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Technical indicator
Ichimoku Cloud: The Five Lines and What the Cloud Shows
The Ichimoku Cloud, also called Ichimoku Kinko Hyo, is a chart overlay with five lines. Goichi Hosoda published it in his 1969 book. The shaded cloud is formed by Senkou Span A and Senkou Span B, which are plotted 26 periods ahead. The indicator is calculated from past prices, so it describes the market rather than predicting it.
In brief
What is the Ichimoku Cloud?
Ichimoku Kinko Hyo draws five lines and a shaded cloud on the price chart. This guide sets out each line, its formula and default period, and the limits that its sources state.
Key takeaways
- The Ichimoku Cloud has five lines: Tenkan-sen, Kijun-sen, Senkou Span A, Senkou Span B and Chikou Span.
- The standard periods are 9, 26 and 52, with a 26-period displacement, as StockCharts and the MQL5 sample inputs state.
- Tenkan-sen, Kijun-sen and Senkou Span B are midpoints of a highest high and lowest low. Chikou Span is a closing price plotted 26 periods back.
- The cloud is the area between Senkou Span A and Senkou Span B, and its shading depends on which span sits higher.
- The indicator is built from past prices. TradingView's article describes it as rooted in historical data and says nothing in it calculates anything predictive for future market trends.
What the Ichimoku Cloud is and where it comes from
The Ichimoku Cloud is a chart overlay, also written Ichimoku Kinko Hyo. StockCharts describes it as developed by the journalist Goichi Hosoda and published in his 1969 book. StockCharts also calls the cloud the Kumo.
The overlay is drawn on the price chart itself, and every line is calculated from the same bars as the price. If you are new to the wider subject, start with what is trading, then return here for the Ichimoku-specific parts.
The five lines and their formulas
Ichimoku has five lines. Three are midpoints of a highest high and a lowest low over a set number of periods. Senkou Span A averages two of the others. Chikou Span is simply the closing price moved back in time. A period is one bar on the chart you are using, so nine periods on a daily chart means nine daily bars.
| Line | Formula | Plotting | What the source says it shows |
|---|---|---|---|
| Tenkan-sen (Conversion Line) | (9-period highest high + 9-period lowest low) / 2 | Current bar | The shorter of the two midpoint lines; StockCharts says it follows price action most closely. |
| Kijun-sen (Base Line) | (26-period highest high + 26-period lowest low) / 2 | Current bar | The slower midpoint line; StockCharts says it trails the faster Conversion Line. |
| Senkou Span A (Leading Span A) | (Tenkan-sen + Kijun-sen) / 2 | 26 periods ahead | The faster of the two cloud boundaries. |
| Senkou Span B (Leading Span B) | (52-period highest high + 52-period lowest low) / 2 | 26 periods ahead | The slower of the two cloud boundaries. |
| Chikou Span (Lagging Span) | The closing price | 26 periods back | Close plotted in the past. The StockCharts page gives no interpretation rule for it. |
Formulas and periods from StockCharts ChartSchool, with the 9, 26 and 52 inputs matching the MQL5 iIchimoku sample code. Verified on 10 November 2026.
The formulas are arithmetic on past bars. None of them contains a forecast, a target or a rule for entering a trade.
Ichimoku worked example: Tenkan-sen, Kijun-sen and the cloud (Example)
This is an Example with invented high and low values, not market data. Suppose the highest high of the last nine bars is 1.09200 and the lowest low is 1.08600. Tenkan-sen = (1.09200 + 1.08600) / 2 = 1.08900.
Suppose the last 26 bars have a highest high of 1.09500 and a lowest low of 1.08000. Kijun-sen = (1.09500 + 1.08000) / 2 = 1.08750. Both values are calculated on the current bar.
- Senkou Span A (Example): (1.08900 + 1.08750) / 2 = 1.08825, plotted 26 periods ahead.
