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  2. 2. Developed in late 1930s, Ichimoku Kinko Hyo (一目均衡表 Ichimoku Kinkō Hyō?) usually justcalled Ichimoku is a technical analysis method that builds on candlestick charting to improve theaccuracy of forecast price moves
  3. 3. Ichimoku Components:Ichimoku Components:With its 6 main components, the Ichimoku offers a rich view of what is happening in the market:1. The Tenkan-sen: (“Conversion Line”): is a nine- period moving average2. The Kijun Sen: (“Base Line”): is a twenty six- period moving average
  4. 4. The most important component is the Ichimoku cloud”, representing current and historical price action.It behaves as simple support and resistance levels by creating visual barriers.The last two components of the Ichimoku application are:3. Senkou Span A: The sum of the Tenkan Sen and the Kijun Sen divided by two. The calculation is mostly plotted in 26 time periods ahead of the current price action.4. Senkou Span B: The sum of the highest high and the lowest low divided by two. By default the calculation is taken over the past 44 time periods and is plotted into 22 periods ahead.
  5. 5. Backbone of Ichimoku5. Kumo cloud: The cloud is formed by using the Senkou Span A and Senkou Span B.6. Chikou Span: Together with Kumo cloud Chikou Span gives the traders the opportunity to determine the strength of signals.
  6. 6. Q&AsShould Ichimoku be used only on daily candles? Not only, though it was initially designed for daily price movementsIs Ichimoku not to be used in FOREX market? Ichimoku is a great tool working with price movement.Are 26/52 the only settings for this indicator? Traders should try different settings for different entries.