Kijun Sen and Envelopes is a free mt4 (Metatrader 4) Forex indicator that works on the Kijun trading method and can be used for both trade entry and exit.
The indicator draws the 3 Sen and Envelopes colored lines (green, blue and red) on the main MT4 chart.
The Kijun Sen and Envelopes indicator performs the best when combined with an existing trading strategy or system of your preference.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “Kijun_Sen_and_Envelope.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The example chart below displays the Kijun Sen and Envelopes mt4 indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method when trading with the Kijun Sen and Envelopes indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Kijun
Does the indicator repaint? No.
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.
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Download the “Kijun_Sen_and_Envelope.mq4” indicator for Metatrader 4
