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6/44
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1. Introduction

Last month for the article contest I published an article giving an introduction to the Ichimoku Kinko Hyo (Ichimoku) indicator, it was a beginner’s introduction as I am a beginner with the Ichimoku. Since then I have had some time to experiment with the Ichimoku learning what does and does not work when using it to place trades.
This article will better explain the components of the Ichimoku and offer insight into how to identify and place trades accurately and safely. Keep in mind that some parts may be reiterated from my previous article.
2. Teachings of the Ichimoku
2.1 Teachings of the Tenkan-Sen

The Tenkan-Sen referred to as the conversion line, is calculated using the midpoint of the highest high and the lowest low over 9 periods.
Figure 1. Ichimoku, Tenkan-Sen on NZD/JPY 1 Day Chart
In Figure 1 I have removed all lines except for the Tenkan-Sen. On its own the Tenkan-Sen can show momentum, we can see it steeply curving upwards on NZD/JPY which shows significant bullish momentum, if the momentum was bearish it would curve downwards and if there was indecision in the market it would become flat.
2.2. Teachings of the Kijun-Sen
The Kijun-Sen referred to as …
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Vlad73 avatar
Vlad73 28 June

well done

Aviator avatar
Aviator 29 June

good job

Anton_Bustrov avatar

good work

drferre avatar
drferre 30 June

well done! good strategy

Wovch avatar
Wovch 20 July

good job

orto leave comments
13/54
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Introduction
The Ichimoku Kinko Hyo (meaning ‘’One look equilibrium chart’&rsquo otherwise known as the Ichimoku Cloud or simply just Ichimoku is an incredibly versatile indicator that in the right hands can provide a trader with support and resistance, trend direction, momentum and even trading signals. This indicator is the most popular indicator among Japanese Traders of all markets and was created by Journalist Goichi Hosoda in 1968 then published in his book in 1969, however he reportedly first began creating this indicator in the late 1930’s.
While this indicator is overwhelming at first, after reading this article you will gain a basic understanding of how the indicator works and how to make basic use of it.
What It All Means
Figure 1. Standard 9/26/52 Ichimoku indicator on NZD/JPY 4-hour chart.
Chikou Span (Pink line)
The Chikou Span or lagging span, is the current price shifted to the left by 26 periods, this is default but can be altered for different strategies and/or preferences.
Tenkan-Sen (Orange line)
The Tenkan-Sen referred to as the conversion line, is calculated using the midpoint of the highest high and the lowest low over 9 periods. The Tenkan-Sen is used wi…
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Nomi avatar
Nomi 8 June

good luck

NikaTigra avatar

good luck

Slurmp avatar
Slurmp 9 June

Thank you all for the support! Much love :) check out my new article https://www.dukascopy.com/fxcomm/fx-article-contest/?Teachings-Of-The-Ichimoku-Kinko&action=read&id=3913

Wovch avatar
Wovch 10 June

good work

Vlad73 avatar
Vlad73 12 June

very good

orto leave comments
32/56
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The name Ichimoku Kinko Hyo, which translates to "Equilibrium chart at a glance" aptly, describes the system.

Ichimoku Kinko Hyo has been used extensively in Asian trading rooms since Hosoda published his book and has been used successfully to trade currencies, commodities, futures, and stocks. Even with such wild popularity in Asia, Ichimoku did not make its appearance in the West until the 1990s and then, due to the utter lack of information in English on how to use it, it was mostly relegated to the category of another "exotic" indicator by the general trading public. Only now, in the early 21st century, are western traders really beginning to understand the power of this charting system. How it is to be used, as described below:
  • While Ichimoku utilizes five separate lines or components, they are not to be used individually, in isolation, when making trading decisions, but rather used together to form an integrated "whole" picture of price action that can be gleaned "at a glance". Thus, a simple look at an Ichimoku chart should provide the Ichimoku practitioner with a nearly immediate understanding of sentiment, momentum and strength of trend.
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GUANYINDIZI avatar

wow, huge topic, write some more plz

klintons avatar
klintons 21 Oct.

Very well

priceaction113 avatar

good article regarding  Ichimoku

k_morocco avatar
k_morocco 26 Oct.

thanks u a lot , great presentation

FXProsperHub avatar

My pleasure :)... if you need guys to develop strategy for JForex let me know. I can help :)

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3/66
Ranking

The yen is being traded with an unfavourable volatility. This is due to the negativity of the interest rate. Nikkei 225 index has fallen from 19,033 points at the beginning of the year till 15,960 points at the end of February. The recent sell off in equities is lightening that recent BOJ measures are short-lived, pointing out into further intervention.
Japan’s economy shrank 0.4% quarter on quarter in the last three months of 2015, dragged down by a fall in consumers spending and housing investment, failing 0.3% GDP (QoQ) shrinkage forecasted by analysts.
Reporting Mario Blascak and Matus Mader [1],
With the Japanese yen breaking to multi-year highs, the likelihood of further monetary stimulus from the Bank of
Japan (BoJ) rises.

