Classic Techniques | OCT 2000
Ichimoku Charts by Ken Muranaka
The Mountain Man Is Back, This Time In Computerized Trading Rooms Ichimoku Charts by Ken Muranaka A Japanese charting technique developed early in the 20th century is enjoying renewed popularity. Invented before World War II by a Tokyo newspaper writer who called himself ""Ichimoku Sanjin"" (a pen name meaning ""a glance of a mountain man""), ichimoku charts are becoming a popular tool for Japanese traders once more, not only in equities but also in currencies, bonds, indices, commodities, and options. Literally, ichimoku means ""one look""; a chart of this style is referred to as ichimoku kinkou-hyou — the table of equilibrium prices at a glance. Ichimoku's guidebook on the charts finally appeared in 1968, long after the newspaper writer, whose real name was Goichi Hosoda, developed the technique. All the computations involved no more than taking midpoints of historical highs and lows in various ways. Nevertheless, the completed chart presents a panoramic view of price movement. For years, Hosoda hired students to do numerous calculations (or simulations) to come up with the optimum formulas, long before personal computers or even pocket calculators were the norm. He died in 1983, but the spirit of his work is in computerized trading rooms in the form of ichimoku charts. Although he also developed some wave theories, I’ll only cover the chart style here.
by Ken Muranaka
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.