Ichimoku Kinko Hyo is a technical indicator developed by a Japanese journalist in the 1960’s. Ichimoko literally translates to ‘one look’ – suggesting the multi-faceted aspect of this indicator. The Ichimoku indicator suggests support and resistance levels, trend bias as well as giving entry and exit signals for trades.
The Ichimoku indicator made up of five lines called the Tenkan-sen, Kijun-sen, Senkou Span A, Senkou Span B and Chickou span.
When price is trading above the Kumo (cloud) the trend bias is bullish, when below the Kumo the bias is bearish. Tenkan and Kijun line crossovers can be used as entry and exit signals.