Kuroda’s efforts enhanced in 2013 with a massive Q.Q.E. program to combat the 15-year long era of deflation are not providing the results yet predicted.
The recent downtrend in yen vs other major currencies is unwelcome, as it tightens the competiveness of Japan’s exports. It also pressures the unwanted Japanese imports purchase power, which unweighs in BOJ’s 2% targeted inflation.
Markets are questioning the effectiveness of negative interest rates to lift [/1]…
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Sveetlana avatar
Sveetlana 19 Mar.

Very good article. Good luck!

EliasOmar avatar
EliasOmar 22 Mar.

great article .. keep going

angelina_may avatar

i like it)

rajib217 avatar
rajib217 25 Mar.

Nice Article

Olkiss70 avatar
Olkiss70 31 Mar.

excellent article!

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28/43
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Hi Dukascopy Community !
How to my TA system give signal buy or sell.
The indicators used : ZigZag(12,5,3), MA(89), Ichimoku, Fibonacci Retracement.
Graphics used : 1H-4H-D-W chart. (good use for all TF)
Based on the last basic ZigZag chart (current trend), if it appears 1 or 2 consecutive candle connection into a bridge connecting from Fibo level 0% or 23.6% to 61.8% levels, reverse direction with the last trend, then the signal is (also known as H2 candles) Once there were candles H2 and the likely trend of the current zigzag has ended, and the market preparing to draw a new, backwards direction with zigzag current, correct probability is very high when combined with some indicator.
A number of conventions in the signal system H2 :
-Candles feedback called candles H2
-Candles H2 called bullish when it over both Kumo and MA
-Candles H2 called bearish when it under both Kumo and MA
Principles on the buy order when there is enough elements:
-Have the candles H2
-H2 over both Kumo and MA
Principles in order sell when there are enough elements:
-Have the candles H2
-H2 under both Kumo and MA
Good price Order Entry at Fibo 50% to 61.8%, SL Fibo 0%, TP Fibo 161.8%(exactly 90% hit), TP F…
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Airmike avatar
Airmike 8 Oct.

very short article

ijayakumar avatar
ijayakumar 27 Oct.

Bit more in-depth view would have helped even better. Anyways good!

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23/58
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Yes, you’re still in the right place. You’re still in the School of Pipsology and not in some Japanese pop fan girl site (although Huck may disagree with the rest of the FX-Men on that). No, “Ichimoku Kinko Hyo” ain’t Japanese for “May the pips be with you.” but it can help you grab those pips nonetheless.
Ichimoku Kinko Hyo (IKH) is an indicator that gauges future price momentum and determines future areas of support and resistance. Now that’s 3-in-1 for y’all! Also know that this indicator is mainly used on JPY pairs.
To add to your Japanese vocab, the word ichimoku translates to “a glance”, kinko means “equilibrium”, while hyo is Japanese for “chart.” Putting that all together, the phrase ichimoku kinko hyo stands for “a glance at a chart in equilibrium.” Huh, what does all that mean?
A chart might make things easier to explain…
Whoops. That didn’t help. A few more lines and this’ll resemble a seismograph.
Before you go off and call this gibberish, let’s try to find out what each of the lines is for.
Kijun Sen (blue line): Also called standard line or base line, this is calculated by averaging the highest high and the lowest low for the past 26 periods.
Tenkan Sen (red line): Th…
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14/45
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Over one year ago I started with Ichimoku, I spent a lot of hours before I understood it correctly. I took a while but finally It becomes a profitable system. In this article in simple words I will describe how ichimoku works and how it can be used in trading.
Ichimoku is complex strategy invited by Goichi Hosoda. Complex means that it can be use alone without any others indicator. Ichimoku is a trend following strategy, that means that it won’t catch tops and bottoms but it tells us that we are in trend (Not in a correction). This strategy also show exact entry and exit poins! We have few techniques. (I will describe all of them).
To be honest, it is not Holy Grail as false signals happend but I’ll describe how they can be minimalized.
Lets go to the point:
Ichimoku has five lines:

1. Tenkan Sen
2. Kijun Sen
3. Chikou Span
4. Senkou Span A
5. Senkou Span B
I will add line by line and explain them:
1. Tenkan Sen (formula (HH+LL)/2 from last two periods).
For us it is very important line, we open positions only in accordance with this line!
2. Kijun Sen (formula (HH + LL)/2 from last 26 periods)
Second important line, signals I will describe later but this line can be use also as …
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Milian avatar
Milian 27 Feb.

good job!

