In the late 1930s, Goichi Hosoda, a Japanese journalist, known as Ichimoku Sanjin (“what a man in the mountain sees” in translation) created Ichimoku Kinko Hyo. If we are to translate Ichimoku Kinko Hyo, we will get “a glance at an equilibrium chart”
It has 5 Components:
1. Kijun Sen (brown line): (Highest High + Lowest Low) / 2 over the past 26 periods.
2. Tenkan Sen (blue line): Tenkan-Sen (Conversion Line) = (Highest High + Lowest Low) / 2 over the past 9 periods.
3. Chikou Span (purple line): Present trading days closing price plotted 26 periods behind.
4. Senkou SpanA (green line): (Tenkan-Sen + Kijun-Sen) / 2, plotted 26 periods in the future.
5. Senkou SpanB (red line): (Highest High + Lowest Low) / 2 over the past 52 periods, but plotted 26 periods in the future
Why The Ichimoku Matters? Ichimoku is an ideal visual representation of key data, based on the historical data of moving averages. Ichimoku can be used in all time frames for any tradeable asset. Ichimoku can be used in both rising and falling markets
Trading Methods by the ICHIMOKU MTF PRO Indicator: