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Ichimoku Kinko Hyo

Definition

Ichimoku Kinko Hyo usually just called ichimoku is a technical analysis method that builds on candlestick charting to improve the accuracy of forecast price moves. It was developed in the late 1930s by, a Japanese journalist who used to be known as Ichimoku Sanjin, which can be translated as "what a man in the mountain sees". He spent 30 years perfecting the technique before releasing his findings to the general public in the late 1960s.

What is 'Ichimoku Kinko Hyo'

A technical indicator that is used to gauge momentum along with future areas of support and resistance. The Ichimoku indicator is comprised of five lines called the tenkan-sen, kijun-sen, senkou span A, senkou span B and chickou span. This indicator was developed so that a trader can gauge an asset's trend, momentum and support and resistance points without the need of any other technical indicator.

Explaining 'Ichimoku Kinko Hyo'

"Ichimoku" is a Japanese word that means "one look." This charting technique was created by a Japanese newspaper writer. It does look very complicated when a trader sees the indicator for the first time, but don't hesitate to give this indicator a try because the complexity quickly disappears once you gain an understanding of what the various lines mean and why they are used.


Further Reading




Q&A About Ichimoku Kinko Hyo


What is Ichimoku Kinko Hyo?

Ichimoku Kinko Hyo is a technical indicator that gauges momentum along with future areas of support and resistance.

Why does it look complicated when you first see it?

It looks complicated because there are many lines on the chart. However, once you understand what each line represents and how to use them properly, then the complexity disappears.

Where did this indicator come from?

This indicator was developed by a Japanese newspaper writer.

What are the five lines used in this indicator called?

The tenkan-sen, kijun-sen, senkou span A, senkou span B and chickou span.

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