Angelwales avatar
Angelwales 27 Feb.

super good!

MURO avatar
MURO 27 Feb.

Magnifico planteamiento. Felicidades PITER44

talamanzana avatar

Hi Piter, can you explain me better how you keep the position i mean how you exit from the trade? What do you mean when you say, (if bar close at the second side). Thank you

talamanzana avatar

hi

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14/39
Ranking
Ichimoku Kinko Hyo is one of the most overlooked and misunderstood indicators in the western world. Many people believe that is too complex and therefore turn to traditional oscillators and indicators like RSI, CCI etc. At first it looks intimidating due to the number of lines on the chart, but if anyone dedicates some time to study it, he will find that it is actually quite simple and that it can be an almost perfect tool for trading in any time-frame. These series of articles will try to make traders familiar with Ichimoku and hopefully help them to be successful in one the most exciting, but difficult professions in the world. What is Ichimoku Kinko Hyo? Ichimoku was created by Goichi Hosoda in Japan almost a century ago. It is a trend and breakout indicator that besides identifying when to open a position, it also shows support and resistance levels. This is how it looks when plotted on a chart, (if the images do not show right please use the zoom option of your browser)It looks complex and later in the series there will be a full explanation of the indicator together with trend and breakout strategies. This part focuses on breakout, intraday trading using just the Cloud (Sen…
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Likerty avatar
Likerty 29 Sep.

Congrats with your first article! Thus I hope to see more original insights from new writers about the markets, than yet another single indicator analysis... After more than a year in article contest its becoming really boring seeing same views about indicators or traders psichology again and again...

michaliero avatar

It looks quite interesting and insping...

orto leave comments
11/35
Ranking
Trading in the clouds I was trading for one and a half years now. It was a quiet day, after a lot of drama because of the Japanese earthquake, the markets were breathing a little. I was stuck in a lot of positions, in all kind of unmoving markets, and even in 3 days strategies. Because time was good to me, it seemed that is passing harder than usual, I started testing everything that I had on my charts platform. I should say that I did not believe in technical analysis, I thought that is useful just for the analysts to motivate their salaries. I have this word “ Don’t look too much to the back, you will not know what is in front of you and you might hit something”. So I was making a short story from what happened, and plan more than enough. In that day, scrolling down in the 100 analyses long list, the name Ichimoku Kinkō Hyō came out. Curiosity made its move, I asked my boss from back then. So he answered like always: search it on investopedia! Great advice, better than telling me nonsense. So, I did. The main reason of getting interested in it was that I knew that the Japanese products are good, like the candlesticks, everyone was using them, and they were really helpful…
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Armands avatar
Armands 30 Jan.

Very good article. Some time ago I tried to trade based on Ichimoku . I tried all, then I got stuck to JPY crosses only, but I guess that it doesn't work as it is said in books. You have to find something unique. Now I use it sometimes for confirmation only in addition to price action.

charmtrader avatar

thx Armands

SpecialFX avatar
SpecialFX 30 Jan.

When I used to have indicators on my charts I'd always have the default settings, because that's what most traders use, so it ends up being a self-fulfilling prophecy. That's why the 200MA, for example, is such a powerful MA, because many traders watch it and "respect it", not because it has some kind of magical powers per se. However, I do understand your logic for using shorter periods these days, it makes sense :)

OneGoodTrade avatar

The story is very well written, an interesting read and a great introduction to Ichimoku. "Statistical probability" ...when I did read this words my mind was suddenly waken up. Thank for the article and webinar.

SpecialFX avatar
SpecialFX 31 Jan.

I just remembered another question I used to have about Ichimoku...I know that this indicator is supposed to be used alone, but has anyone tried to add something else to the chart? I was thinking of ADX, to confirm how strong the trend is, would that make sense or end up being redundant?...

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27/43
Ranking
Introduction Earlier this month I introduced the Ichimoku charting system, defining the components of the system. I also eluded to a simple strategy that utilises all these components – the teken sen/kijun sen cross. This simple strategy can be used in all time-frames, although I normally use this setup for swing trading. In response to a comment on this article, I would like to introduce another strategy that is more ideal for those of you who are more interested in day trading – the kijun sen setup. In this article, I will describe this setup in detail. I advise you to read the previous article posted earlier this month if you either do not understand the main components of Ichimoku, or just need a refresher of the overall system. It can be found here: http://www.dukascopy.com/fxcomm/fx-article-contest/?Ichimoku-Trading-An-Introduction-With&action=read&id=1100The Kijun Sen Cross for Day Trading For this setup, I normally use two timeframes, 5 min and 30 min. The strategy can be summarised as follows: In both timeframes, wait for a candle to cross the kijun sen. Once a candle completes over the kijun sen in the lower timeframe, place an order using the kijun sen +/- 10 pips as a b…
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auto1 avatar
auto1 11 Dec.

