Ichimoku Kinko Hyo (All-in-One System) Setup & Components Tenkan (9), Kijun (26), Senkou Span B (52), adjust cloud colors Timeframe: H4/D1 for maximum reliability Filter: Trend direction based on cloud positioning Entry Long: Price > Cloud and Tenkan crosses Kijun from below. Short: Price < Cloud and Tenkan crosses Kijun from above. Additional: Chikou Span (lagging line) should not be blocked by price. Exit Stop-Loss: Behind the cloud edge (Senkou Span A/B) or at the Kijun level. Take-Profit: When Tenkan/Kijun cross again or price falls back into the cloud. Risk Management Only trade in the trend direction (price not inside the cloud) Volume scaling: Halve the position size after every second swing high/low Example chart: Ichimoku Kinko Hyo setup Price (candlesticks) Candlesticks on a black background showing daily Open-High-Low-Close. Tenkan-sen (9-period, red line) Short-term trendline, calculated as the midpoint of the 9-period high and low. Kijun-sen (26-period, blue line) Medium-term trendline, midpoint of the 26-period high and low. Senkou Span A & B (Cloud, orange area) Senkou A (green line): (Tenkan + Kijun)/2, shifted 26 periods forward Senkou B (brown line): Midpoint of 52-period high/low, shifted 26 periods forward The cloud (Kumo) is shaded orange: Light orange when Senkou A > Senkou B (bullish) Dark orange when Senkou A < Senkou B (bearish) Chikou Span (green lagging line) Today’s closing price, shifted 26 periods back. Shows whether current bullish momentum is confirmed. What the Chart Shows Overall bullish trend: Price remains consistently above the cloud. Senkou A is clearly above Senkou B (light cloud). Tenkan and Kijun are rising. Entry signal (Long): At the blue bars (December 2023), Tenkan (red) crosses Kijun (blue) from below. At the time of the cross, price is already above the cloud – trend filter is fulfilled. Chikou Span runs above price and is not blocked by the cloud. This combination generates the marked long entry. Follow-up movement: After the cross, price continues upward, confirmed by rising Tenkan/Kijun and a thickening cloud. Several later crosses on a weekly basis allowed new buys, while the cloud acted as dynamic support. Interpretation for Your Trading Trend filter: Only trade when price & Chikou Span are clearly above (or below) the cloud. Entry: Tenkan/Kijun cross in line with the overall trend. Stop-Loss: Directly behind the cloud edge (Senkou Span A/B) or at the Kijun level. Exit: Either opposite cross or fallback into the cloud – then close or trail the trade. The chart therefore ideally illustrates how Ichimoku combines all key trend, momentum, and support/resistance signals in one picture.
