Question 1

What is Ichimoku?

Accepted Answer

Ichimoku Kinko Hyo ("one-glance equilibrium chart"), developed by Goichi Hosoda, is a comprehensive indicator system that defines support/resistance, trend direction, momentum, and trading signals — all from a single chart overlay. It consists of five lines and a shaded "cloud" region.

Question 2

How it works

Accepted Answer

``` Tenkan-sen (Conversion) = (Highest High(9) + Lowest Low(9)) / 2 Kijun-sen (Base) = (Highest High(26) + Lowest Low(26)) / 2 Senkou A (Leading A) = (Tenkan + Kijun) / 2, plotted 26 bars ahead Senkou B (Leading B) = (Highest High(52) + Lowest Low(52)) / 2, plotted 26 bars ahead Chikou (Lagging) = Close plotted 26 bars behind ``` The area between Senkou A and Senkou B forms the "cloud" (Kumo).

Question 3

Key features

Accepted Answer

- **All-in-one** — trend, support/resistance, momentum, and signals from a single indicator. - **Cloud (Kumo)** — provides future support/resistance zones. - **Five lines** — each captures a different time dimension. - **Works best on daily charts** — originally designed for Japanese stock market daily data.

Question 4

Trend direction

Accepted Answer

- Price above the cloud — bullish. - Price inside the cloud — neutral/indecision. - Price below the cloud — bearish.

Question 5

Cloud color

Accepted Answer

- Senkou A above Senkou B — bullish cloud (often green). - Senkou B above Senkou A — bearish cloud (often red).

Question 6

TK Cross

Accepted Answer

- Tenkan crosses above Kijun — bullish (stronger if above cloud). - Tenkan crosses below Kijun — bearish (stronger if below cloud).

Question 7

Chikou confirmation

Accepted Answer

- Chikou above price 26 bars ago — confirms bullish signal.

Question 8

Parameters

Accepted Answer

| Parameter | Default | Description | |-----------|---------|-------------| | Tenkan | 9 | Conversion line period | | Kijun | 26 | Base line period | | Senkou B | 52 | Leading Span B period |

Question 9

Example conditions

Accepted Answer

| Condition | Meaning | |-----------|---------| | `close > ICHIMOKU(9)` | Price above Tenkan-sen (Conversion line) | | `ICHIMOKU(9) cross_over ICHIMOKU(26)` | TK Cross — Tenkan crosses Kijun upward | | `close > ICHIMOKU(52)` | Price above Senkou B level — above the cloud |

Question 10

Tips

Accepted Answer

- Ichimoku is most reliable on daily and weekly charts — avoid using on very short timeframes. - The thicker the cloud, the stronger the support/resistance. - A "Kumo twist" (cloud color change) often precedes a trend reversal. - Wait for all five lines to align for the strongest signals. - Ichimoku was designed for Japanese equities but works well on forex and crypto too.