- Senkou Span B (Example): the last 52 bars have a highest high of 1.10200 and a lowest low of 1.07400, so (1.10200 + 1.07400) / 2 = 1.08800, also plotted 26 periods ahead.
- Cloud width (Example): 1.08825 minus 1.08800 is 0.00025, which is 2.5 pips on a EUR/USD quote where one pip is 0.0001.
In this Example Tenkan-sen (1.08900) sits above Kijun-sen (1.08750), and Span A sits above Span B, so under the StockCharts colour convention the cloud would be green. The numbers only show how the arithmetic works. They do not show a trade signal, and a real chart will not repeat them.
How the cloud is drawn and shaded
The cloud is the area between Senkou Span A and Senkou Span B. Because both spans are plotted 26 periods ahead, the cloud at any bar was calculated 26 periods earlier. The part of the cloud that sits ahead of the price is therefore built from older bars, which is why the displacement matters when you read it.
StockCharts states that the cloud is shaded green when Span A is above Span B, and red when Span B is above Span A. The colour only shows which span is higher at that point. It does not measure how strong a move is or how likely it is to continue.
What each part is used to show
Sources describe the cloud in terms of trend and levels. TradingView says price above the cloud indicates an uptrend and price below it indicates a downtrend. StockCharts says the cloud defines support and resistance and identifies trend direction, and it adds that the cloud can provide a view of future support or resistance because it is shifted forward.
StockCharts also describes a Conversion Line and Base Line crossover as the classic signal. It says to look for signals in the direction of the bigger trend, and that the crossover can be rare in a strong trend. It also says that signals counter to the existing trend are deemed weaker. A chart reader can name the crossover, but the source does not show that it works.
The Chikou Span is closing price moved back 26 periods. It is a comparison with past prices, and no cited source states a rule for reading it. Read it as a plotted line, not as a forecast.
Trend and level tools such as support and resistance answer related questions in different ways. Tenkan-sen and Kijun-sen are midpoints of highs and lows, not averages of closes, so they differ from an exponential moving average. For the momentum side of the comparison, see what is MACD.
Default periods and what each source states
The defaults are 9, 26 and 52 periods, with a displacement of 26. The four sources cited in this page state them differently. The table shows what each one gives, so you can check the numbers against the source rather than trust a summary.
| Source | Tenkan-sen | Kijun-sen | Senkou Span B | Displacement |
|---|---|---|---|---|
| StockCharts ChartSchool | 9 periods | 26 periods | 52 periods | 26 periods |
| MQL5 iIchimoku documentation (sample inputs) | 9 | 26 | 52 | 26, from the kijun_sen shift in the sample code |
| MetaTrader 5 help (Ichimoku Kinko Hyo) | No number stated; the help page says four time intervals are used and assigns the first to Tenkan-sen | No number stated; assigned the second interval | No number stated; assigned the third interval | No number stated; the spans and Chikou Span shift by the second interval |
| TradingView support (Ichimoku Cloud) | Not stated in the article text | Not stated in the article text | Not stated in the article text | Leading Span A and Leading Span B: "plot this data point 26 periods in the future"; lagging span: closing price "26 periods in the past" |
No cited source gives a different default. The sources differ in what they state, not in the numbers. Verified on 10 November 2026.
Changing the inputs changes every line and the cloud. The MQL5 sample exposes the three periods as input parameters, which shows that they are settings, not fixed properties of the market.
Risk disclosure
- Ichimoku lines are calculated from past bars. TradingView's article states that the indicator is rooted in historical data and that nothing in it calculates a forecast of future trends.
- A price above or below the cloud describes the chart at that moment. It does not say how long the condition will last or whether price will move further.
- When the cloud moves in the opposite direction to price, TradingView says trend signals can weaken. StockCharts also notes that it is sometimes hard to determine exact Conversion Line and Base Line levels on the price chart.
- StockCharts says Conversion and Base Line crossovers can be rare in a strong trend, and that signals against the existing trend are weaker.
