Ichimoku Kinko Hyo

What Does Ichimoku Kinko Hyo Mean?

Ichimoku Kinko Hyo is a technical indicator that is used to gauge momentum along with future areas of support and resistance. The Ichimoku indicator is comprised of five lines called the tenkan-sen, kijun-sen, senkou span A, senkou span B and chickou span. This indicator was developed so that a trader can gauge an asset's trend, momentum and support and resistance points without the need of any other technical indicator.

"Ichimoku" is a Japanese word that means "one look". This charting technique was created by a Japanese newspaper writer. It does look very complicated when a trader sees the indicator for the first time, but don't hesitate to give this indicator a try because the complexity quickly disappears once you gain an understanding of what the various lines mean and why they are used.

Constructing an Ichimoku Chart

First, let's take a look at an Ichimoku chart so we have a visual point of reference.

EUR/USD Ichimoku Chart

Let's see what these lines represent, and how they are plotted:

1. Tenkan-Sen - (red)
2. Kijun-Sen - (maroon)
3. Chikou Span - (pink)
4. Senkou Span A - (green)
5. Senkou Span B - (blue)

The Kumo  ( known as the "cloud") is the space between Senkou Span A and Senkou Span B. The time period is most often measured in days; however, this can be modified to be any time unit as long as it is consistent throughout all calculations.

Follow the links to learn more about Ichimoku Kinko Hyo:

• An Introduction to Ichimoku
  
  • Quick Description
  • History
  • Equilibrium "At a Glance"
  • Ichimoku Components
  • Ichimoku Settings
• The Five Lines of Ichimoku
  
  • The Tenkan Sen
  • The Kijun Sen
  • The Chikou Span
  • The Senkou Span A
  • The Senkou Span B
• The Kumo
  
  • The Basics
  • A Better Measure of Support and Resistance
  • Price's Relationship to the Kumo
  • Kumo Depth
  • Kumo Sentiment
  • Flat Top/Bottom Kumos
• How To Trade Using  Ichimoku
  
  • Trend Trading
  • A Glance at an Equilibrium Chart
  • Ichimoku Cloud Filters Information Storm
  • Trade Using Ichimoku Kinko Hyo
• Ichimoku Trading Strategies
  
  • Tenkan Sen/Kijun Sen Cross
  • Kijun Sen Cross
  • Kumo Breakout
  • Senkou Span Cross
  • Chikou Span Cross
• Ichimoku Kinko Hyo Video
• Ichimoku Indicator (for MT4)

Good luck and Happy trading.