Ichimoku Cloud

Ichimoku Kinko Hyo ("one-glance equilibrium chart") is a comprehensive trend system developed by Goichi Hosoda over 30 years before publishing in 1969. The strategy uses multiple components — Tenkan, Kijun, Senkou A, Senkou B, and Chikou — to define trend direction, support/resistance, and entry timing in a single glance.

The Backstrap implementation focuses on the most-used signal: Tenkan/Kijun crossover combined with cloud (Senkou A/B) confluence. This is the cleanest entry trigger Ichimoku provides while still leveraging the system's multi-timeframe structure.

Long entry requires three confluences: 1. Tenkan (9-bar HL midpoint) crosses above Kijun (26-bar HL midpoint). 2. Price is above the cloud (above both Senkou A and Senkou B at the current bar). 3. Optional: Chikou (close shifted 26 bars back) is above price 26 bars ago.

Short entry is the symmetric setup — Tenkan below Kijun, price below cloud.

Exit is held for a fixed number of bars (default 12) or on the opposite cross.

Defaults: Tenkan 9, Kijun 26, Senkou B 52, hold 12 bars.

Strong, sustained trends — Ichimoku's multi-component confluence requires several conditions to align, so when they do, the trend tends to be real.

Higher timeframes (4-hour, daily, weekly) — the standard 9/26/52 periods are calibrated for daily charts and translate well to 4-hour.

Asian-session-driven assets (Nikkei, JPY pairs) — the system has cultural and structural roots there.

Sideways markets — the cloud thickens and price chops within it, generating no clear bias.

Lower timeframes (< 1 hour) — the periods are too long, signals come too late.

Volatile post-news periods where the cloud's projection forward (Senkou A/B are shifted +26) doesn't reflect current conditions.