O'Reilly logo

Ichimoku Charts: An introduction to Ichimoku Kinko Clouds by Nicole Elliott

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

4. The Three Principles

The next step in Ichimoku Cloud analysis.

The thorough cloud analyst looks at patterns, waves and calculates price and time targets. These three pillars of the analysis are known as the:

  1. Wave Principle
  2. Price Target
  3. Timespan Principle

They must be used simultaneously as they are fundamentally interconnected. For Western analysts much of this will be, if not familiar, then common sense.

Consolidation patterns are likely to take one of several conventional forms. Outlined below are the standard paths that Sanjin Ichimoku felt the market was most likely to follow.

Wave Principle

First, let’s look at the consolidation patterns of the Wave Principle.

Although there are many variations of these, they all have ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required