Complete Ichimoku Strategy Explained with 150 Examples. Cloud, Kinko Hyo, Kijun Sen, Tenkan Sen

Main ideas / concepts conveyed

• Why Ichimoku works (and why it’s confusing at first)

  • The speaker tried many indicators but favors Ichimoku.
  • At first, it can look like a confusing bunch of lines, but with experience you see it as a complete, integrated system.
  • Ichimoku provides:
    • Entry signals
    • Exit signals
    • Trailing/management guidance (described as “trailing stops,” though details aren’t fully formalized here)
    • Trade filtering to avoid losing money when market conditions change.

• Learning analogy: dental X-rays vs trading charts

  • The speaker compares reading a trading chart to reading a dental X-ray:
    • At first it’s overwhelming.
    • Over time, your eyes learn where to look and you quickly know what matters (e.g., “long vs short” once you understand the signs).

• Core Ichimoku components (4 main parts)

  • The video uses default settings and identifies four components:
    • Kumo (Cloud) = either green or red
    • Chikou Span = “lagging span”
      • Mentioned as purple (with an earlier color confusion noted, but later the speaker consistently uses purple as the lagging line)
    • Two moving averages
      • Tenkan-sen (faster) = green
      • Kijun-sen (slower) = blue
    • Parameter settings (as used in this video)
      • Tenkan-sen set at 9
      • Kijun-sen set at 26

• How the system is interpreted (direction + location rules)

  • Cloud color determines bias
    • Red cloud → generally short-only
    • Green cloud → generally long-only
  • Moving averages must be ordered
    • For longs: green (Tenkan) over blue (Kijun)
    • For shorts: blue (Kijun) over green (Tenkan)
  • Price vs moving averages
    • For long: the close must be above the green moving average (Tenkan).
    • For short: the close must be below the green moving average (Tenkan).
  • Chikou Span (purple) location
    • For long: purple line under the candle
    • For short: purple line above the candle
  • If one condition fails, the trade is “no trade”
    • The speaker emphasizes safety early on: don’t force trades when any essential part disagrees.

• Pre-flight checklist / confirmation logic

  • The message: don’t act until multiple parts confirm the same direction.
  • Missing some winners is acceptable early; the goal is avoiding “bad trades.”
  • The speaker uses a “pre-flight checklist” at the far right of the chart.

• Multi-timeframe caution

  • Examples are shown where one timeframe (e.g., 4H) may look valid while another (e.g., Daily) says “no trade.”
  • This is presented as normal and something to handle (the video notes a future video will cover how).

• The video’s structure/outcome

  • The speaker claims to walk through about 150 examples, then ends with a “keep learning” call.
  • Future direction:
    • A companion video will explain how the lines are calculated.
    • More advanced meaning of cloud thickness (thick vs thin Kuma) and how it relates to flat vs steep clouds.

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Methodology / instructions (detailed bullet list)

A) Setup / indicator configuration (as described)

• Add Ichimoku to the chart using charting software (link mentioned in description).
• Use default inputs (don’t customize parameters for learning purposes).
• Colors:
  • Kumo (cloud) shown as green or red
  • Tenkan-sen (faster) shown as green
  • Kijun-sen (slower) shown as blue
  • Chikou Span shown as purple

B) Essential Ichimoku rules (the “pre-flight checklist”)

Perform checks looking at the rightmost side of the chart.

Long trade checklist (must all align)

1. Cloud condition
   • Green cloud (bullish bias)
2. Moving averages order
   • Green (Tenkan) above Blue (Kijun)
3. Moving average placement
   • Close above the green moving average
4. Cloud vs green moving average relationship
   • Cloud should be over/above the green (the speaker phrases this as “clothes over the green,” then similarly as “clothes over the cloud”; the core intent is that cloud positioning confirms bullish structure)
5. Chikou Span (purple) vs candle
   • Purple line under the candle
6. If all checks pass → Go long
7. If any check fails → No trade

Short trade checklist (must all align)

1. Cloud condition
   • Red cloud (bearish bias)
2. Moving averages order
   • Blue (Kijun) above Green (Tenkan)
3. Moving average placement
   • Close below the green moving average
4. Cloud vs candle confirmation
   • Cloud positioning must confirm bearish structure (described as “cloud above the close” in one place; overall intent is alignment with the short bias)
5. Chikou Span (purple) vs candle
   • Purple line above the candle
6. If all checks pass → Go short
7. If any check fails → No trade

C) How the speaker teaches “No trade” using examples

• If the system contradicts itself (e.g., cloud color vs moving average order vs price location vs purple/chikou position), then:
  • Stop and wait.
• Typical “single-fail” examples called out explicitly:
  • Price is between moving averages → often treated as no trade
  • Close is inside the cloud → often no trade
  • Purple/chikou is on the wrong side relative to the candle → no trade
  • Moving averages in the wrong order → no trade
  • Cloud hasn’t “twisted”/confirmed yet → wait for confirmation (often described as needing a bar close)

D) Alerts / confirmation timing (example instruction)

• The speaker mentions setting an alert for a specific confirmation:
  • Example: alert when price closes above the faster green (Tenkan) moving average
• Use bar close confirmation and enable notifications.

E) Learning progression (what to do next)

• Don’t ignore the system’s essential rules early; follow all rules to avoid bad trades.
• As experience grows:
  • Some traders may choose to modify rules, but the speaker recommends starting with strict adherence.
• Plan to learn more advanced interpretation (cloud geometry/thickness, steep vs flat, etc.) in later content.

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Speakers / sources featured (at the end)

• Speaker: The narrator/host of the YouTube video (name not provided in the subtitles).