Ichimoku Kinko Hyo charts

The Ichimoku Kinko Hyo or ‘equilibrium at a glance’ chart is a trading method that tends to highlight higher probability trades. It is relatively new to Western technical analysis, but its popularity has been increasing among financial markets traders.

Ichimoku charts apply a series of indicators on one chart, allowing traders to assess price action in three time frames — long, medium and short. This style of analysis enables the trader to see the ‘whole’ picture for any particular security.

Figure 8.21 shows an hourly Ichimoku chart of the EUR /USD. This chart highlights the bearishness in this market in the long, medium and short term time frames by price action trading below the Kumo, Kijun Sen and Tenkan Sen.