Ichimoku Kinko Hyo (IKH) is one of forex technical indicator used by many traders in forex technical analysis. Ichimoku Kinko Hyo (IKH) is translated from Japanese as “Chart Equilibrium at a glance”.

Ichimoku Kinko Hyo is used to indicate in which direction the market is moving, its entry and exit points. It is used for determining of a market trend, support and resistance levels, and to generate signals of buying and selling. This indicator works best at weekly and daily charts.

Rather than looking at indicators and moving averages separately, Ichimoku encourage one to have a ‘macro’ view of what’s going on. From there, we can decide if we want to short, long, or even sidestep security.

It does look very complicated when a trader sees the indicator for the first time, but don’t hesitate to give this indicator a try because the complexity quickly disappears once you gain an understanding of what the various lines mean and why they are used.