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 significance
  • Filter: Trend direction based on cloud position

Entry

  • Long: Price > cloud and Tenkan crosses Kijun from below.
  • Short: Price < cloud and Tenkan crosses Kijun from above.
  • Note: Chikou Span (lagging line) should not be blocked by price.

Exit

  • Stop-loss: Beyond the cloud edge (Senkou Span A/B) or at the Kijun level.
  • Take-profit: When Tenkan/Kijun cross again or when price falls back into the cloud.

Risk Management

  • Only trade in the trend direction (price not inside the cloud).
  • Volume scaling: Halve position size after every second swing high/low.
Example chart: Ichimoku Kinko Hyo all-in-one system
Example chart: Ichimoku Kinko Hyo setup
  1. Price (candles)
    • Candlesticks on a black background show each day’s open–high–low–close.
  2. Tenkan-sen (9-period, red line)
    • Short-term trend line, calculated as the average of the 9-period high and low.
  3. Kijun-sen (26-period, blue line)
    • Medium-term trend line, average of the 26-period high and low.
  4. Senkou Span A & B (cloud, orange fill)
    • Senkou A (green line): (Tenkan + Kijun)/2, shifted 26 periods forward
    • Senkou B (brown line): Average of the 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)
  5. 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 clearly above Senkou B (light cloud).
    • Tenkan and Kijun are rising.
  • Entry signal (long):
    • Around 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 satisfied.
    • Chikou Span runs above price and is not blocked by the cloud.
    • This combination generates the marked long entry.
  • Follow-through:
    • After the cross, price continues higher, confirmed by rising Tenkan/Kijun and a thickening cloud.
    • Several subsequent crosses on the weekly timeframe allowed new entries, while the cloud acted as dynamic support.

How to interpret this for your trading

  1. Trend filter: Take trades only when price & Chikou Span are clearly above (or below) the cloud.
  2. Entry: Tenkan/Kijun cross in the direction of the higher-timeframe trend.
  3. Stop-loss: Directly beyond the cloud edge (Senkou Span A/B) or at the Kijun level.
  4. Exit: Either on an opposite cross or on a drop back into the cloud — then close or trail the position.

The chart ideally illustrates how Ichimoku unites all key trend, momentum, and support/resistance signals in a single view.

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