It can sometimes generate late entries if the trend develops slowly.
- Performance may vary across different currency pairs and market conditions.
Case Study 1: EUR/USD Swing Trade
On a 4-hour chart, the Envelopes indicator started sloping upwards, indicating a bullish trend.
The XP Moving Average line turned green at 1.1020, signaling a buy.
A buy trade was opened at the close of the confirmation candle.
The stop loss was set at 1.0980 below the recent swing low, and the take profit was set at 1.1100, providing a 1:2 risk-to-reward ratio.
The trade reached the take profit level after three days, capturing 80 pips.
Case Study 2: GBP/JPY Swing Trade
On a daily chart, the Envelopes indicator sloped downwards, showing a bearish trend.
The XP Moving Average line turned red at 175.50, confirming a sell signal.
A sell trade was opened with a stop loss at 176.20 above the recent swing high and a take profit at 174.80 near the next support zone.
The trade reached the target in four days, resulting in 70 pips of profit.
Strategy Tips
- Use higher time frames for trend detection and lower time frames for fine-tuning entries.
- Avoid trading during major news releases, as volatility can trigger stop losses prematurely.
- Monitor multiple currency pairs and focus on those showing clear trends for higher probability setups.
- Adjust take profit levels based on recent support and resistance areas for better risk management.
- Consider using a trailing stop once the trade moves in your favor to lock in profits while allowing the trend to continue.
Download Now
Download the “Kijun_Sen_and_Envelope.mq4” indicator for Metatrader 4
FAQ
Which timeframes are best for this indicator?
The indicator works best on M15, H1, and H4 charts where trends are more stable and pullbacks respect the Kijun Sen more consistently.
Is this indicator suitable for fast scalping?
It can be applied to lower timeframes, but it performs better in intraday and swing trading where trends have enough range to develop.
Summary
The Kijun Sen and Envelopes Forex Indicator for MT4 offers a disciplined way to trade with trend direction while avoiding late or emotional entries.
By focusing on price balance and directional bias, traders can approach the market with greater consistency.
The indicator is easy to apply, flexible across markets, and effective for both entries and exits.
