Contents

Preface       

Introduction

1  History 

Edo, candlesticks and Ichimoku Kinko Hyo   

Calligraphy      

Terminology    

2    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   

Summary        

3    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         

4  The Three Principles 

Wave Principle 

Price Targets  

Timespan Principle 

5  Case Studies  

Study 1: FTSE100 Index

Study 2: Short Sterling interest rate future       

Study 3: CADUSD       

Study 4: Gold

Study 5: USDYEN       

Study 6: Dow Jones Utilities Index

6  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            

Bibliography