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 All-in-One System
Example chart: Ichimoku Kinko Hyo setup

 

  1. Price (candlesticks)
    • Candlesticks on a black background showing daily Open-High-Low-Close.
  2. Tenkan-sen (9-period, red line)
    • Short-term trendline, calculated as the midpoint of the 9-period high and low.
  3. Kijun-sen (26-period, blue line)
    • Medium-term trendline, midpoint of the 26-period high and low.
  4. 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)
  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 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

  1. Trend filter: Only trade when price & Chikou Span are clearly above (or below) the cloud.
  2. Entry: Tenkan/Kijun cross in line with the overall trend.
  3. Stop-Loss: Directly behind the cloud edge (Senkou Span A/B) or at the Kijun level.
  4. 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.