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Ichimoku Kinko Hyo

Explanation

Ichimoku is a complete technical analysis system that provides information about trend, momentum, and support/resistance in a single glance.

Used to identify trend direction, key support/resistance levels, and generate trading signals.

Parameters

Tenkan-sen (Conversion Line) 9
Kijun-sen (Base Line) 26
Senkou Span B (Leading Span B) 52
Chikou Span (Lagging Span) 26

Trading Signals

Buy Signal

Price above cloud + Tenkan crosses Kijun upward + Chikou > Past price

Sell Signal

Price below cloud + Tenkan crosses Kijun downward + Chikou < Past price

Cloud

Green cloud (Senkou A > B) = Bullish trend, Red cloud = Bearish trend

Master Ichimoku - The One Glance Cloud

Understanding the 5 Components

Ichimoku is a complete Japanese system created in the 1930s. It's THE only indicator that shows EVERYTHING at a glance: trend, momentum, dynamic support/resistance, and entry/exit signals. Complex at first but INCREDIBLY powerful once mastered!

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All-in-One

Tenkan (9), Kijun (26), Senkou A & B (Cloud), Chikou (lag 26). You have EVERYTHING on a single chart: trend, momentum, dynamic support/resistance, confirmation. Stop juggling between 10 different indicators! Ichimoku = The trader's Swiss Army knife.

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Predictive

The cloud is projected 26 periods INTO THE FUTURE! You see where support/resistance will be BEFORE price gets there. It's like having a roadmap of the market. Nobody else can do that!

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Dynamic S/R

Forget frozen horizontal lines. The Ichimoku cloud MOVES with price, adapts to volatility, thickens in strong trends and tightens before breakouts. Smart S/R that breathes with the market.

Cloud Thickness = Trend Strength

THICK cloud (wide) = VERY STRONG trend, hard to break. Powerful Support/Resistance. THIN cloud (narrow) = WEAK trend, imminent breakout. When cloud tightens = Prepare for breakout! It's a signal of coming volatility.

The 5 Components - Complete Breakdown
Complete Ichimoku Chart - The 5 Components

Interactive chart with ALL Ichimoku indicators - Tenkan, Kijun, Senkou A & B (Cloud), Chikou

Tenkan-sen (Conversion Line) -
Kijun-sen (Base Line) -
Senkou Span A (Leading Span A) -
Senkou Span B (Leading Span B) -
Chikou Span (Lagging Span) -
Tenkan-sen & Kijun-sen

Tenkan (Red) : FAST Line (9 periods) - Reacts quickly to changes

Kijun (Blue) : SLOW Line (26 periods) - Main trend + Dynamic S/R

The Kumo (The Cloud)

🟢 Above the cloud : Strong BULLISH signal

⚠️ Inside the cloud : INDECISION zone

🔴 Below the cloud : Strong BEARISH signal

The Chikou Span

💡 Confirmation line : Current price shifted 26 periods BACK.

ABOVE past price = Confirms bullish signal | BELOW = Confirms bearish signal

Tenkan-sen (Conversion Line) - Period 9

Formula : (Highest 9 + Lowest 9) ÷ 2

Role : Measures SHORT TERM momentum. It's the "fast line". When Tenkan rises = bullish momentum. When it falls = bearish momentum. Serves as early signal.

Kijun-sen (Base Line) - Period 26

Formula : (Highest 26 + Lowest 26) ÷ 2

Role : Indicates MEDIUM TERM trend. It's the "slow line". Price above = bullish trend. Price below = bearish trend. Also acts as VERY POWERFUL dynamic Support/Resistance.

Senkou Span A (First Cloud Line) - Projected +26

Formula : (Tenkan + Kijun) ÷ 2, projected 26 periods AHEAD

Role : Forms the FAST EDGE of the cloud. More reactive to price changes. When Senkou A > Senkou B = GREEN cloud (bullish). When Senkou A < Senkou B = RED cloud (bearish).

Senkou Span B (Second Cloud Line) - Projected +26

Formula : (Highest 52 + Lowest 52) ÷ 2, projected 26 periods AHEAD

Role : Forms the SLOW EDGE of the cloud. Based on 52 periods = more stable. Represents LONG TERM support/resistance. The cloud between A and B = price conflict zone.

