Ichimoku Charts: An Introduction to Ichimoku Kinko Clouds

Ichimoku Charts: An Introduction to Ichimoku Kinko Clouds by Nicole Elliott is a foundational guide to one of the most versatile and visually intuitive tools in technical analysis. Originally developed in Japan by Goichi Hosoda (pen name Ichimoku Sanjin), the Ichimoku Kinko Hyo—or “one look equilibrium chart”—provides traders with a comprehensive view of market trends, momentum, and potential turning points.

This book brings the method to a Western audience for the first time in English. Nicole Elliott, a seasoned technical analyst with decades of experience in international financial markets, explains the origins of candlestick charting in Japan and how Ichimoku evolved into a complete trading system in the 1930s. She shows traders how to construct the Ichimoku Cloud using unique moving averages (Tenkan-sen, Kijun-sen, Senkou Span A & B, and Chikou Span) and how to interpret the interplay between price and the cloud.

The guide explores the three core principles of Ichimoku—Wave Principle, Price Targets, and Time Span Principle—giving traders a holistic way to anticipate both short-term fluctuations and longer-term market cycles. Practical case studies on global markets including the FTSE 100, USD/JPY, EUR/USD, and Gold bring the concepts to life, while a dedicated chapter demonstrates the unique applications of cloud charts in options trading.

For traders familiar with candlesticks and eager to expand their technical toolkit, this book is an essential resource to mastering Ichimoku charts and seeing markets in a new light.

✅ What You’ll Learn:

By studying Ichimoku Charts: An Introduction to Ichimoku Kinko Clouds, you will gain a deep understanding of one of the most powerful and comprehensive trading systems in technical analysis. This book will teach you:

• The history of candlesticks and the evolution of Ichimoku Kinko Hyo in Japan.
• How to construct Ichimoku charts step by step, including calculating and plotting the five components: Tenkan-sen (conversion line), Kijun-sen (base line), Senkou Span A, Senkou Span B, and Chikou Span.
• Methods for interpreting the cloud, including how to use cloud thickness, distance from price, and the Chikou Span to assess market momentum, support, resistance, and trend strength.
• Insights into the Three Principles—Wave Principle, Price Targets, and Time Span Principle—core concepts for timing entries and exits.
• How to recognize classic Japanese candlestick patterns such as dojis, hammers, engulfing patterns, and their interaction with the cloud.
• Practical case studies on major global markets like the FTSE100, Euro/Dollar, Gold, Yen, and other key instruments, showing how the Ichimoku system works across asset classes.
• Specific applications of Ichimoku in options trading, with strategies for both buying and writing options using cloud-based signals.
• Elliott’s personal approach to technical analysis, including her daily trading routines and recommendations.

By the end, you will be able to integrate Ichimoku analysis into your own trading, gaining clarity on trend direction, identifying high-probability entry points, and managing risk with precision.

📚 Table of Contents:

Chapter One – History

• Edo, Candlesticks and Ichimoku Kinko Hyo
• Calligraphy
• Terminology

Chapter Two – Constructing the Cloud Charts

• Candlesticks – the foundation
• Creating Ichimoku charts
• Daily data and mid prices
• Moving averages
• Drawing the Cloud
• Chikou Span
• Example – calculations for Ichimoku construction

Chapter Three – Interpretation of the Clouds

• Support / resistance levels
• Finessing trading positions
• Cloud thickness
• Distance between price and Cloud
• Clouds are for trending markets
• Chikou Span
• Example 1: Dax Index
• Example 2: Euro vs dollar

Chapter Four – The Three Principles

• Wave Principle
• Price Targets
• Timespan Principle

Chapter Five – Case Studies

• Study 1: FTSE100 Index
• Study 2: Short Sterling interest rate future
• Study 3: CADUSD
• Study 4: Gold
• Study 5: USD/JPY
• Study 6: Dow Jones Utilities Index

Chapter Six – Option Trading with Clouds

• Cloud charts uniquely useful for options trading
• Buying Option Strategies
• Writing Option Strategies

Conclusion

Appendices

• Constructing Candlestick Charts
• Charting Programs
• My Approach to Technical Analysis
• My Daily Routine
• Recommendations
• Table of sample calculations for FTSE100

Ichimoku Charts: An Introduction to Ichimoku Kinko Clouds By Nicole Elliott