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The Ichimoku Kinko Hyo which is sometimes called Ichimoku is a technical analysis method that builds on candlestick charting thus improving on the accuracy of forecast price moves. The method was developed in the 1930s by Goichi Hosoda, a Japanese journalist. He worked on the method for about 30 years and released his findings to the general public in the late 1960s.
The Elements of the Ichimoku Kinko Hyo
1. Kijun Sen(Blue Line)- This is the standard line/ base line which is obtained as the average of the highest high and lowest low of the past 26 periods
2. Tenkan Sen(Orange Line) - Also known as the turning line and its an average of the highest high and lowest low of the past nine periods
3. Chikou Span(Purple line) - This is the lagging line and it’s the current closing price plotted 26 period behind.
4. Senkou Span- It comprise of two lines; the first senkou line(A) which is the average of the tenkan sen and the kijun sen which is plotted 26 periods ahead and the second senkou line(B) which is the average of the highest high and lowest low for the past 52 periods and plotted 26 periods ahead. Enclosed between the senkou A and B is cloud.
Chart Setup
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al_dcdemo avatar
al_dcdemo 17 Nov.

Excellent work!

black_box_xx avatar

great job)

rashadali avatar
rashadali 21 Nov.

interesting approach 

JuliannaS avatar
JuliannaS 22 Nov.

When I read I understand , but when try to do ,I forget all

yellownight avatar

good  job

orto leave comments
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: 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 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.

orto leave comments