The Ichimoku Kinko Hyo is one of those indicators you should have at least an understanding of because of its originality compared to Western technical indicators. It is advisable to use this tool in the long-term on daily and weekly charts, where it best displays a panoramic view of what is happening with a certain currency pair.
One great thing about the Ichimoku Clouds, for instance, is that it doesn't need any filters as it has them already incorporated.
Another of its particularities is the clouds formed by the two moving averages projected 26 periods ahead in time: the Senkou Span A and Senkou Span B. This is a unique feature which most indicators don't have, the fact that they appear on the right side of the chart always several periods ahead of price. The clouds work as excellent dynamic support and resistance levels, especially in Yen pairs. The reason for this is understandable since the origin of the indicator is Japanese.
A third singularity of the indicator is the Chikou Span, a line which tracks the price movement 26 time periods back on the chart, providing – together with the clouds - a lecture on how current price action will act in reaction to its recent memory. That's awesome, isn't it?
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REPORT: Understanding and Using Ichimoku - Littlefish FX
REPORT: Currency Trading with Ichimoku Kinkou-Hyo - The Forex Journal
VIDEO: An introduction to Ichimoku Cloud Charting - Nicole Elliott, CFTe
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Editors’ Picks
EUR/USD recaptures 1.0700 ahead of key US data
EUR/USD is trading above 1.0700, staging a decent recovery despite soft inflation data from the Euro area. The Euro buyers cheer hawkish ECB commentary while the risk-positive market environment limits the USD's upside ahead of key US data.
GBP/USD rises above 1.2450 as risk flows dominate
GBP/USD is recovering above 1.2450 in the European session, as the US Dollar resumes its downside amid a risk-on market mood. Renewed dovish Fed expectations and US debt deal passage keep the US Dollar undermined ahead of the US ADP jobs and ISM Manufacturing PMI data.
USD/JPY recovery stalls above 139.00, bull flag in the spotlight
USD/JPY picks up bids to refresh its intraday high near 139.50 as it prints the first daily gains in four during early Thursday. In doing so, the Yen pair recovers from the bottom line of a short-term bull flag formation. The RSI (14) line’s rebound from the below-50 region seems to underpin the USD/JPY pair’s latest recovery moves within the flag.
Editors’ Picks
EUR/USD recaptures 1.0700 ahead of key US data
EUR/USD is trading above 1.0700, staging a decent recovery despite soft inflation data from the Euro area. The Euro buyers cheer hawkish ECB commentary while the risk-positive market environment limits the USD's upside ahead of key US data.
GBP/USD rises above 1.2450 as risk flows dominate
GBP/USD is recovering above 1.2450 in the European session, as the US Dollar resumes its downside amid a risk-on market mood. Renewed dovish Fed expectations and US debt deal passage keep the US Dollar undermined ahead of the US ADP jobs and ISM Manufacturing PMI data.
Gold price rebounds toward $1,970 amid renewed US Dollar selling
Gold price is rebounding toward $1,970, having found strong bids near $1,950. The risk-on market profile is weighing on the US Dollar, enabling Gold price to attempt a recovery. The further upside, however, appears elusive amid rallying US Treasury bond yields. US data awaited.
Bitcoin likely to remain in red through the next quarter if history is any indication
Bitcoin (BTC) price produced a monthly close at $27,210, noting a -6.92% return for May. The last-minute slide in BTC put an end to the four-month bullish streak that kickstarted the 2023 rally.
C3.ai gets punched in the face, is the AI hype a bit overdone?
OMG! Stocks sold off on Wednesday….and NVDA? That stock gave back $15 or 3.8% - What is going on? That is not supposed to happen….it can only go up! Quick someone call the NVDA police!
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