Ichimoku Multi-Time Frame Alert is a very unique trading tool because there are many data points. It is more colorful and has more lines than the standard indicators. It is similar to the traditional Ichimoku indicator, but it allows you to view the status of multiple frames at once.
The indicator is of Japanese origin and contains five elements. tenkan sen and kijun-sen. It is not easy to remember the names, let alone understand their functions.
Unless you are really interested, you don’t have to explore the details of their formation. It is enough to know what to look for in a buy or sell signal. If you pay close attention, the Ichimoku MTF Indicator can greatly improve your trading results. It can be used to trade any instrument at any time.
How to use Ichimoku Multi-Time Zone Indicator
Let’s look at the five components and see how the indicator works.
Tenkan Sen refers to the average of the highest and lowest highs and lows of nine periods. It is also known as the fast line and is cyan in color. It indicates whether the market trend is up or down.
Kijun Sen represents the average of the highest and lowest highs and lows of the last 26 periods. It is similar to Tenkan, but it moves slower and is therefore called slow or lagging. This line is suitable for tracking losses.
Chikou Span – This is the closing price 26 days ago. It is dark orange in color.
Kumo – The shaded space between Senkou A and B, and the most important element. It indicates support and resistance levels, as well as their possible future.
Buy Signal Ichimoku Multi-Time Frame Alert Indicator
The Ichimoku MTF Alert Indicator will give a buy signal when the Tenkan-sen is in an uptrend. The price should be at or above Kijun Sen, however, the Chikou span should not cross the price from below.
A sell signal is when the Tenkan-Sen is going through a downtrend and the price falls below the Kijun Sen.
If the price is above the Kumo cloud, span A or B is the support level. If the price is below the cloud, these lines act as resistance levels. If the price is not below the cloud level, these two lines act as support and resistance levels.
Tenka Sen (green) indicates a bullish market. The price is also above the Kijun Sen, or magenta line. The dark orange color is moving up and penetrating the price from below. As a resistance level, Kijun is surrounded by red and green lines. This indicator indicates a buy signal and is suitable for entering a long position.
Summing up
Ichimoku is one of the most accurate forex trading indicators. To allow you to see general market behavior in a single time frame, the Ichimoku MTF Alerts indicator has been enhanced with a multi-time frame feature. Ichimoku MTF Alerts can be used as a standalone tool.
