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    Ichimoku (ICH)
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      Ichimoku (ICH)

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        Article summary

        The Ichimoku (ICH) is a technical analysis indicator that provides a complete picture of the market setup. It is used to monitor the market momentum, define the support and resistance levels, and detect price trend: the direction and strength. The indicator consists of the following plots:

        • TenkanSen (conversion or turning line) - trend indicator, the most sensitive 9-period moving average of the Ichimoku lines.
        • KijunSen (baseline) - trend indicator, a 26-period moving average.
        • ChikouSpan (lagging line) - moving average of the TenkanSen and KijunSen indicators.
        • SenkouSpanA (leading line A) - 52-period moving average.
        • SenkouSpanB (leading line B) - close price plotted 26 periods back.

        The KijunSen and TenkanSen lines help identify the trend and its direction respectively: when the price is above KijunSen, prices will likely keep going up, and vice versa. A buy signal is generated when the ChikouSpan line crosses over the price, or when the TenkanSen crosses over the KijunSen. A sell signal is generated when the ChinkouSpan line crosses under the price, or when the TenkanSen crosses under the KijunSen. The price movement can be confirmed when both crosses occur. 

        The SenkouSpanA and SenkouSpanB lines show expected trend behavior and can be used as support and resistance levels. The space between them is called Cloud, and is graphed in a hatched pattern.

        TenkanSen = (9-PH + 9-PL) / 2
        KijunSen = (26-PH + 26-PL) / 2
        ChikouSpan = Close plotted 26 periods in the past
        SenkouSpanA = (CL + Base Line) / 2
        SenkouSpanB = (52-PH + 52-PL) / 2

        where:
        PH – Period high
        PL – Period low
        CL – Conversion line

        High-Low VolatilityIchimoku

        INPUTS

        InputDescription
        TenkanPeriodThe number of bars used to calculate the TenkanSen plot
        KijunPeriodThe number of bars used to calculate KijunSen, ChikouSpan, SenkouSpanA, SenkouSpanB

        PLOTS

        The plot renders the data you are working with on the chart. You can show/hide a plot by clicking the corresponding item in the settings. Every plot has a set of basic settings that you can change: color, weight, and type.

        PlotDescription
        TenkanSenThe Tenakan plot used as a signal line
        KijunSenThe Kijun plot used as a confirmation line
        ChikouSpanThe Chikou plot used as a suppor/resistance line
        SenkouSpanAThe Senkou SpanA plot
        SenkouSpanBThe Senkou SpanB plot
        Color

        Click the color rectangle under the plot's name to open the palette. Use the slider at the bottom to set the opacity of the color.

        Palette To create a custom color:
        1. Clickto open the color picker
        2. By using the slider at the bottom, adjust the main color
        3. Then, set a shade for the main color on the palette

        The custom-created colors are added to your palette. To remove a custom color, drag it out of the palette.

        Weight
        Change the value (in px) to adjust the thickness of the plot.
        Type
        The following plot types are available:
        • Linear. The plot is displayed as a line.
        • Column. The plot is displayed as a histogram.
        • Difference. The plot is displayed as a line which represents the difference between High and Low prices of the bar.
        • Points. The plot is displayed as points.
        • Text above candle. The plot is displayed as the price labels above candles on the chart.
        • Text below candle. The plot is displayed as the price labels below candles on the chart.
        • Triangle above candle. The plot is displayed as triangles above candles on the chart.
        • Color candle. The candles on candle-type charts are highlighted with specified colors.

        OVERLAYING

        Check Overlaying to display the indicator on the chart. Otherwise, the indicator is shown in a study pane down below.

        Note: To reset the settings, click Restore to Default next to the SETTINGS: INDICATOR'S TITLE
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