Kijun Tenkan Trend Forex Trading Strategy

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Kijun Tenkan Trend Forex Trading Strategy

Even blind squirrels can find a nut. Everyone can make money from the forex market from time to time. Even the worst traders could have some winning trades whenever they get lucky. However, this is not what we want. What we want is a consistency. We would want to earn profits from the market on a month to month basis.

So, how do we do this. We trade on the blind squirrel’s market. These are markets wherein it is easy to find high probability trades, even a newbie trader could see clearly where price is heading.

Trending market conditions is what we could consider as the blind squirrel’s market. Price is clearly heading one direction and if you trade in that direction, you would have a high chance of earning a profit.

However, you would still need a sound trend following strategy to trade in such conditions. The Kijun Tenkan Trend Forex Trading Strategy is a good strategy to use during such conditions. It detects long-term trends and trades whenever the short-term trend aligns with the long-term trend tilting the odds in your favor.

Kijun Tenkan Indicator

The Kijun Tenkan indicator is derived from the popular Ichimoku Kinko Hyo indicator. In fact, the Kijun and Tenkan lines are components of the Ichimoku Kinko Hyo indicator.

The Ichimoku Kinko Hyo is one of the few indicators that has been proven with back testing to return profits in the long run even as a standalone indicator. The crossover of the Tenkan and Kijun lines is the main trade signal of the Ichimoku Kinko Hyo system.

The Kijun-sen or Base Line is a mid-term trend line. The Kijun-sen is the median price of the last 26 periods. Because it is computed based on the median, the Kijun-sen is characterized by a jagged moving line which is very responsive to price changes. This makes the Kijun-sen an effective short- to mid-term trend indicator.

The Tenkan-sen or Conversion Line on the other hand is the short-term trend line of the Ichimoku Kinko Hyo system. It is computed as the median of the past nine periods. Like the Kijun-sen, the Tenkan-sen is also very responsive to price changes.

Trade signals are generated whenever the two lines crossover. The market is considered to be bullish on the short-term whenever the Tenkan-sen crosses above the Kijun-sen, and bearish whenever the Tenkan-sen crosses below the Kijun-sen.

Trading Strategy

To trade this strategy effectively, the trade signals coming from the Kijun-sen and Tenkan-sen crossover should be aligned with the long-term trend.

We will be using the 200-period Exponential Moving Average (EMA) to identify the long-term trend. Trend direction is identified based on where price is located in relation to the 200 EMA line. The 200 EMA line should also be sloping in the direction of the trend to confirm that a trend is in place.

Then, we wait for price to retrace towards the 200 EMA line causing the Kijun-sen and Tenkan-sen line to temporarily reverse.

Trades are then taken whenever the Tenkan-sen and Kijun-sen lines crossover aligning with the direction of the long-term trend.

Indicators:

  • 200 EMA (Gold)
  • KijunTenkan+ (default setting)

Preferred Time Frames: 1-hour and 4-hour charts

Currency Pairs: major and minor pairs

Trading Sessions: Tokyo, London and New York sessions

Buy Trade Setup

Entry

  • Price should be above the 200 EMA line.
  • The 200 EMA line should be sloping up.
  • Price action should indicate a bullish trend.
  • Price should retrace towards the 200 EMA line causing the Tenkan-sen and Kijun-sen line to temporarily reverse.
  • The Tenkan-sen (red) should cross above the Kijun-sen (blue) indicating the resumption of the bullish trend.
  • Enter a buy order on the confirmation of these conditions.

Stop Loss

  • Set the stop loss on the fractal below the entry candle.

Exit

  • Close the trade as soon as price closes below the Kijun-sen line.

Kijun Tenkan Trend Forex Trading Strategy

Kijun Tenkan Trend Forex Trading Strategy 2

Sell Trade Setup

Entry

  • Price should be below the 200 EMA line.
  • The 200 EMA line should be sloping down.
  • Price action should indicate a bearish trend.
  • Price should retrace towards the 200 EMA line causing the Tenkan-sen and Kijun-sen line to temporarily reverse.
  • The Tenkan-sen (red) should cross below the Kijun-sen (blue) indicating the resumption of the bearish trend.
  • Enter a sell order on the confirmation of these conditions.

Stop Loss

  • Set the stop loss on the fractal above the entry candle.

Exit

  • Close the trade as soon as price closes above the Kijun-sen line.

Kijun Tenkan Trend Forex Trading Strategy 3

Kijun Tenkan Trend Forex Trading Strategy 4

Conclusion on the Kijun Tenkan Trend Forex Trading Strategy

This simple crossover strategy using the Kijun-sen and Tenkan-sen line is a very effective trading strategy. This is because the Ichimoku Kinko Hyo indicator is already a profitable indicator which revolves around the Tenkan-sen and Kijun-sen crossover.

By focusing on the Tenkan-sen and Kijun-sen, traders get more trade setups that could produce profits. However, traders should still align trades with the long-term trend in order to filter out low probability trade setups.

The key to trading this strategy is in finding a market that is trending on the long-term. As soon as you find one, then you could apply this strategy with the confidence that you are trading a high probability trade setup.


Forex Trading Strategies Installation Instructions

Kijun Tenkan Trend Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator(s) and template.

The essence of this forex strategy is to transform the accumulated history data and trading signals.

Kijun Tenkan Trend Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust this strategy accordingly.

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How to install Kijun Tenkan Trend Forex Trading Strategy?

  • Download Kijun Tenkan Trend Forex Trading Strategy.zip
  • *Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
  • Copy tpl file (Template) to your Metatrader Directory / templates /
  • Start or restart your Metatrader Client
  • Select Chart and Timeframe where you want to test your forex strategy
  • Right click on your trading chart and hover on “Template”
  • Move right to select Kijun Tenkan Trend Forex Trading Strategy
  • You will see Kijun Tenkan Trend Forex Trading Strategy is available on your Chart

*Note: Not all forex strategies come with mq4/ex4 files. Some templates are already integrated with the MT4 Indicators from the MetaTrader Platform.

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