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Ok Im going to start at the very beginning, I think its just as importantto know the origin and history of this indicator as it is to learn how totrade it, dont worry this is no boring History lesson, its actually a veryinteresting and fascinating story.Hopefully this will make you give the indicator the respect it deserves, Ithink once you realise the time and effort that went into the birth of thisindicator and the dedication and time the creator put into it, it will giveyou a good foundation and start you with the correct mindset.Ok you sitting comfortably?Good, then Ill begin. Ichimoku - A History Lesson[dc]I[/dc]chimoku Kinko Hyu is a purpose built trend trading chartsystem that can be used in every tradeable market, if price moves upand down and its tradable then ichimoku can be used to predict itsmovement in a very unique way.Ichimoku uses a collection of indicators that work together to create avery visible system that enables the trader to see "at a glance" the lowprobability trade set ups, from those of higher probability.Ichimoku means: one glance, Kinko means: equilibrium (or balance),and Hyo means: chart.So loosely translated Ichimou Kinko Hyu means One glanceequilibrium chart or Chart balance at a glance"Who came up with the idea for the ichimoku system"?Ichimoku was developed by a Japanese journalist named Goichi

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Hosoda, to his friends he was also known as Ichimoku Sanjin, which canbe translated as "What a man in the mountain sees".Goichi was an extremely talented yet quiet man, he spent most of hisdays locked away writing and reporting on the old rice trading markets,he understood how price moved and how it would react around certainareas of a chart, he soon discovered that price followed certain rules andthe "reactions" were due to what we now know today as Support andResistance.Goichis aim was to create an "all in one" indicator that would help himview and analyse the charts in more detail but in less time.This was of course going to be a huge and deeply complex task, butGoichi was dedicated to his work and started the process just before theSecond World War.Today if you were going to create a new groundbreakingindicator/charting method, you would have an endless supply of techand information to draw from, the main piece of software being a highlyaccurate backtesting program built into the Metatrader platform. Thislets you check back over years and years of price movements, and tweakand adjust in a matter of minutes to your hearts content.However this was the 1940s the first commercial computer hadnt evenbeen invented resources were tight.... but Goichi had an idea.He hired a large group of students who spent over 20 years manuallybacktesting the different formulas.lets just imagine that for a minute, 20 years of studying pricemovements and structure, just to create a method that may not even beany good or not even work at all......?!?Truth is in 1969 Hosoda finally finished the ichimoku kinko hyucharting method and presented his book to the Japanese public, itrapidly became the most frequently used indicator in all the Japanesetrading rooms.Ichimoku shows you the whole story of the market, including tradedirection, all the main support and resistance lines and if tradedproperly, you can find exact entry and exit points. It can also be used onall markets and all time framesEven though ichimoku gained such wild popularity all across Asia,Ichimoku didnt make an appearance in the western world till the 1990sand even then because of the lack of translation and information, it wasjust seen as another weird charting method and most people just didnt

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have the time or passion to try and learn this strange looking exoticindicator.Only now, in the early 21st century do westerners understand the truepower of this indicator.Hopefully i can share the knowledge I have learn about this indicatortoo and help you unlock the secret of this magical trading method.Before I end this post I want to leave you with a small excerpt, to giveyou an idea of how Goichi Hosoda thinks and the passion he held for hischarting method.Hosoda strongly believed that the market was a direct reflection ofhuman group dynamics or behaviour. He felt that human behaviourcould be described in terms of a constant cyclical movement both awayfrom and back towards equilibrium in their lives and interactions. Eachof the five components that make up ichimoku provide its ownreflection of this equilibrium or balance.Thanks for listeningChris (admin).