In Japanese, "sen" means line.
"Tenkan" means conversion.
"Kijun" means average or standerd.
"Senkou" means faster, and "chinkou" means later.
Some traders say he only uses Ichimoku, dosen't need other indicator.
A Japanese charting technique developed early in 20th century is enjoyng renewed popularity"
Ichimoku Charts by Ken Muranaka
So Ichimoku is the Japanese tradition. Strongly recommended.
I am not joking about the tradition. Do you know how difficult to receive the information about Ichimoku trading strategies? Very difficult. There are few book and articles and few people only in Western countries and in Russia are trading professionally using this indicator. Because Ichimoku trading strategies are based on the trading experience and practics. Some people call it 'trading secrets'. There are many trading strategies based on this indicator and many of them in Japanese language. And I am not ready to understand this language yet.
I know that this indicator was not developed for the forex. It was adapted to the forex market. Muram, if you are able to get some information in Japanese please share with us (in English). Simple description will be enough.
Chinkou span value is the close price of the current candle shifted some period back (26 in default settings). It is 26 days in D1 . It does not matter how many hours back. It depends on your setings of the indicator.
It this line is going to uptrend crossing the price (11 hours ago or some hours ago - does not matter) so we have buy signal. If we look at this indicator we will understand that this line may cross the price. Not current price. Just a price which was 11 hours ago for example.
This Chinkou span line is crossing the price curved line. Not the current price.
And about the settings. If I change the Kijun-sen from 26 to 1 for example I will have the following (see the image). Chinkou span line is inwhite color.
But it is necessary to have all the signals. Not one only. There are many signals are coming: some of the signals are the coming first, some signal is the last one. Last one is strongest signal.
During the weekend I am always attaching the Ichimoku indicator to the daily and weekly charts trying to analyze the future possible direction of the price.
It helps a lot.
I am looking to the Ichimoku chart trying to understand where EURUSD will go to.
Future possible uptrend.Tenkan-sen (red line) was crossed Kijun_sen (blue line) showing uptrend in the near future. We got this buy signal on the full closed bar on D1 timeframe. But this first signal is very feeble. We will have more strognger signal if Chinkou Span line will go up crossing the price. Chinkou Span line (white line) came a short way off the price ready to go up. But did not cross the price yet.
Future possible downtrend. On the other hand, according to the Ichimoku chart the EURUSD is still on downtrend now. We have Senkou Span B line on the way to the price if uptrend (Senkou Span B line is the border line of the cloud). This Senkou Span B line is the nearest resistance line. Besides the price is located below the cloud.
Trend Reversal. According to the cloud we exect uptrend to be established in 15th of March. I mean finally established uptrend. But this situation may be changed.
Flat. Tenkan-sen, Kijun_sen and Senkou Span B lines are on horizontal way. Flat. But the situation may be changed very quickly because Chinkou Span line is not fully following Tenkan-sen, Kijun_sen and Senkou Span B lines.
So, irrespective of the buy signal the situation is not very clear and probably any news will affect on the price movement now.
It was Ichimoku indicator only.
Taken from : forex-tsd.com
