Ichimoku Cloud Explained: Read Any Chart in One Glance (Part 1)

Summary

Bharat Jhunjhunwala introduces the Ichimoku Cloud—short for Ichimoku Kinko Hyo, translated in the video as a “one-glance chart.” The charting system is intended to show trend, momentum, support and resistance, volatility, and possible future direction in one overlay. He says it can be applied across instruments and timeframes.

This episode focuses on the system’s six components. Trading strategies are reserved for a later installment.

The six Ichimoku components

1. Tenkan-sen (TS), the fast line

   • Calculated as the midpoint of the highest high and lowest low over the previous 9 periods: (9-period high + 9-period low) ÷ 2.
   • It responds relatively quickly to price and can act like a fast trend line.
   • Unlike a moving average, it is based on the range’s highs and lows rather than closing prices. It tends to move in steps and can go flat when price makes no new highs or lows within the relevant period.

2. Kijun-sen (KS), the slower line

   • Calculated as the midpoint of the highest high and lowest low over the previous 26 periods.
   • Because it uses a longer period, it generally reacts more slowly than the Tenkan-sen and can serve as a slower reference line.
   • The speaker says a flat Kijun-sen may indicate that price is moving sideways or momentum has paused, even if a moving average still slopes upward.

3. Senkou Span A

   • Calculated as the average of the Tenkan-sen and Kijun-sen: (TS + KS) ÷ 2.
   • Plotted 26 periods ahead, creating a forward-looking reference based on past price data.
   • The speaker presents it as an indication of how the trend might look in the coming period, not as a certain forecast.

4. Senkou Span B

   • Calculated as the midpoint of the highest high and lowest low over the previous 52 periods.
   • Also plotted 26 periods ahead.
   • The speaker describes it as a slower, more stable cloud boundary that may function as support or resistance.

5. Kumo, or the cloud

   • The area between Senkou Span A and Senkou Span B.
   • In the video’s explanation, the cloud is green when Span A is above Span B and red when Span B is above Span A. Green is presented as bullish, and red as bearish.
   • The cloud lets a trader see the system’s projected trend area at a glance.

6. Chikou Span

   • The current price plotted 26 periods back.
   • The speaker uses its position relative to past price to assess momentum: if it is above past price, momentum is described as positive; if below, momentum is described as negative.
   • He also looks for “clear space” ahead of the Chikou Span. Price congestion or a barrier in its path is presented as a possible obstacle to further movement.

Ichimoku versus moving averages

The speaker says Ichimoku lines and moving averages serve different purposes; he does not claim that one is universally superior.

• Moving averages are based on closing prices and tend to form smoother lines.
• Ichimoku’s conversion and base lines use the midpoint of a high-low range. They may move in steps and stay flat until price establishes a new high or low within the measured period.
• In his interpretation, a flat Ichimoku line can be a useful visual cue that momentum has stalled, even when a moving average continues to slope.

How to read the system at a glance

The speaker’s overall framework is to consider the components together:

• Use the Tenkan-sen and Kijun-sen as short- and longer-period references for the current trend and pauses in momentum.
• Read the cloud’s color and position as a broad indication of trend direction and possible future trend conditions.
• Compare the Chikou Span with past price to assess momentum and potential obstacles.
• Treat the projected cloud as a probability-based guide derived from historical prices, not a guarantee of future movement.
• Consider the full picture—past, present, and projected trend—rather than relying on a single line.

The speaker emphasizes that viewers should first learn and practice identifying the components rather than jumping straight into trading setups. Specific strategies are promised for a later episode.

Other points in the video

• The speaker presents Ichimoku as a standalone system that can be used on stocks, indices, crypto, and commodities, and on timeframes ranging from intraday to weekly charts.
• He briefly contrasts it with using separate tools for trend, momentum, and cycles.
• A substantial section promotes his proprietary trading template and mentorship program, describing features such as breakout signals, trend and volatility readings, stock selection, and risk-related information. These are the presenter’s promotional claims, not part of the six-component Ichimoku lesson.
• He cautions against looking for shortcuts and says learning and execution require patience and practice.

Speakers and sources featured

• Bharat Jhunjhunwala — the sole speaker and presenter.
• Ichimoku Kinko Hyo — the charting system being explained.
• Dow Theory — mentioned by the presenter in connection with the idea that an established trend may continue unless it changes.
• SEBI data — invoked by the presenter while cautioning viewers about losses in futures and options; no figures or details are provided in the subtitles.
• Chart examples and the presenter’s proprietary trading template — visual and promotional material discussed by the presenter.