Ichimoku Cloud is a free MT4 indicator that’s considered a trend directional Forex indicator that works out of the box for any trader.
The indicator gets displayed on the chart in the form of a buy and sell colored trend-following cloud.
Buying and selling currency pairs with this indicator is a straightforward task.
Key Takeaways:
- An orange colored Ichimoku cloud suggests a rising market.
- A blue colored Ichimoku cloud suggests a declining market.
The indicator works on all trading instruments (Forex, CFD stocks, Indices, Cryptocurrencies, Commodities,..).
Free Download
Download the “Ichimoku.ex4” indicator for MT4
Indicator Chart (EUR/USD Daily)
How to trade with it (example)?
Open a buy trade as soon as the candlestick crosses the Ichimoku cloud bottom-up.
Open a sell trade as soon as the candlestick crosses the Ichimoku cloud top-down.
Utilize your own trading strategy to take profit with this indicator.
Indicator Specifications
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Input Parameters: Tenkan, Kijun, Senkou, color settings & style
Indicator type: trend
Repaint? Does not repaint the Ichimoku cloud.
Ichimoku + The Secret TR MT4 Scalping Strategy
This scalping strategy uses the Ichimoku Forex Indicator for MT4 together with the The Secret TR Forex Signal Indicator for MT4.
The aim is to capture short-term price moves with high probability by combining trend direction from Ichimoku with precise buy and sell signals from the Secret TR histogram.
This combination allows traders to enter trades quickly during intraday sessions while avoiding counter-trend setups.
The Ichimoku indicator highlights bullish momentum with an orange cloud and bearish momentum with a blue cloud.
The Secret TR Forex Signal Indicator displays a blue histogram for buy signals and a red histogram for sell signals.
By entering trades only when both indicators align, traders can increase the accuracy of short-term scalping setups.
This strategy is best applied on M5 and M15 charts and works well on major forex pairs such as EURUSD, GBPUSD, and USDJPY.
It is suitable for traders who prefer fast trades with defined entry and exit rules and want to capitalize on short intraday trends.
Buy Entry Rules
- Wait for the Ichimoku cloud to turn orange, indicating bullish momentum.
- Confirm that the Secret TR histogram is blue, signaling a buy opportunity.
- Enter a buy trade at the open of the next candle after both conditions are met.
- Place a stop loss below the most recent swing low or below the Ichimoku cloud.
- Set take profit at 1.5 to 2 times the stop loss distance or exit when the Ichimoku cloud turns blue.
Sell Entry Rules
- Wait for the Ichimoku cloud to turn blue, indicating bearish momentum.
- Confirm that the Secret TR histogram is red, signaling a sell opportunity.
- Enter a sell trade at the open of the next candle after both conditions are met.
- Place a stop loss above the most recent swing high or above the Ichimoku cloud.
- Set take profit at 1.5 to 2 times the stop loss distance or exit when the Ichimoku cloud turns orange.
Advantages
- Combines trend confirmation and signal timing for accurate scalping entries.
- Quick visual signals make it easy to spot trades in real time.
- Works well on short timeframes for intraday opportunities.
- Reduces false signals by requiring alignment between two indicators.
- Can be applied to multiple currency pairs.
Drawbacks
- May produce late signals during extremely volatile conditions.
- Less effective in sideways or choppy markets.
- Requires discipline to exit trades when the trend changes.
- Scalping demands focus and quick reaction time.
- Stop loss and take profit placement are crucial for consistent results.
Example Case Study 1
On the EURUSD M5 chart, the Ichimoku cloud turned orange while the Secret TR histogram showed blue.
A buy entry was triggered at 1.1052 with a stop loss at 1.1045.
The trade captured 12 pips within 20 minutes before the Ichimoku cloud started turning blue, signaling an exit.
This trade demonstrates the accuracy of combining trend and histogram confirmation for quick intraday gains.
Example Case Study 2
On GBPUSD M15, the Ichimoku cloud turned blue while the Secret TR histogram showed red.
A sell trade was entered at 1.2820 with a stop loss at 1.2830.
The price fell to the target for a 20-pip profit within 35 minutes.
The setup clearly illustrates how alignment between trend and histogram increases the probability of a successful scalping trade.
Strategy Tips
- Focus on M5 and M15 charts for fast scalping opportunities.
- Trade only when both Ichimoku and Secret TR align to reduce false signals.
- Avoid trading during major news releases or low liquidity periods.
- Use a trailing stop if the trade moves strongly in your favor to secure profits.
- Backtest the strategy on multiple pairs to adjust settings for optimal performance.
