Debated1 min read
◆ The PatternMidpoints of past highs and lows, some shifted forward in time, to show balance, trend and support at a glance
The Ichimoku Kinko Hyo ("one glance equilibrium chart") — Goichi Hosoda, 1960s Japan.
Tenkan-sen = (9-period high + 9-period low) / 2
Kijun-sen = (26-period high + 26-period low) / 2
Senkou A = (Tenkan + Kijun) / 2, plotted 26 periods ahead
Senkou B = (52-period high + 52-period low) / 2, plotted 26 ahead
Chikou = Close, plotted 26 periods back
Kijun-sen = (26-period high + 26-period low) / 2
Senkou A = (Tenkan + Kijun) / 2, plotted 26 periods ahead
Senkou B = (52-period high + 52-period low) / 2, plotted 26 ahead
Chikou = Close, plotted 26 periods back
Quick read:
• Price above cloud → bullish
• Price below cloud → bearish
• Cloud color flip → trend change
• Tenkan/Kijun cross → entry signal
• Thick cloud → strong support/resistance
• Price above cloud → bullish
• Price below cloud → bearish
• Cloud color flip → trend change
• Tenkan/Kijun cross → entry signal
• Thick cloud → strong support/resistance
Worked example
With periods 3, 6 and 12 instead of the standard 9, 26 and 52. On day 15 the conversion line (3-day midpoint) and the base line (6-day midpoint) are both 101.5, below leading span A (106.25), which was projected from six days earlier. The close of 104 sits below that edge of the cloud. Span B needs 12 + 6 = 18 days, more than the example has: the long look-back is part of the method.
The example data: 15 days, used in every indicator here
| Day | High | Low | Close | Volume |
|---|---|---|---|---|
| 1 | 101 | 99 | 100 | 50,000 |
| 2 | 103 | 100 | 102 | 62,000 |
| 3 | 103 | 100 | 101 | 48,000 |
| 4 | 105 | 101 | 104 | 70,000 |
| 5 | 108 | 104 | 107 | 85,000 |
| 6 | 108 | 105 | 106 | 60,000 |
| 7 | 110 | 106 | 109 | 90,000 |
| 8 | 110 | 107 | 108 | 72,000 |
| 9 | 108 | 104 | 105 | 80,000 |
| 10 | 105 | 102 | 103 | 66,000 |
| 11 | 105 | 102 | 104 | 55,000 |
| 12 | 104 | 101 | 102 | 75,000 |
| 13 | 102 | 98 | 99 | 95,000 |
| 14 | 102 | 99 | 101 | 64,000 |
| 15 | 105 | 101 | 104 | 71,000 |
Where it misleads
- The standard periods (9, 26, 52) date from a six-day trading week in Japan; on today’s calendar they are convention.
- Five lines and a cloud invite reading something into every configuration; more signals mean more chances to find one after the fact.
- The cloud is shifted forward, but it is drawn from past prices: it shows old support and resistance, not a forecast.
In code
mid = lambda n: (df['high'].rolling(n).max() + df['low'].rolling(n).min()) / 2 df['tenkan'] = mid(3) # 9 in the standard settings df['kijun'] = mid(6) # 26 df['span_a'] = ((df['tenkan'] + df['kijun']) / 2).shift(6) df['span_b'] = mid(12).shift(6) # 52, shifted 26 ahead
Assumes import numpy as np, import pandas as pd, and a DataFrame df with columns high, low, close and volume — the 15 days above.
Sources
- G. Hosoda (“Ichimoku Sanjin”), Ichimoku Kinko Hyo, published in Japanese from 1969
- M. Patel, Trading with Ichimoku Clouds, Wiley, 2010
Last reviewed October 2026 · How this site checks its content · Report a mistake
Pattern bridge: Five components forming a cloud is a multi-signal consensus system — like an ensemble of metrics in ML. The cloud itself is a visual confidence interval.
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