First of all, a brief history of this indicator.
Ichimoku was developed in the late 1930s by Goichi Hosoda, a Japanese journalist who used to be known as Ichimoku Sanjin, which can be translated as "What a man in the mountain sees". He spent thirty years perfecting the technique before releasing his findings to the general public in the late 1960s.
Ichimoku Kinko Hyo translates to 'one glance equilibrium chart' or 'instant look at the balance chart' and is sometimes referred to as 'one glance cloud chart' based on the unique 'clouds' that feature in ichimoku charting. This is one of the few indicator, which is complete in itself. In one screen, this indicator can give you support, resistance, bullish or bearish signals, stop loss - everything you need to know for trading.
You may download Ichimoku Kinko Hyo indicator for MetaTrader platform from the indicators section of this website. Source code file is included with the indicator.
The key elements of Ichimoku indicator are:
- Chikou Span
- Senkou Span A
- Senkou Span B
We'll discuss all these 6 elements in details one by one and then combine them to make a successful strategy.
Below is the chart with all 6 elements. For time being, just remember the names of these elements on chart. Since, these are Japanese terms, you may find it difficult to remember these names in the beginning, but slowly and slowly, you'll like them.