Chikou Span (Lagging Line) - Shifted -26

Formula : Current CLOSING price, displayed 26 periods BACK

Role : Compares CURRENT price to PAST price. If Chikou > past price = bullish momentum. If Chikou < past price = bearish momentum. ESSENTIAL trend confirmation. NEVER trade against Chikou!

☁️ THE KUMO (Cloud) - The Centerpiece

The cloud = space between Senkou A and Senkou B. It's the BATTLE zone between buyers and sellers projected 26 periods ahead! GREEN cloud (A > B) = Bullish trend. RED cloud (A < B) = Bearish trend. Cloud thickness = trend strength. Thick cloud = STRONG trend. Thin cloud = weak trend, breakout imminent.

The 7 Ichimoku Strategies
① TK Cross (Tenkan/Kijun Cross) - The Simplest

Buy Signal : Tenkan crosses Kijun UPWARD

Sell Signal : Tenkan crosses Kijun DOWNWARD

💡 Tip : Like Golden/Death Cross of EMAs but faster. Better if cross occurs ABOVE cloud (buy) or BELOW cloud (sell). Avoid crosses INSIDE cloud = confusion zone.

② Kijun Bounce - Bounce on Base Line

Buy Signal : In uptrend, price touches Kijun and BOUNCES upward

Sell Signal : In downtrend, price touches Kijun and BOUNCES downward

💡 Tip : Kijun acts like a MAGNET. Price regularly returns to test it. High probability setup if Kijun is FLAT (consolidation over). If Kijun angled = strong trend ongoing.

③ Kumo Breakout - Cassure du Nuage

Buy Signal : Price breaks ABOVE cloud + CLOSE confirmed

Sell Signal : Price breaks BELOW cloud + CLOSE confirmed

💡 Tip : MAJOR SIGNAL! Trend change confirmed. The THINNER the cloud, the easier and faster the breakout. Thick cloud = strong resistance, powerful breakout if successful. 70-80% of prices retest cloud after breakout.

④ Kumo Twist - Cloud Twist (PREDICTIVE!)

Buy Signal : FUTURE cloud changes from RED to GREEN (Senkou A crosses Senkou B upward)

Sell Signal : FUTURE cloud changes from GREEN to RED (Senkou A crosses Senkou B downward)

💡 Tip : ANTICIPATED setup! Twist visible 26 periods in ADVANCE. You see change coming before everyone. Powerful combined with TK Cross. Twist + TK Cross = GOLDEN Signal!

⑤ Chikou Confirmation - La Validation Ultime

Buy Signal : Chikou above past price + Chikou above past cloud

Sell Signal : Chikou below past price + Chikou below past cloud

💡 Tip : Chikou is the ULTIMATE FILTER. Use it to CONFIRM other Ichimoku signals. TK Cross signal but opposite Chikou? DON'T TRADE. Golden rule: Chikou must ALWAYS be in trade direction.

★ ⑥ PERFECT SETUP - Les 5 Conditions (90%+ Réussite)

Pour un ACHAT Parfait, IL FAUT:

  1. ✅ Price ABOVE cloud
  2. ✅ GREEN cloud (Senkou A > Senkou B)
  3. ✅ Tenkan above Kijun
  4. ✅ Chikou above past price
  5. ✅ Chikou above past cloud

🎯 Description : When all 5 conditions are met = ULTRA STRONG trend confirmed on ALL timeframes. It's the most reliable Ichimoku setup. Success rate 85-95%. Don't expect this setup every day, but when it appears = ALL IN with confidence!

⑦ Kumo Shadow - Trading in Cloud (Advanced)

Buy Signal : Price INSIDE cloud + Bounce on Senkou B (lower edge) + Tenkan rising

Sell Signal : Price INSIDE cloud + Rejection on Senkou A (upper edge) + Tenkan falling

⚠️ Never INSIDE the Cloud : RISKY setup for experienced traders only! Cloud = confusion zone, price can go any direction. Use TIGHT stops. Scalping only. Beginners: AVOID trades in cloud!

