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Technical indicator #10

Ichimoku Kinko Hyo

Ichimoku Kinko Hyo

A technical indicator born in Japan. Its key feature is the "cloud," which lets you judge at a glance whether the market is strong or weak.

Importance★★★
TypeTrend
Common settings9, 26, 52 are common
MT5（FUNDED7）Built in

1A 30-second chat

JUDITH
JUDITHThere are so many lines, it looks so messy…
JADE
JADEAt first, just checking whether the candles are above or below the cloud is enough. The nice thing about Ichimoku is that this alone shows you the trend.
JUDITH
JUDITHSo it was made in Japan!
JADE
JADEThat's right. Traders overseas use it too, under the name "Ichimoku"

2Here's how it looks

Ichimoku exampleAbove=strongTenkanBaseCloud (Senkou)
Tells you at a glance how strong or weak the market is, based on whether candles are above or below the cloud

3Just check this

1

Where price is vs. the cloud

Price above the cloud = strong, below = weak, inside the cloud = undecided

2

Conversion line and base line (Tenkan & Kijun)

When the short line crosses above the long line, it's a sign that upward momentum is building

3

Cloud thickness

The thicker the cloud, the stronger the "wall" it takes a lot of force to break through

4Reading basics

▲ Sign it may risePrice above the cloud + conversion line above the base line → a strong upward flow
▼ Sign it may fallPrice below the cloud + conversion line below the base line → a strong downward flow

Technical indicators are calculated from past price moves, so they react a little late and can be wrong (false signals). The basic rule is not to decide from just one.

5Prop firm watch-outs

When price is inside the cloud, there's no clear direction, and trades tend to hit their stop loss. At a prop firm, simply deciding "I don't trade inside the cloud" helps cut needless losses and keep more of your loss allowance.

Daily loss line (50K account) Prior day end balance $50,000 Break this = fail $47,500 5% Max loss/day $2,500 (incl. unrealized) New day: 7am winter/6am summer
Daily loss line:5% of the previous day's closing balance. Unrealized losses count too (Official FAQ）

6How to show it in MT5

These are real screens from the Android MT5 app.Swipe sideways, or use the button below to go next

MT5 step 1MT5 step 2MT5 step 3MT5 step 4
1 / 4

📱 Smartphone (iPhone & Android)

1

Tap the wavy-line icon (Indicators / インディケータ) at the top of the chart screen

2

Tap "f+" to the right of Main chart (メインチャート). (Indicators shown in the lower window open in a separate window automatically)

3

Tap "Ichimoku Kinko Hyo" in the list

4

Enter the numbers and tap Save (保存) at the top right

💻 Computer

1

In the top menu, click Insert (挿入) → Indicators (インディケータ) → Trend → Ichimoku Kinko Hyo

2

When the settings window (Parameters / パラメータ) opens, enter the numbers below

3

Tap OK to finish. You can also drag it onto the chart from the Navigator (ナビゲーター) on the left

🔧 Numbers to enter (common settings)

✓

Tenkan

9

✓

Base

26

✓

Leading Span B

52

At first, it's fine to use it as-is without changing the settings. These steps are based on the official help from MT5's developer (iPhone · Android · PC). Menu names may appear in English depending on your language settings.

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Common settings are general guides. How to show them depends on the chart software.

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