Ichimoku Kinko Hyo: The Complete System

The Five Lines

Developed by Goichi Hosoda over 30 years. Ichimoku means "one look" — see everything at a glance.

1. Tenkan-sen (Conversion Line) — 9-period midpoint of high/low. Fastest.
2. Kijun-sen (Base Line) — 26-period midpoint. Slower baseline.
3. Senkou Span A (Leading A) — Average of Tenkan + Kijun, plotted 26 periods ahead.
4. Senkou Span B (Leading B) — 52-period midpoint, plotted 26 periods ahead.
5. Chikou Span (Lagging) — Close plotted 26 periods behind.

The Cloud (Kumo)

The area between Senkou A and B forms the cloud:

• Green cloud: A > B → bullish bias.
• Red cloud: A < B → bearish bias.
• Price above cloud = uptrend. Price below cloud = downtrend. Inside cloud = no trade.
• Thick cloud = strong support/resistance.

Signals

• TK Cross: Tenkan crossing Kijun (like MACD).
• Chikou confirmation: Lagging span above price 26 bars ago = bullish.
• Cloud breakout: Price closing outside the cloud confirms trend.

Why It Works

Ichimoku combines multiple timeframes and displays them all on one chart — momentum, trend, and support/resistance without cluttering with 5 separate indicators.