Ichimoku Cloud
The Ichimoku Cloud (Ichimoku Kinko Hyo) is a comprehensive indicator system developed by Goichi Hosoda. It consists of five components: Tenkan-sen (conversion line), Kijun-sen (base line), Senkou Span A and B (forming the cloud), and Chikou Span (lagging line). Together, they provide a complete picture of trend, momentum, and support/resistance.
How Ichimoku Is Used in Trading
The cloud (kumo) is the most distinctive feature. When price is above the cloud, the trend is bullish; below, bearish. The cloud itself acts as dynamic support and resistance. A thick cloud indicates strong support or resistance, while a thin cloud is more easily broken.
The Tenkan-sen/Kijun-sen crossover generates trade signals similar to moving average crossovers. When Tenkan crosses above Kijun, it is a bullish signal (especially strong when it occurs above the cloud). The reverse produces a bearish signal. The Chikou Span confirms the signal when it is above price for longs or below price for shorts.
Ichimoku is popular in algorithmic trading because it combines multiple analysis dimensions into one indicator. Rather than layering five separate indicators, a single Ichimoku reading provides trend direction, strength, support/resistance levels, and momentum confirmation.
Access via API
curl -H "X-API-Key: YOUR_API_KEY" \
"https://tickatlas.com/v1/indicator?symbol=USDJPY&indicator=ichimoku&timeframe=D1"Returns all five Ichimoku components: Tenkan, Kijun, Senkou A, Senkou B, and Chikou.