Advanced Ichimoku Mastery
Cloud Thickness = Trend Strength

THICK cloud (wide) = VERY STRONG trend, hard to break. Powerful Support/Resistance. THIN cloud (narrow) = WEAK trend, imminent breakout. When cloud tightens = Prepare for breakout! It's a signal of coming volatility.

FLAT Kijun = GOLDEN Setup

When Kijun becomes HORIZONTAL = Market exits consolidation and seeks direction. If Tenkan crosses flat Kijun = ULTRA POWERFUL signal! It's the start of new movement. Flat Kijun + TK Cross = 80%+ success rate.

Multi-Timeframe Analysis

Use Ichimoku on MULTIPLE timeframes: Daily for overall trend, 4H for momentum, 1H for precise entry. If Perfect Setup on Daily AND 4H simultaneously = TRADE OF THE YEAR! Never trade against Daily Ichimoku.

Read the Future Cloud

Cloud projected 26 periods ahead shows FUTURE support/resistance! Look where price is heading: toward thick cloud = expected slowdown. Toward thin cloud = easy breakout. Use it to anticipate your Take Profits!

Common Ichimoku Mistakes
❌ Trading every Tenkan/Kijun cross

Only trade TK crosses ABOVE cloud (for buys) or BELOW cloud (for sells). Crosses inside cloud = choppy, no clear trend. Wait for price to be outside cloud!

❌ Ignoring the Chikou Span

Chikou is the MOST important confirmation! If Chikou can't break above price from 26 bars ago, the trend is weak. Always check Chikou before entering!

❌ Using Ichimoku in ranging markets

Ichimoku is a TREND system. In sideways markets, it gives constant false signals. Use it only when there's a clear trend. Otherwise, switch to Bollinger or RSI!

❌ Impatience in flat markets

When all lines are tangled = WAIT. Ichimoku shines in trending markets. Don't force trades in choppy conditions.

Powerful Ichimoku Combos
🎯 TK Cross + Kumo Twist

Tenkan crosses Kijun + Future cloud changes color simultaneously = GOLDEN COMBO! Double confirmation: short-term momentum + long-term anticipation. 85%+ success rate. Enter with confidence!

🎯 Kumo Breakout + Retest

Price breaks cloud + Returns to test it + Bounces = PERFECT SETUP! Like S/R retest. Cloud becomes support after bullish breakout. Precise entry, tight stop under cloud. Excellent R:R 1:5+.

🎯 Ichimoku + RSI (Filter)

Only take bullish Ichimoku signals when RSI > 50, bearish when RSI < 50. This filters out weak signals and keeps you with momentum. Powerful combination!

🎯 Ichimoku + Volume (Confirmation)

Price breaks cloud with huge volume = strongest signal. Volume confirms the cloud breakout is real, not a fake-out. Always check volume on cloud breaks!

Quick Reading Guide - "At a Glance"
✅ STRONG BULLISH TREND: :

Price > Green cloud • Tenkan > Kijun • Kijun sloping upward • Chikou > Past price • Chikou > Past cloud

❌ STRONG BEARISH TREND: :

Price < Red cloud • Tenkan < Kijun • Kijun sloping downward • Chikou < Past price • Chikou < Past cloud

⚠️ CONFUSION ZONE (DON'T TRADE): :

CONFUSION ZONE (DON'T TRADE):

ICHIMOKU GOLDEN RULE

☁️ NEVER TRADE INSIDE THE CLOUD. Wait for price to exit CLEARLY. Chikou is your ABSOLUTE FILTER - never trade against it. Perfect Setup happens 5-10 times/year maximum - when it appears, JUMP ON IT with conviction! Ichimoku shows you EVERYTHING at a glance: trend (cloud), momentum (TK), confirmation (Chikou), and even the FUTURE (cloud projection). It's the most complete system that exists. Master it = you master trading!

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Cloud Decides

Price > Cloud = Buy | Price < Cloud = Sell

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Never INSIDE Cloud

Confusion zone = 70% failure

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Chikou = Ultimate Filter

Always trade with Chikou

Perfect Setup = Rare

5-10x/year - Seize it!