Indicator | Technique
Ichimoku Kinko Hyo
"A complete Japanese technical analysis system offering at a glance the trend, momentum, support, and resistance of an asset."
In-Depth Definition
Ichimoku Kinko Hyo ('equilibrium at a glance') is a technical analysis system developed by Japanese journalist Goichi Hosoda in the 1930s-60s. It consists of five lines: Tenkan-sen (conversion line, 9 periods), Kijun-sen (base line, 26 periods), Senkou Span A (Tenkan/Kijun average, projected 26 periods forward), Senkou Span B (52-period average, projected forward), and Chikou Span (closing price shifted 26 periods back). The space between Senkou A and B forms the 'Kumo' (cloud), the system's central element. Price above the Kumo signals an uptrend; below signals a downtrend. Cloud thickness represents support/resistance strength. Tenkan/Kijun crossovers generate entry signals (TK Cross). Validation by Chikou and Kumo creates high-probability complete setups.
StarQuant Insight
StarQuant can analyze all Ichimoku components across multiple timeframes simultaneously and identify maximum confluence setups (TK Cross + price above Kumo + free Chikou), which are statistically the most reliable signals of the system.
Pro Tip
Ichimoku is most effective on daily and weekly timeframes. The Kumo Twist (future Senkou A/B crossover) is an advanced leading signal of trend change to watch closely.