Ichimoku Kinko Hyo is a technical indicator invented and published by the Japanese for more than 30 years. It’s a tool to measure momentum and project future support and resistance.
First of all, the Japanese word “Ichimoku” means “one glance”, “Kinko” means “balance / equilibrium and “Hyo” means “chart”, in short Ichimoku Kinko means to see the equilibrium at a glance. Basically, the indicator is best used to define market trend, support and resistance and finally generate buy/sell signals.
Ichimoku Kinko Hyo consists of 5 lines and a “Kumo” or known as “cloud” as most people call it. Whilst Ichimoku Kinko Hyo utilizes five separate lines, they shall not to be used independently but rather to use them together to form a comprehensive view of the price action in order to formulate trading strategies. After studying these indicators, one should be able to understand market sentiment, momentum and relative strength of a trend “at a glance”.
By studying each of the five components that make up Ichimoku Kinko Hyo, one shall be able to have a clear perspective of the relative equilibrium of the market as these lines can reflect market force, the balance between buyers and sellers.
The five lines of Ichimoku Kinko Hyo are:
- Tenkan-Sen (Conversion Line)
- Kijun-Sen (Base Line)
- Senkou Span A
- Senkou Span B
- Chikou Span (Lagging Span)
For detailed explanation of them, please check out our ebook, “Ichimoku Analysis for Forex Beginners”.
In this ebook, we’ll discuss some advanced trading strategies, including Kijun- Sen cross, Senkou Span cross and Chikou Span cross signals.
We will also discuss where to put entry level, exit level and stop-loss. Then we will put recent real life examples to elaborate individual signal.
II: KIJUN-SEN CROSS
III: SENKOU SPAN CROSS
IV: CHIKOU SPAN CROSS
V: TRADING WITH THE CLOUD / KUMO