Ichimoku is a technical or chart indicator that is also a trend trading system in and of itself. The creator of the indicator, Goichi Hosada, introduced Ichimoku as a “one glance” indicator so that in a few seconds you are able to determine whether a tradable trend is present or if you should wait for a better set-up on a specific pair.

The Ichimoku signals, indeed all Ichimoku elements, should never be taken in isolation but considered in the context of the overall chart.  Ichimoku Kinko Hyo is a visual technical analysis system and the charts are designed to be considered in their entirety, with regard given to the relationships between all of the elements, including the price.  As such, Ichimoku is not suitable for automated or "single event" decision making.

 Why is this Indicator So Special?

This indicator will show you 8 different configurable timeframes which provide a global view of the market conditions. 

DN = Bearish, NT = Neutral, UP = Bullish

Ichimoku indicator description

1. Tenkan Sen - a moving average of the highest high and lowest low over the last 9 trading days. (Highest high + Lowest low) / 2 over the last 9 trading days.
2. Kijun Sen - a moving average of the highest high and lowest low over the last 26 trading days. (Highest high + Lowest low) / 2 over the last 26 trading days.
3. Senkou Span A - the average of the Tenkan Sen and Kijun Sen, plotted 26 days ahead. (Tenkan Sen + Kijun Sen) / 2 plotted 26 days ahead
4. Senkou Span B - the average of the highest high and lowest low over the last 52 days, plotted 26 days ahead. (Highest high + Lowest low) / 2 over the last 52 trading days plotted 26 days ahead.
5. Chikou Span - the closing price plotted 26 days behind.