Ichimoku Kinko Hyo. Ichimoku Kinko Hyo Technical Indicator is predefined to characterize the market Trend, The Ichimoku Kinko Hyo Chart, A multi-faceted indicator designed to give support/resistance.
History
The Ichimoku Kinko Hyo - Ichimoku Kinko Hyo The History The Ichimoku Kinko Hyo Japanese charting technique, developed before World War II, indicator was developed in the 30s, but only in 1968 by its inventor, the Japanese journalist Goichi Hosada (who also called himself Ichimoku Sanjin) published. Since enjoys the indicator in Asian trading room of a large popularity. But also internationally, this indicator erlang in recent years its reputation. Metatrader Indicators: Ichimoku Kinko Hyo. Ichimoku Kinko Hyo technical indicator is predefined to generate signals of buying and selling and to distinguish the trend.
Some definitions
The indicator consists of 5 lines that have their own names. Of these two are the "Kumo" (Translated: cloud "), so this indicator is also called" cloud chart "on the Internet or in the literature referred to. Forex trading indicator Ichimoku. Ichimoku Kinko Hyo trading indicator is predefined to characterize the market Trend, Support and Resistance Levels.
For better understanding, the definitions of some Japanese terms:
Sen = line
Tenkan = conversion, conversion
Kijun = average, standard
Senkou = Faster and Faster
Chikou = slow, later
Kumo = Cloud
The Ichimoku Kinko Hyo Technical Indicator is predefined to characterize the market Trend, Support and Resistance Levels, and to generate signals of buying and selling. Ichimoku can logically be translated as "At a glance," Kinko with "balance or equilibrium" (in terms of time and price) and Hyo is the Japanese word for "Chart".
Ichimoku Kinko Hyo, which means "one glance equilibrium chart",
Ichimoku Kinko Hyo Calculations and parameter
The Ichimoku Kinko Hyo is specified with three parameters (A, B, C).
In the original version, these are 9.26 and 52 However, the original three numbers refer to the playback of a trading week with (the then usual) 6 trading days per week. Since today is the trading week, only 5 days, since the parameters used 7,22,44.
Other common settings that are circulating on the Internet or literature:
120 / 240 / 480 (for 1H - Chart window)
6 / 12 / 24 (for 1H - Chart window)
72 / 144 / 288 (For M5 - Chart window)
12 / 24 / 120 (for 1H - Chart window)
12 / 60 / 120
5 / 10 / 20 (for 1D - Chart window)
8 / 34 / 144
8 / 26 / 130 (For M30 - Chart window)
His true greatness and strength is manifested in the higher time frames (1D, 1W, 1M)
Now let's take a look at the most important component, the Ichimoku "cloud", which represents current and historical price action.
As already mentioned consists of HRH - Indicator of 5 lines:
1) Tenkan Sen = Conversion Line = (Highest high + lowest low) / 2 for the last A periods.
2) Kijun Sen = Base Line = (Highest high + lowest low) / 2 for the final B periods
3) delineation Chikou span = = current closing price of B plotted periods set back
4) Senkou Span A = Leading area A = (+ Kijun Tenkan Sen Sen) / 2, plotted for periods B displaced forward.
5) Senkou Span B = Leading the field B = (Highest high + lowest low) / 2 for the last C periods to periods marked B displaced forward.
The area between Senkou Span A and Senkou Span B is called the Kumo (cloud).
Ichimoku Kinko Hyo in practice
Ichimoku is a trend following - an indicator. It should therefore only the signals are traded, the show also in trend direction. This indicator shows the trend in addition to the trend toward strength, generate buy and sell signals and shows support and resistance zones.
In the following charts I have addressed each leaving only the color line, all other lines I have "blacked out".
Tenkan Sen:
Let us first look at the Tenkan Sen (The following picture is Tenkan Sen shown in blue).
• Displays the Tenkan Sen upward, with little straight planes, there is an upward trend.
• Displays the downstream Tenkan Sen, straight planes with little, there is a downward trend.
• Tenkan Sen is useful for support and resistance: Often the price bounces off the Tenkan Sen.
Kijun Sen:
The following picture is the Kijun - line shown in red.
• Price is about Kijun Sen = Generally BUY
• Price is under Kijun Sen = Generally SALE
• Kijun Sen is better suited for Support / Resistance - Tenkan provisions as Sen.
• Is suitable for realistic stop loss.
The Tenkan and Kijun Sen Sen - intersection
Some traders look at the intersection of both lines is already an entry signal. In the Ichimoku Kinko Hyo proper use of it is important to consider the whole picture of the indicator. So for some traders, the intersection of both lines is just a trend - Confirmation.
Basically you can say:
• Tenkan Kijun Sen Sen crosses from top to bottom = SHORT
• Tenkan Kijun Sen Sen crosses from bottom to top = LONG
• An intersection of both lines is usually a trend confirmation.
• Are Tenkan Sen and Sen Kijun same straight (horizontal) which is a NO TRADE characters.
The cloud (Kumo)
The Kumo is composed of two lines, Senkou Span A and Senkou Span B (In the graph is Senkou Span A and Senkou Span B green colored yellow). The Ichimoku Cloud, also known as Ichimoku Kinko Hyo, is a versatile indicator that defines support and resistance, identifies trend direction, gauges momentum
Ichimoku Kinko Hyo Basic Rules :
• Senkou Span A, Senkou Span B = about rising market
• Senkou Span A, Senkou Span B = under a falling market
• Thick clouds are Kumo strong support / resistance areas, the price of "crack" can be difficult.
• Is the price in the cloud, there is a trend - before consolidation. THERE SHOULD NOT BE TRADED!
• If the price above the cloud = BUY
• If the price is below the cloud = SELL
• Tick the Senkou - lines that form the clouds, it's a sign that a trend is now changing.
Chikou clamping
The concept of tension is Chikou bit hard to understand, but in this line professionals see the "soul" of the indicator while Kumo's his heart.
It is the current price of B transferred back periods shown in the chart.
The following graph Chikou chip is shown in turquoise.
• If Chikou tension over the course before the B periods is adequate, an upward trend.
• If Chikou tension below the price before B periods, there is a downward trend.
• Is Chikou tension on the cloud trend =
• Chikou chip under the cloud downward trend =
On the next screen all the lines are now drawn together. Frightening? I hope not ...
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