Introduction

You can trade for a living.Really. You can. The question people ask me most often is, not surprisingly, “Can I be successful at this?” Mostly, they ask me the question after a devastating loss. It’s...

Chikou Span Cross

For those that have been using the Ichimoku Kinko Hyo charting system for any length of time, utilizing the chikou span cross strategy should be like second nature. Why? Because the chikou span cross...

Senkou Span Cross

The senkou span cross is one of the lesser known trading strategies within the Ichimoku Kinko Hyo system. This is mostly due to the fact that the senkou span cross tends to be more commonly used as an...

Kumo Breakout

Kumo Breakout trading or "Kumo Trading" is a trading strategy that can be used on multiple time frames, though it is most widely used on the higher time frames (e.g.: Daily, Weekly, Monthly) of the position...

Kijun Sen Cross

The kijun sen cross is one of the most powerful and reliable trading strategies within the Ichimoku Kinko Hyo system. It can be used on nearly all time frames with excellent results, though it will be...

Tenkan Sen / Kijun Sen Cross

The tenkan sen/kijun sen cross is one of the most traditional trading strategies within the Ichimoku Kinko Hyo system. The signal for this strategy is given when the tenkan sen crosses over the kijun...

Bollinger Band

Bollinger Bands are a tool of technical analysis which was invented by John Bollinger in the 1980s. Having evolved from the concept of trading bands, Bollinger Bands are an indicator that allows users...

Trade Using Ichimoku Kinko Hyo

The Ichimoku Kinko Hyo Japanese charting technique was developed before World War II with the aim of portraying - in a snapshot - where the price was heading and when was the right time to enter or exit...

Ichimoku Cloud Filters Information Storm

The Ichimoku Kinko Hyo or equilibrium chart isolate higher probability trades in the forex market. It is new to the mainstream, but has been rising incrementally in popularity among novice and...

A Glance at an Equilibrium Chart

First of all, the Japanese word "Ichimoku" means "one glance", "Kinko" means "balance / equilibrium and "Hyo" means "chart", in short Ichimoku Kinko Hyo means to see the equilibrium at a glance. Basically,...

Trend Trading

Definition "Trend following is an investment strategy that takes advantage of long-term moves that play out in various markets... Traders who use this approach can use current market price calculation, moving averages and channel breakouts to determine the general direction of the market and to generate...

Flat Top/Bottom Kumos

The flat top or bottom that is often observed in the kumo is key to understanding one piece of the kumo's "equilibrium equation". Just like the "rubber band effect" that a flat kijun sen can exert on...

Kumo Sentiment

In addition to providing a view of sentiment vis-a-vis its relationship with price, the kumo itself also has its own "internal" sentiment or bias. This makes sense when we consider that the kumo is made...

Kumo Depth

As you will see upon studying an Ichimoku chart, the kumo's depth or thickness can vary drastically. The depth of the kumo is an indication of market volatility, with a thicker kumo indicating higher...

Price's Relationship to the Kumo

In its most basic interpretation, when price is trading above the kumo, that is a bullish signal since it indicates current price is higher than the historical average. Likewise, if price is trading below the kumo, that indicates that bearish sentiment is stronger. If price is trading within the kumo,...

A Better Measure of Support and Resistance

As mentioned earlier, one of the kumo's most unique aspects is its ability to provide a more reliable view of support and resistance than that provided by other charting systems. Rather than providing...

The Basics

The kumo is the very "heart and soul" of the Ichimoku Kinko Hyo charting system. Perhaps the most immediately visible component of Ichimoku, the kumo ("cloud" in Japanese) enables one to immediately distinguish the prevailing "big picture" trend and price's relationship to that trend. The kumo is also...

Senkou Span B

The senkou span B is calculated in the following manner: SENKOU SPAN B ("2nd leading line") (HIGHEST HIGH + LOWEST LOW) /2 for the past 52 periods time-shifted forwards (into the future) 26 periods The senkou span B is best-known for its part, along with the senkou span A line, in forming the kumo,...

Senkou Span A

The senkou span A is calculated in the following manner: SENKOU SPAN A ("1st leading line") (TENKAN SEN + KIJUN SEN)/2 time-shifted forwards (into the future) 26 periods The senkou span A is best-known for its part, along with the senkou span B line, in forming the kumo, or "Ichimoku cloud" that...

Chikou Span

The chikou span is calculated in the following manner: CHIKOU SPAN ("lagging line") CURRENT CLOSING PRICE time-shifted backwards (into the past) 26 periods The chikou span represents one of Ichimoku's...

Kijun Sen

The kijun sen is calculated in the following manner: KIJUN SEN ("standard line") (HIGHEST HIGH + LOWEST LOW) /2 for the past 26 periods The kijun sen is one of the true "workhorses" of Ichimoku Kinko...

Tenkan Sen

The tenkan sen, as we have already mentioned in our Introduction section, is calculated in the following manner: TENKAN SEN ("turning line") (HIGHEST HIGH + LOWEST LOW) /2 for the past 9 periods While...