In fact we recommend daily charts more than other time-frames. However, It would be better if the focus remains on familiarizing oneself with the names of the components and the usage rather than going into the details of the formulas and their construction aspects.īefore we start, we wish to mention that the Ichimoku cloud works better on longer time-frame charts (i.e., daily or weekly charts) and should be avoided on shorter time frame charts. We will try to explain this indicator in a simple manner. we get to know about all these in just one glance and hence the name Ichimoku, which means “one glance”.Īt the first glance a Ichimoku cloud chart may seem to be a complex set of too many components but the truth is that it that this powerful indicator is quite simple to use. In case of support and resistance levels also, what we get are multiple levels of dynamic supports and resistances. Similarly while it identifies the trends, it also indicates the momentum of the trend. What makes Ichimoku cloud different from other indicators is that while it generates trading signals, it also tells us about the strength of those signals. It is used to identify entry and exit points, support and resistance levels and the overall trend. Ichimoku cloud, which is called Ichimoku Kinko Hyo in Japanese, is a versatile and very handy technical analysis indicator. However, it had taken 30 years of refinements before this technical indicator was released, in the late 1960s, to be used by other traders. Ichimoku cloud was developed during late 1930s by Tokyo newspaper journalist Goichi Hosoda. Introduction and History of Ichimoku cloud indicator Ichimoku complementing candlestick chart