Very well defined and explained. Nice strategy

auto1 avatar
auto1 11 Dec.

For day trading in 5m ,Is the cloud condition same as discussed in your earlier article?

Lottithecat avatar

Good point: for this particular strategy, no, you just follow the actual cross, regardless of where it is. This means you can get more trades in per day, but you will have more trades stopping out early. You can refine this strategy by only trading above the cloud for bullish trades, and below the cloud for bearish trades to increase the probability of getting a winning trade, but the number of trades you make will decrease substantially. If however, you look at multiple low spread currencies at the same time, then refining the above using the kumo makes it a very powerful strategy indeed.

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7/43
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Introduction Ichimoku Kinko Hyo (commonly just shortened to Ichimoku) is a Japanese charting system created in the 1930’s by Goichi Hosoda. It is commonly used to assist in entry and exit points in trending markets, is popular in Japan, and recent years has gained popularity in the west. You may have heard of this charting system, given it a quick try, or maybe you’re a seasoned pro at using it! In any case, this article will briefly introduce the system for using Ichimoku in a FOREX setting and demonstrate a quick and easy strategy to follow. Pertinent features of Ichimoku will be discussed and throughout the month, I will use this strategy to demonstrate prospectively how this strategy can be used and I intend to write a follow-up article to critique this trading system using this simple setup.Components of the system These are as followsTekan sen – (highest hi + lowest low)/2 for the past 9 periods.Kijun sen – (highest hi + lowest low)/2 for the past 26 periods.Chikou span – current price moved back 26 periods.Senko span A – (Tekan Sen + Kijun Sen)/2 moved forward 26 periods.Senko span B – (Tekan Sen + Kijun Sen)/2 for the past 52 periods moved forward 26 periods.Kumo (“cloud&rd…
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auto1 avatar
auto1 4 Dec.

Nice strategy, What time frame do you recommend for day trading purpose, Take profit and and stop loss may also be explained please.

Lottithecat avatar

For day trading, I would use 5 minutes, while keeping an eye on a higher time frame (e.g. 1 hour).

Stop loss is normally at the kijun sen. Some advocate a "buffer" below the kijun sen (I would use the equivalent of the ATR) just to make sure you don't get stopped out before a major trend develops for a typical positional or swing trade. You normally take profits at the point where the cross is reversed. This will inevitably mean that you will lose some pips at the end of the trade, but at least you can be sure the trend has changed.

Lottithecat avatar

Next week, I'll follow up this article with one dedicated to the specifics of day trading, as the comments box is not really suited for that purpose. I normally use this particular strategy for swing trading, and I have used this setup for day trading successfully too. However, if you want to reduce drawdown, and squeeze more trades in, there is another setup, the kijun sen setup, that you can use to reduce your capital exposure. I'll explain more next week!

Lordy_zita avatar

Well explained, well summarized. +1

Likerty avatar
Likerty 7 Dec.

I used ichimoku cloud some time ago too.. Thats a strange indicator - have its own magic in some way..:))

orto leave comments
35/68
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So many opinion that long term is the best
trading, maybe it’s right but maybe it’s wrong for using Meta 5, why ? because
if in Meta 4 goes up/ down 1 point, in Meta 5 will be 10 points, very lots of, and with Ichimoku, and in my opinion for the short term is the best one
from the other indicators, and this Writing I will explain, and I hope all
Readers can enjoy it    
Introduction
Ichimoku
Kinko Hyo (一目均衡表 Ichimoku Kinkō Hyō) usually just called ichimoku is a technical analysis
method that builds on CANDLESTICK charting
to improve the accuracy of forecasted price moves. It was developed in the
late 1930s by Goichi
Hosoda (細田悟一 Hosoda Goichi), a Japanese journalist who used to be
known as Ichimoku Sanjin, which can be translated as "What a man in the
mountain sees".
Ichimoku Kinko Hyo translates to 'one glance
equilibrium chart' or 'instant look at the balance chart' and is sometimes
referred to as 'one glance cloud chart' based on the unique 'clouds' that
feature in ichimoku charting.
 
ELEMENTS OF ICHIMOKU
 .
Definition
1
1.     Tenkan-sen (Red) 
By default the line is calculated on a 9-period basis, using the
highest and lowest prices in this period.
The formula is: (highest
p…
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belman avatar
belman 15 Apr.

good luck +1

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