This article is taken from the Forex Journal (February 2008 issue).
The author is Cornelius Luca, a world–renown author, teacher and authority in foreign exchange who has traded and analyzed currencies since 1983. He currently is a member of the staff at Global Forex Trading, Division of Global Futures & Forex, Ltd., as one of its analysts who provides commentary on the foreign exchange market.
- Cornelius Luca, author of several trading books, details the Ichimoku technical study and applies it to numerous currency examples.
The Ichimoku Kinkou-Hyo is a technical study that was developed by a Tokyo newspaper writer, Goichi Hosoda, before World War II as a self-standing forecasting method for all financial markets. The name is a bit of a mouth-full, so many traders only call it Ichimoku, but in loose translation the full name means “One-look at the equilibrium prices.” The name originated with Hosoda’s pen name “Ichimoku Sanjin,” which means a glance of a mountain man.
This technical study consists of gauging midpoints of historical highs and lows at different lengths of time and several time lengths matched those used in the MACD’s moving averages. Ichimoku provides another method of analyzing trends and brings additional points to retracement/extension analysis, and support and resistance from moving averages.
