IchiMoku KinKo Hyo - Goichi Hosoda 1968

Application in tradestation

[sneo]

realised I had a typo in the ELD. for those who downloaded it, the error is as follows.
instead of:
SenKouNi = ((Highest(High, SanBan) + Lowest(Low, SanBan))/2)[SanBan] ;

it should be:
SenKouNi = ((Highest(High, SanBan) + Lowest(Low, SanBan))/2)[NiBan] ;

see updated ELD attached (includes some adjustment on colors).

[aaa]

Ichimoku Kinko Hyo Technical Indicator is predefined to characterize the market Trend, Support and Resistance Levels, and to generate signals of buying and selling. This indicator works best at weekly and daily charts.

When defining the dimension of parameters, four time intervals of different length are used. The values of individual lines composing this indicator are based on these intervals:

Tenkan-sen shows the average price value during the first time interval defined as the sum of maximum and minimum within this time, divided by two;

Kijun-sen shows the average price value during the second time interval;

Senkou Span A shows the middle of the distance between two previous lines shifted forwards by the value of the second time interval;

Senkou Span B shows the average price value during the third time interval shifted forwards by the value of the second time interval.

Chinkou Span shows the closing price of the current candle shifted backwards by the value of the second time interval. The distance between the Senkou lines is hatched with another color and called "cloud". If the price is between these lines, the market should be considered as non-trend, and then the cloud margins form the support and resistance levels.

If the price is above the cloud, its upper line forms the first support level, and the second line forms the second support level;

If the price is below cloud, the lower line forms the first resistance level, and the upper one forms the second level;

If the Chinkou Span line traverses the price chart in the bottom-up direction it is signal to buy. If the Chinkou Span line traverses the price chart in the top-down direction it is signal to sell.

Kijun-sen is used as an indicator of the market movement. If the price is higher than this indicator, the prices will probably continue to increase. When the price traverses this line the further trend changing is possible.

Another kind of using the Kijun-sen is giving signals. Signal to buy is generated when the Tenkan-sen line traverses the Kijun-sen in the bottom-up direction. Top-down direction is the signal to sell.

Tenkan-sen is used as an indicator of the market trend. If this line increases or decreases, the trend exists. When it goes horizontally, it means that the market has come into the channel.

[aaa]

For the 3 temporal variables, the indicator's author counsels to choose respectively the lengths of
9 days,
26 days
52 days.

At the time of this indicator's creation, there were 6 days of trading in one week.

These parameters corresponded therefore to
one week and half for the short-term analysis,
one month for the medium-term survey and
two months for the long term.

Today, the financial places are open 5 days per week.

To adjust, you can choose therefore the periods of
7 days,
22 days
44 days

As for other indicators, the parameters must be adjusted according to the periodicity of your diagram.

[aaa]

An indicator of tendency suit, efficient but very little known of the investors.

Ichimoku Kinko Hyo" has been developed by the Japanese journalist Goichi Hosoda, that wrote under the pseudonymous Ichimoku Sanjin, before World War II.

It appeared a few years ago to Japan

this indicator is excellent to predict the tendencies of the markets

The documentation on" Ichimoku Kinko Hyo" remains limited

[sneo]

printed source for ichimoku kinkou hyou (japanese):
1.一目均衡表の研究 ISBN 4925152009 (ichimoku kinkou hyou no kenkyuu, Study of Ichimoku Chart Equilibrum)
2.一目均衡表の基本から実践まで (よくわかる!シリーズ) ISBN 4775961047

[aaa]

1.一目均衡表の研究 ISBN 4925152009 (ichimoku kinkou hyou no kenkyuu, Study of Ichimoku Chart Equilibrum)
2.一目均衡表の基本から実践まで (よくわかる!シリーズ) ISBN 4775961047

I'm not sure that everybody read Japanese on this forum...

[minoo]

You may find this youtube channel useful

YouTube - IchimokuCharts's Channel

Enjoy Minoo