- This page is educational and is not personal financial advice. Trading can lose money, and the Example values are invented for arithmetic only.
RTX5 status
This guide explains the Ichimoku Cloud in general and does not describe an RTX5 feature. No RTX5 release record confirms which indicators, chart types or alerts the product includes. RTX5 is Orrnn's trading terminal and broker-technology product. Its Windows desktop client is in preview, and the web and mobile clients are planned. A Google Play listing for Android is published, but the mobile client has no approved release record yet; check the product-availability record before relying on any RTX5 feature.
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Primary references
Sources were checked on 10 November 2026. They explain market rules and concepts; they do not certify RTX5 or provide individual financial advice.
StockCharts ChartSchool: Ichimoku CloudGives the five lines and their formulas, the 9, 26 and 52 periods, the 26-period displacement, the 1969 book by Goichi Hosoda, the green and red cloud convention, and its caveats on crossover rarity and counter-trend readings. Checked 10 November 2026.MetaTrader 5 help: Ichimoku Kinko HyoDescribes each line by its time interval, including Tenkan-sen as the midpoint over the first interval and Chikou Span as the closing price shifted back by the second interval. Gives no numeric defaults. Checked 10 November 2026.MQL5 documentation: iIchimokuIts sample code sets tenkan_sen to 9, kijun_sen to 26 and senkou_span_b to 52 as inputs, and comments that the Senkou Span lines are shifted forward by kijun_sen bars. Checked 10 November 2026.TradingView support: Ichimoku CloudSays price above the cloud indicates an uptrend and price below it a downtrend, that Leading Span A and Leading Span B are each plotted 26 periods in the future and the lagging span 26 periods in the past, that the indicator is rooted in historical data, and that nothing in it calculates a predictive forecast. Checked 10 November 2026.RTX5 product availabilityThe RTX5 status record that governs any statement about RTX5 features. This guide makes no RTX5 feature claim.
Questions readers ask
What does the Ichimoku Cloud show?
It shows five lines and a shaded area on a price chart. TradingView and StockCharts describe the cloud as a way to read trend direction and areas of support and resistance. It is calculated from past bars. The lines do not show a forecast, and the chart does not state how long a reading will last.
Who created the Ichimoku Cloud?
StockCharts states that the journalist Goichi Hosoda developed the indicator and published it in his 1969 book. The indicator is also called Ichimoku Kinko Hyo, and StockCharts calls the cloud itself the Kumo. The MetaTrader 5 help page is titled Ichimoku Kinko Hyo, the same name used in this guide.
What are the default Ichimoku settings?
The standard periods are 9 for Tenkan-sen, 26 for Kijun-sen and 52 for Senkou Span B, with a displacement of 26 periods. The MQL5 documentation uses these values as sample inputs. They are settings, and a chart can use other values.
Does the Ichimoku Cloud predict price moves?
No. The Ichimoku Cloud is calculated from past prices. TradingView's support article says the indicator is rooted in historical data and that nothing in it calculates a predictive forecast of future trends. A reading describes the chart, not the next move.
Is the cloud a support or resistance level?
StockCharts says the cloud can define support and resistance, and that its forward shift gives a view of future levels. A level on the cloud is still a chart reading, and price can move through it. StockCharts also says signals against the existing trend are weaker.
Can I change the Ichimoku settings?
Yes, and the MQL5 sample code treats the periods as inputs. Changing 9, 26 or 52 changes every line and the cloud, so the readings will differ from the defaults used in the sources. Record the settings you use so the chart can be compared fairly.
Keep learning
Support and resistanceHow price levels are read, which helps when you compare them with the cloud as a level.Exponential moving averageA moving average built from closing prices, to compare with Ichimoku's midpoint lines.What is MACDA trend and momentum indicator from moving averages, with its own defaults and limits.What is price action tradingReading price bars and levels without indicator lines, as a contrast to overlays.