Skip to content L'Ichimoku Kinko Hyo is an indicator renowned for its power and versatility. Professional traders use it daily to quickly visualize trends, support/resistance levels and swing entries (long-term investors). Whether you're a beginner or an intermediate trader, this tool will transform your technical analysis.
In this guide, you'll :
Understanding Ichimoku and its historical origins
Discover its five key components in detail
Learn how to use it on TradingView ,
Exploring Ichimoku strategies with Fibonacci retracements and money management
Take on an interactive challenge to put your knowledge into practice
Definition & Origin
LIchimoku Kinko Hyo is a Japanese technical analysis indicator that literally means "glance at balance". This name already reveals the tool's philosophy: to enable you to instantly grasp the state of balance or imbalance of a financial asset.
Goichi Hosodaa Japanese journalist with a passion for technical analysis, created it in the 1930s after years of research and testing. In fact, he used the pseudonym "Ichimoku Sanjin" to publish his work, which sometimes explains the confusion over the creator's identity. His aim was revolutionary for its time: to give you a quick, clear overview using a method - far more legible than most of the conventional indicators available at the time.
The Ichimoku Kinko Hyo is now used all over the world, in trading rooms and on all stock market assets: equities, indices, commodities, cryptocurrencies, and of course the Forex. This universality testifies to its robustness and adaptability.
Why choose Ichimoku for your trading?
Unlike technical indicators In contrast to traditional systems that focus on a specific aspect (momentum, trend, volatility), Ichimoku gives you a complete picture: trend, momentum, supports and resistances, consolidation zones - all integrated into a single, coherent system.
It's your tool for understanding the balance of power between buyers and sellers, without drowning in technical jargon. No need to multiply the indicators on your chart: the Ichimoku synthesizes the essential information.
The other major advantage? Its ability to project into the future. Unlike most indicators, which "lag" the price, certain Ichimoku components give you a forward-looking indication of future support and resistance levels, and that's often what we're looking for: to see the "future of the asset".
"Ichimoku Kinko Hyo - Bearish indications" designed by WDgraph.
These two lines Tenkan-sen and Kijun-sen are at the heart of the Ichimoku indicator and are your first visual cues.
Tenkan-sen line (conversion line): Based on a short timeframe, it reacts quickly to price changes. You can think of it as your short-term trading "pulse".
The Kijun-sen line (base line): This is slower and gives you the general trend. This is your reference level for assessing whether the price is in a bullish or bearish phase over the medium term.
Why is this important?
Their intersection often gives you reliable buy and sell signals, and helps you identify the strength or reversal of a trend. When the Tenkan Sen crosses above the Kijun-sen, it's usually a bullish signal. Conversely, when it falls below, it often indicates a downtrend ahead.
The famous Ichimoku cloud (or Kumo in Japanese) is undoubtedly the most recognizable element of this indicator. It consists of two lines projected 26 periods into the future:
Senkou Span A (Tenkan/Kijun average shifted into the future) This line reacts relatively quickly to trend changes.
Senkou Span B (average of last 52 periods) Since it is based on a longer period, Senkou Span B moves more slowly and gives an indication of the underlying trend.
The shape of the cloud (Kumo) evolves as the curves change Senkou Span A and Senkou Span BThis makes it possible to observe the effect of trend changes on the graphs. L'Ichimoku can be applied to all types of asset: equities, indices, cryptos, and to different types of chart, including Japanese candlesticks. Reading Ichimoku curves offers a global view of the market at a glance. Thanks to the effect of the cloud and other curves, Ichimoku provides valuable information on trends, prices and buy or sell signals. Technical analysis with Ichimoku relies on the use of several tools and techniques, and the way signals are interpreted depends on the unit of time and number of periods chosen. The numbers used in the settings (e.g. 9, 26, 52) are fundamental to the structure of the Ichimoku system.
The cloud shows the levels of support and resistanceThe thicker it is, the more uncertain the market becomes. Example: If the price is above the cloud, the trend is bullish; below it, bearish.
Visit Chikou Span (lagging span) is the lag line. It confirms past movements. In plain English: If the Chikou Span rises above the price, this often confirms a buy signal, and vice versa.
Lagging Span confirmation can thus be used as a signal to enter or exit the market, depending on price trends and other indicators.
"Ichimoku Kinko Hyo - Chikou Span crossing down" designed by WDgraph.
Open your chart on TradingView
In the toolbar, click on "Indicators" then type "Ichimoku Kinko Hyo".
Activate it, and off you go: you see the cloud (Senkou span A and Senkou span B), the Tenkan Sen line and the Kijun Sen line, as well as the Chikou Span (shift line)!
Adjust the colors to better visualize the lines: choose shades that speak to you (there's no universal rule).
Adjusting Ichimoku to your trading style is great... but you still need to know how! Here's how (and why it matters):
Standard parameters for Mr. Goichi Hosoda (9-26-52) are suitable for most daily Forex assets. The number of periods used (e.g. 9, 26, 52) is essential for calculating the various Ichimoku lines, and has a direct influence on market trend analysis.
Do you trade short time units (scalping or day trading)?
Try 6-18-36 or 5-20-40 for faster signals, but beware, they are more "nervous" and sometimes less reliable.
