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Ichimoku – Japanese Cloud Method

Ichimoku Kinko Hyo, also known as the Japanese Cloud method, was invented by a Japanese journalist, Goichi Hosada, in the late 1930s to trade the Japanese rice market. He was a quiet but very talented man who obsessed over finding profitable patterns in the market. He soon discovered the concepts we know today as support and resistance. He wasn’t satisfied by this, however, and spent over 30 years trying to perfect an ‘all-in-one’ system – and he ultimately succeeded.

In numerous backtests of common indicators (MACD, Stochastic Oscillators, etc), Ichimoku has turned out to be the only consistently profitable system. The combination of many different ideas is the edge that it has over other traditional technical analysis signals. It is one of a handful of tools that even professional traders at banks and hedge funds look at to inform their trading.

Ichimoku MethodSo how does this system work? The price of excellence is an increase in complexity over a typical signal; look at the chart below for example:

Getting to grips with the interactions of the various lines (some show support/resistance, some are trend indicators and yet others are oscillators) is difficult for most traders.

Even professionals are sometimes unsure exactly what rules to follow to maximize profits.

Ichimoku Method 2This is where we at BinaryOptionsExplained.com come in. We have rigorously tested every permutation of parameters and trading rules from Ichimoku, and have come up with an extremely fine-tuned, noise-free signal.

The signal is particularly strong at determining ‘new trends‘.

Take a look at the 4 hour chart of USDJPY below from the late July to mid August this year

Here is a summary of the benefits of our Ichimoku signal:

  1. Noise free and very high winrate from rigorous backtesting of all parameters and rules
  2. Applicable to all assets.
  3. Applicable to all timeframes.
  4. Automatic take profit and stop loss generation from the signal itself – your risk is always capped

You can’t afford to miss out of the power of the Japanese cloud for your trading! So, sign-up to our newsletter for our limited-time only; 100% FREE binary options signals.


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