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The Ichimoku-Kinko-Hyo Indicator and the ADX-Wilder oscillator are a pairing that could be used in complimentarily within an MQL5 Expert Advisor. The Ichimoku is multi-faceted, however for this article, we are relying on it primarily for its ability to define support and resistance levels. Meanwhile, we also use the ADX to define our trend. As usual, we use the MQL5 wizard to build and test any potential these two may possess.

By definition, the Ichimoku is a comprehensive indicator that brings together several elements to assess trend direction, momentum and S/R. An indicator whose name translates to all-in-one system, it seeks to give a holistic view of price action and is often used for trend following strategies. It constitutes five buffers. The Tenkan-sen, the Kijun-sen, Senkou-Span-A, Senkou-Span-B, and finally the Chikou-Span. In addition to these buffers, a Kumo-Cloud is also often referred to, being constituted of the two Senkou-Spans A and B. Prima-face, this cloud can serve as an S/R marker and also a metric of trend strength depending on its thickness.

The inputs required to calculate all its five buffers are three, and they are typically assigned 9, 26, and 52. On paper, these values can be customized for various markets, but one is probably better off leaving these periods as is and looking to adjust other attributes of his system. With this indicator, a multitude of signals can be inferred and these include crossovers of the Tenkan with Kijun as well as Chikou confirmations, as we’ll see below. The Ichimoku is thus versatile and can be applied to a variety of assets from stocks and forex up to crypto on a variety of timeframes.


Author: Stephen Njuki

 
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