• Ichimoku Kinko Hyo
  • Calculation
  • Signals

Ichimoku Kinko Hyo

  • The Ichimoku Kinko Hyo was developed by Goichi Hosoda
  • He offered it to the public when he published his book in 1969
  • Defines supports and resistances, identifies trend direction, reflects momentum, and provides trading signals
  • Ichimoku translates as “a glance” or “one look”
  • Kinko Hyo translates as “the table of equilibrium” or “balance table”
  • The Ichimoku Kinko Hyo was developed by Goichi Hosoda
  • He offered it to the public when he published his book in 1969
  • Defines supports and resistances, identifies trend direction, reflects momentum, and provides trading signals
  • Ichimoku translates as “a glance” or “one look”
  • Kinko Hyo translates as “the table of equilibrium” or “balance table”

Ichimoku Kinko Hyo Plots

  • Tenkan-sen uses a default of 9 periods
  • The highest highs and lowest lows are the highest and lowest values of the specified number of time periods
  • Kijun-sen uses a default period of 26
  • Plotted 26 periods in the future and their difference forms the Kumo (cloud)
  • Senkou Span A forms the faster cloud boundary
  • Senkou Span B forms the slower cloud boundary
  • The fifth plot is the Chikou Span which has a default period of 26 and is simply the current close plotted 26 periods in the past
  • Tenkan-sen
  • Kijun-sen
  • Senkou Span A
  • Senkou Span B
  • Chikou Span

Kumo - Interpretation

  • Senkou Span A vs Senkou Span B
  • The area between the two Spans is the Kumo
  • Trend is down when prices are below the cloud
  • Trend is neutral when prices are inside the cloud
  • Trend is up when prices are above the cloud
  • Colour of the cloud indicates trend strength
  • The downtrend accelerates when Span A falls below Span B
  • This situation produces a red cloud
  • The uptrend strengthens when Senkou Span A, crosses above Senkou Span B
  • This situation produces a green cloud

Tenkan-sen/Kijun-sen - Interpretation

  • Tenkan-sen vs Kijun-sen
  • A bearish signal is generated when Tenkan-sen crosses below Kijun-sen
  • A bullish signal is generated whenTenkan-sen crosses above Kijun-sen
  • Tenkan-sen and Kijun-sen can also be used as supports and resistances

Chikou Span - Interpretation

  • Chikou Span vs Close
  • When the Chikou Span is below the prices, the trend is considered to be Bearish
  • When the Chikou Span is above the prices, the trend is considered to be Bullish
  • Many traders use the crossover with the price as a buy or sell signal

Ichimoku Kinko Hyo - Conclusion

  • Movements above or below the cloud define the overall direction
  • Within the trend, the cloud changes colour as the trend ebbs and flows
  • Crossover of Tenkan-Sen and Kijun-Sen generates signals
  • Movements above or below the Chikou Span can be used to generate signals
  • All 5 plots of the Ichimoku Kinko Hyo can be used as supports and resistances