Ichimoku Complete Guide

Ichimoku Cloud

trendParams: tenkan=9, kijun=26, senkou=52

What is Ichimoku?

The Ichimoku Cloud, or Ichimoku Kinko Hyo, is a comprehensive technical analysis indicator developed by Japanese journalist Goichi Hosoda in the late 1930s and released in 1969. It is designed to provide at-a-glance information about trend direction, momentum, and support/resistance levels. The indicator consists of five main components: the Tenkan-sen (Conversion Line), Kijun-sen (Base Line), Senkou Span A, Senkou Span B, and the Chikou Span (Lagging Span). The area between the two Senkou Spans forms the 'Kumo' or Cloud. Interpretation is multifaceted. Generally, when price is above the cloud, the trend is bullish; when below, it is bearish. The cloud itself acts as a dynamic support and resistance zone; a thicker cloud suggests stronger support/resistance and higher volatility. Common parameter settings are 9, 26, and 52 periods, representing short, medium, and long-term cycles. Practical usage involves looking for 'TK Crosses' (Tenkan-sen crossing Kijun-sen) as entry signals, while using the Chikou Span to confirm the trend by comparing current prices to those 26 periods ago. Traders often wait for a 'Kumo Breakout' where price exits the cloud to confirm a new trend. It is most effective in trending markets and can produce false signals during consolidation.

Signal Types

TK Cross

A bullish signal occurs when the Tenkan-sen (9-period) crosses above the Kijun-sen (26-period). A bearish signal occurs when it crosses below.

Kumo Breakout

Price moving out of the cloud. Moving above the cloud is a bullish breakout; moving below is a bearish breakout.

Chikou Span Confirmation

The trend is confirmed bullish if the Chikou Span is above the price from 26 periods ago, and bearish if below.

Kumo Twist

When Senkou Span A and B cross, changing the cloud color. This often signals a potential trend reversal.

Related Indicators

FAQ

What do the default parameters 9, 26, and 52 represent?

Historically, they represented the Japanese business weeks: 9 for a week and a half, 26 for a standard business month, and 52 for two months.

Can the Ichimoku Cloud be used for day trading?

Yes, it can be used on any timeframe, but it is generally considered more reliable on daily and weekly charts where noise is reduced.

What does a very thin cloud indicate?

A thin cloud indicates weak support or resistance, suggesting that the price can easily break through it, often during periods of low volatility.

Reviewed by KlineVision Research Team, CFA Charterholder, 10+ years quantitative research· 23 апр. 2026 г.

Parts of this page (FAQ, introductions) are AI-assisted. Core data and statistics are algorithmically computed. All pattern definitions are human-reviewed.

Data source: EODHD · Last updated: 23 апр. 2026 г.

Отказ от ответственности: Эта страница основана на общедоступных рыночных данных и алгоритмическом техническом анализе. Она не является инвестиционным советом.

Data source: EODHD · © 2026 KlineVision AI