What Ichimoku shows
Five lines that show trend, momentum and future support or resistance in one picture.
Indicator guide · Bands and channels
Ichimoku Cloud: what it shows, settings and how to read it.
Five lines that show trend, momentum and future support or resistance in one picture.
How it is calculated
Five lines: the Conversion line (midpoint of the last 9 candles), the Base line (midpoint of 26), two Leading spans that form the cloud and are drawn 26 candles ahead, and the Lagging span (the close drawn 26 candles back).
Usual settings
9, 26 and 52: the original settings, still used by almost everyone.
How traders read it
Price above the cloud is bullish, below is bearish, inside is undecided. A thick cloud is strong support or resistance.
Where it fails
It looks busy at first and is slow on short timeframes.
What to combine it with
It is a complete system on its own; many traders only add volume or RSI.
Try Ichimoku on a live chart
Sign in, open Genni Charts, press the "ƒx Indicators" button above the chart and choose Ichimoku. Click its name on the chart to change the settings. It is free for every member.
More in "Bands and channels": Bollinger Bands · Keltner Channels · Donchian Channels · All 25 indicators
Questions
Frequently asked questions
What is the Ichimoku indicator?
Five lines that show trend, momentum and future support or resistance in one picture.
What are the best settings for Ichimoku?
The usual settings are: 9, 26 and 52: the original settings, still used by almost everyone. No setting is best in every market, so test a change on past data before relying on it.
Is Ichimoku reliable on its own?
No single indicator is. It looks busy at first and is slow on short timeframes. Most traders use it together with: It is a complete system on its own; many traders only add volume or RSI.
How do I add Ichimoku to a chart for free?
Sign in, open Genni Charts, press the "ƒx Indicators" button above the chart and choose Ichimoku. Click its name on the chart to change the settings. It is free for every member.
This page is education, not investment advice. Trading involves substantial risk of loss. Read next: Trading indicators · Trading strategies · Candlestick patterns