Kijun sen Envelope Indicator For MT4
Table Of Contents:
- Kijun sen Envelope Indicator For MT4
- Benefits derived from using the Kijun sen Envelope Indicator For Meta Trader 4
The Kijun sen Envelope Indicator For Meta Trader 4 is a super stable Ichimoku based indicator that enables the trader to spot key trend changes on the Daily timeframe in all currency pairs and trading assets. It allows the trader to be able to spot these key changes in realtime as they happen and offer re-entry opportunities to traders based on these key trends. There is a whole bundle of benefits for those who decide to use this indicator.
Benefits derived from using the Kijun sen Envelope Indicator For Meta Trader 4
One of the first major benefits to be derived by the trader from using this indicator is that the indicator is super accurate and reliable. These benefits are things that need to be stressed as much as possible as there are very few indicators among all the meta trader 4 indicators that are at all stable or that a trader can confidently rely on. There are a couple of reasons why this indicator is regarded as super stable and reliable.
The first reason for this assertion is that the indicator is built on the Ichimoku indicator. The Ichimoku has been used for a long time among traders so it is quite a fact that the Ichimoku indicator is one of the most stable indicators that exist.
Since the Kijun sen Envelope Indicator For Meta Trader 4 is an offspring of the Ichimoku indicator, it has gained some of the strengths of the Ichimoku like its ability to be relied on and also the accuracy of its signals. This brings us to the second reason why this indicator is very stable and reliable.
The indicator only works off the Daily timeframe by default. It was actually built that way to enable traders to capitalize on the very strong and accurate moves generated by this indicator in framing their lower timeframe decisions. Hence, the indicator works excellently well on the Daily timeframe and can guide traders who look to it for guidance and trend line direction.
Another one of the advantages of using this indicator is that it offers traders amazing opportunities to re-enter a trending market even if the trader previously missed the trend entry. The Kijun sen Envelope Indicator For Meta Trader 4 does this by creating an area where the trader can buy or sell bounces off its middle line when the price has been in a trend for a while.
This means that once a new trend has started, say an uptrend, for example, the price breaks above the middle line of the Kijun sen Envelope Indicator For Meta Trader 4 and can clearly be seen to be trending up. At this point, the indicator automatically identifies levels where the price would likely come back to for a bounce before it continues in the direction of the trend.
It is at such areas, that traders can buy into the already existing uptrend with the minimum amount of risk on the trade. Thus, the indicator helps traders to re-join an already existing trend. These kinds of moves can also be improved by the trader if he draws a simple trend line across the tops or bottoms of price in the direction he or she expects a price breakout to likely occur.
Also, the best timeframe to use the Kijun sen Envelope Indicator For Meta Trader 4 would be the Daily timeframes as it has already been customized for that timeframe in particular. This means that by default, the indicator already comes with settings that are perfect for keeping the indicator functioning optimally on any Daily timeframe of any charts. The trader can, however, readjust the indicator for lower timeframes but this is most likely to affect the quality of signals to be produced by the indicator as it is designed specifically for the Daily timeframes and hence the very accurate and reliable signals it produces on such Daily timeframes.
The Kijun sen Envelope Indicator For Meta Trader 4 comes with 3 different signal lines. The first one is the upper band which is almost always above price, the second one is the lower band, which is almost always below the price. The third signal line is the Kijun-Sen and this acts as the signal line when a new trend is about to start and a trend line when a price is currently in an uptrend or downtrend.
One way to participate in a new trend would be to spot when there has been an obvious change in direction and then wait for the new trend on the Daily time frame to break above the indicator's middle line.
Once the indicator breaks above the indicator's middle line, a trader should either buy or sell accordingly. The trader can easily join a trend this way. Another way to join a trend is to look for times when the price has obviously broken above or beneath the middle line of the Kijun sen Envelope Indicator For Meta Trader 4 and then wait for the price to start to retrace back to the middle line of the indicator against the direction of the new trend. The trader can then buy or sell accordingly as soon the price touches the middle line of the indicator from above or beneath. This would also be a very good time for the trader to participate in a trend.
Lastly, one major thing to watch for when using the Kijun sen Envelope Indicator For Meta Trader 4 is when the size of the channel becomes very slim and close together with both of them pointing in a single direction. This is very important because this only happens when a big move is about to happen or is currently happening. This means that once a trader using this indicator realizes that both of the bands are close together and pointing in one direction, either up or down, the trader should then be bold enough to either buy or sell accordingly as it only happens when there is a very strong mover happening in price.