Get into the habit of observing:
Does the Kijun-sen "stick" to trends or is it too far out? If so, adjust the parameter value to the market.
You want tested and optimized settings?I share my favorite presets, tested on several assets, in my Ichimoku program with step-by-step explanatory videos.
Indicator overview Ichimoku Kinkō Hyō on the Tradingview platform.
First of all, what is a "point swing"? This is where the trend changes direction: a peak (swing high) or a trough (swing low). This strategy is particularly well-suited to swing trading, as it enables you to identify trend reversals effectively. This method of analysis is particularly effective.
How to spot a swing entry with Ichimoku :
Observe the Tenkan/Kijun crossroads near the cloud.
If the Tenkan-sen passes over the Kijun-sen in or just after the cloudThis is often a signal to change direction (swing).
See how the price reacts to cloud (Kumo).
When the price touches the cloud, it often hesitates: rebound, breakout or reversal. Breaking the cloud can indicate a rise or fall in the market: favor buy signals or purchases when the price is above the cloud.
The Chikou Span confirms whether the swing is "validated":
If the Lagging Span emerges from the cloud and moves in the same direction as your signal, the probability of a swing is high.
Case in point:
The trend is up, but the price is back on the cloud: watch for signals when the uptrend continues, such as a bullish Tenkan Sen/Kijun crossover or a price above the cloud. In the event of a bearish Tenkan Sen/Kijun crossover.
Chikou Span drops back below price → Here's a classic bearish swing: possible reversal, signalling a potential decline.
Also observe how each senkou span reacts to price variations.
Take the time to spot these patterns on TradingView by practicing on different time units. Of course, there are many ways to use Ichimoku, from Japanese candlestick patterns to senkou span A / B and TDI, but let's not get lost for the moment!
No winning trading without good risk management! Here's a technique that really works with Ichimoku to apply to your next trade.
Dynamic stop loss method on the Kijun-sen or the Cloud
After spotting a signal (Tenkan-sen/Kijun cross, price above the cloud, valid Chikou Span), place your stop loss UNDER the Kijun-sen for a long position (or above for a short position).
Kijun acts as a natural level of protection, reflecting the "average" market trend.
If the price moves away in your favor, move your stop-loss to trailing stop under the Kijun or cloud edge.
You secure your winnings without going out too early.
Output target :
Either you take your profits on contact with a strong level of the cloud to come
Either get out if the price really breaks the Kijun-sen.
Price targets can be defined on the basis of technical levels identified by the Ichimoku, such as the Kijun or the cloud, in order to optimize your outputs and manage risk effectively.
Why does it work? The Kijun-sen and the cloud react slowly: they filter out market "noise", and help you avoid going out on simple small corrections.
Please note: I detail and illustrate this technique in my Ichimoku program for those who want step-by-step case studies.
Golden rules :
Always maintain a risk/return ratio of at least 1:2
Adapt your position size to volatility and your capital
A simple but powerful ichimoku strategy: combine Fibonacci retracements with Ichimoku to validate key levels.
Simple method:
Traces Fibonacci retracements on a trend,
Find out whether levels 38.2, 50 or 61.8% coincide with the cloud or Ichimoku lines,
Check whether the Fibonacci levels coincide with a particular senkou span.
That's often when the price reacts!
It's time to take action!
Your Ichimoku challenge:
1️. Opens a chart on TradingView and activates the Ichimoku Kinko Hyo indicator (uses standard parameters shown above).
2️. Analyzes the market: detects a signal (crossover, cloud break, Chikou Span confirmation).
3️. Take a screenshot of your setup, and share with us a quick explanation of your decision
4️. Head over to our social networks with the hashtag #IchimokuChallenge so the whole community can learn along with you.
Bonus: The best analyses will be highlighted on our page to inspire the whole community!
It's up to you, trader! Show us how you master theIchimoku!
Technical analysis of the indicator Ichimoku Kinkō Hyō by our students and participants of #IchimokuChallenge
The Ichimoku is an ultra-complete tool, but like all indicators it is not magic. First and foremost, you need to understand the Ichimoku Kinko Hyo and its components. Then you can create a powerful Ichimoku strategy to suit your own trading style (and lifestyle).
Its strengths: Global view, clear visual signals, adaptability to all markets.
Its limitations: it can give false signals during range periods, and requires practice to use smoothly.
My advice: Test it, adapt it to your style, and always combine it with good money management.
Want to go further? My program Ichimoku training is here to help you decipher each component, understand the signals and become autonomous in your analyses. Instructional videos, complete courses and practical exercises will help you master Ichimoku thanks to a variety of adapted supports, including video demonstrations and support to help you progress at your own pace.
Join me to master Ichimoku and transform your trading!
To understand and master Ichimoku Kinko Hyopractice regularly, test your analyses on TradingView Ichimokuand don't hesitate to take up our challenge.
Share your experiences in the community!
And to go further, register at to our Ichimoku program today and start trading with confidence and precision.
You can download the complete guide to trading with Ichimoku written by Jonathan Bardon (just below). It's a comprehensive reference resource for learning to trade with Ichimoku, with detailed explanations, strategies and practical examples for all traders wishing to master this indicator.
Jonathan Bardon
An independent pro trader since 2012 and an Ichimoku expert since 2017, Jo is our trading trainer at the training center. Xenesy.
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