stephenleachman
Education

ICHIMOKU KINKO HYO (THE BEST TREND INDICATOR)

FX:EURNZD   Euro / New Zealand Dollar
13275 views
92
13275 15
Ichimoku Kinko Hyo “one look equilibrium chart” In my personal opinion is the best all in one indicator, it defines support and resistance , identifies trend direction, gauges momentum and provides trading signals. The best part about ichimoku is not only that it gives you a directional bias "at one glance" but also it provides trading signals. These signals can be used by themselves or together and are very powerful. There are 5 signals and are as followed:
Bullish Signals:
  • Kijun-Sen Cross - A bullish signal occurs when the price crosses from below to above the Kijun Sen. A weak bullish signal occurs when the cross is below the Kumo. A neutral bullish signal occurs when the cross is inside the Kumo. A strong bullish signal occurs when the cross is above the Kumo.
  • Tenkan-Sen / Kijun Sen Cross ( TK Cross) - A bullish signal occurs when the Tenkan Sen crosses from below to above the Kijun Sen. A weak bullish signal occurs when the cross is below the Kumo. A neutral bullish signal occurs when the cross is inside the Kumo. A strong bullish signal occurs when the cross is above the Kumo.
  • Senkou-Span Cross (Kumo Twist) - A bullish signal occurs when the Senkou Span A crosses from below to above the Senkou Span B. A weak bullish signal occurs if the current price is below the Kumo. A neutral bullish signal occurs if the current price is inside the Kumo. A strong bullish signal occurs if the current price is above the Kumo.
  • Chikou-Span Cross - A bullish signal occurs when the Chikou Span rises from below to above the price. A weak bullish signal occurs if the current price is below the Kumo. A neutral bullish signal occurs if the current price is inside the Kumo. A strong bullish signal occurs if the current price is above the Kumo.
  • Kumo Breakout - A bullish signal occurs when the price goes upwards through the top of the Kumo.
Bearish Signals:
  • Kijun-Sen Cross - A bearish signal occurs when the price crosses from above to below the Kijun Sen. A weak bearish signal occurs when the cross is above the Kumo. A neutral bearish signal occurs when the cross is inside the Kumo. A strong bearish signal occurs when the cross is below the Kumo.
  • Tenkan-Sen / Kijun Sen Cross ( TK Cross) - A bearish signal occurs when the Tenkan Sen crosses from above to below the Kijun Sen. A weak bearish signal occurs when the cross is above the Kumo. A neutral bearish signal occurs when the cross is inside the Kumo. A strong bearish signal occurs when the cross is below the Kumo.
  • Senkou-Span Cross (Kumo Twist) - A bearish signal occurs when the Senkou Span A crosses from above to below the Senkou Span B. A weak bearish signal occurs if the current price is above the Kumo. A neutral bearish signal occurs if the current price is inside the Kumo. A strong bearish signal occurs if the current price is below the Kumo.
  • Chikou-Span Cross - A bearish signal occurs when the Chikou Span falls from above to below the price. A weak bearish signal occurs if the current price is above the Kumo. A neutral bearish signal occurs if the current price is inside the Kumo. A strong bearish signal occurs if the current price is below the Kumo.
  • Kumo Breakout - A bearish signal occurs when the price goes downwards through the bottom of the Kumo.
Also all 5 lines can be used to provides levels of support and resistance . Note the Kijun-sen can be the strongest level of support or resistance, it is the equilibrium level and as the market gets over extended price will eventually return to Kijun-sen (equilibrium). Chikou-span prints itself in the past, by using its pivots will also provide strong levels of support and resistance . This illustration is based on the conventional way of trading the ichimoku . The settings can be configured to better fit the market, however I mainly use the default settings. My preferred time frame with ichimoku is on the 30 min, 1 hour, 4 hour and daily charts .
Comment: Remember there is a strong bullish trend when price is above the Kumo cloud and above Tenkan-Sen and Kijun-Sen. Also Senkou-Span is above and out of price. There is a strong bearish trend when price is below Kumo cloud and below Tenkan-Sen and Kijun-Sen. Also Senkou-Span is below and out of price.
Comment: Ichimoku History - It was developed in the late 1930s by Goichi Hosoda a Japanese journalist who used to be known as Ichimoku Sanjin, which can be translated as "what a man in the mountain sees" He spent 30 years perfecting the technique before releasing his findings to the general public in the late 1960s. (History from wikipedia)
I'm an ichimoku trader bro! cheers for the best charting system out there
Reply
Thank you, this could be a useful tool to verify what I believe will occur in price. It will take some time to get used to though.
Reply
Very good, inspired by your explanation I was able to create a robot on metatrader 5 based on the traded signals you described, and, surprisingsly, it made something about 300% profit since 2016 trading Mini Ibovespa index futures on daily chart, expectacular!
Reply
HichamBenkaihoul Luciano45911
@Luciano45911, AMAZING. Congrats :) ... What do you think about smaller time-frames (M5 and M15). Does the indicator also applicable for them?
+1 Reply
Luciano45911 HichamBenkaihoul
@HichamBenkaihoul, Hi, it will depend on the trend market force and the asset you are applying. This indicator works only on a clearly trend market.
Reply
Mubashar7311 Luciano45911
Hi
Can you share me the robot and settings.
My email is fbs7311@gmail.com
Reply
excellent
Reply
Very handy cheat-sheet, thank you

Recently started to learn about this indicator and I am fascinated by it.
Reply
Excellent, Thank you for sharing.
Reply
Thank you so much for your explanation. You make everything so easy to follow. Thanks
Reply
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out