Ichimoku Kinko Hyo explanation & Pakman
Discover how Ichimoku Kinko Hyo, together with the Pakman model, works as a complete system to identify opportunities in both falling and rising markets.
- Reading the Ichimoku cloud as support, resistance, and projection.
- Correctly interpret strong greens and candidate signals.
- Combine Entry & Exit Points with a clear stop-loss.
Revisit investment course Ichimoku Kinko Hyo
In this recorded lesson, you will discover how Ichimoku Kinko Hyo, together with the Pakman model, works as a complete and powerful system. You will learn how strong greens, entry points, cloud width, and momentum combine to form a clear trading system. Ideal for anyone looking for a clear explanation of Ichimoku Kinko Hyo without technical jargon or confusing charts.
In this lesson you will discover:
- What makes Ichimoku Kinko Hyo and Ichimoku Pro so powerful
- How the Ichimoku cloud works and what it means for your analysis
- Momentum & volatility via the speed bar
- Soil pickers & strong greens: the signals that really count
- Correctly using candidate signals (green triangle & red circle)
- Entry & Exit Points as direct buy signals in the trend
- V-bottom and stop loss: protecting capital with a clear plan
- Work with TransStock, TopLab en TransTrader for efficient selection
1. Ichimoku Kinko Hyo as a Swiss Army Knife
The classic Ichimoku Kinko Hyo indicator is for many traders the ultimate frame of reference for seeing trends, support, and resistance zones at a glance. In TransStock, we have further refined that concept into Ichimoku Pro, supplemented with the Pakman trading model.
Where other systems often show only one direction or one type of signal, this acts like a kind of Swiss army knife for your Ichimoku Kinko Hyo strategy:
- You see trend, momentum, and cloud in one clear chart.
- You receive clear visual signals (Pakman strong green, entry, exit)
- You no longer need to check five different indicators.
2. The Ichimoku Cloud: Support, Resistance, and Projection
De Ichimoku Kinko HyoThe cloud is calculated based on 9, 26, and 52 days and projected 26 days ahead. This gives you a picture not only of the current trend but also of possible future support and resistance zones.
- Narrow cloud: little historical resistance, chance of a quick breakthrough
- Wide cloud: strong support/resistance, greater chance of correction
When a stock rebounds from a drop below the cloud and breaks through a broad cloud, you often see a powerful continuation of a newly started upward trend. That is exactly the kind of movement where the Ichimoku Kinko Hyo strategy goes looking for. The projection of the cloud is important in this regard for both short-term and long-term trends.
3. Momentum & Volatility: The Speed Bar
At the top of the chart, you see a in TransStock speed bar. It measures both the volatility and the momentum of the stock and colors:
- Bright white when there is strong movement and momentum
- Blue when the price moves mainly sideways
This way, you see not only where a stock stands in the Ichimoku cloud, but also whether there is sufficient strength to carry through a movement.
4. Bodempikkers & Pakman strong greens
At the bottom of the graph is a dark gray bar, our so-called bottom pickersThat bar sometimes turns light green, and in the best situations bright green or dark green. That bright green zone is the Pakman strong green-signal.
That is the only signal in the system where you acts immediately:
- The price has corrected sharply
- The soil formation is statistically interesting
- The chance of a V-shaped recovery is increased
The big advantage? Strong greens are rare. In a large market like the US, it often involves only a handful of stocks per day. No more reviewing 300 charts, but a small, targeted list.
5. Green triangle & red dot: candidate signals
A frequently asked question among beginners is how to distinguish candidate signals from effective buy signals — the Pakman model provides a clear framework for this.
De green triangle en red ball are candidate signalsThey indicate that something interesting is happening in relation to the Ichimoku cloud, but are not in themselves a buy or sell signal.
You always combine these Ichimoku signals with:
- Chartism (horizontal support/resistance, trend lines)
- The width of the cloud
- The color of the speed bar (is there momentum?)
This way, you filter out weak situations and keep only the most interesting ones. Ichimoku Kinko Hyo setups about.
6. Entry & Exit Points within the trend
In addition to the strong greens there are also Entry Points (green arrows) and Exit Points (red arrows). Entry Points are direct buy signals within an existing trend, for example after an interim correction.
Exit points indicate when a movement has fizzled out and it may be worthwhile to take profits or potentially go short. They occur much less frequently but are particularly useful for active investors.
7. V-bottom and clear stop-loss strategy
During sharp declines, a V-shaped bottom sometimes forms. The Pakman model detects this and provides a Pakman strong green when the chance of recovery is greatest.
The stop loss is simple and objective:
- Stoploss = the most recent low usually the last 5 to 10 days
- If the price closes below that, you exit without discussion.
Because you are trading against the main trend with strong greens, is capital protection crucial. The combination of Ichimoku cloud, Pakman signal, and clear stop loss makes this model a structured and manageable one. Ichimoku Kinko Hyo strategy.
8. TransStock Standard & Elite: work efficiently with filters
The complete Ichimoku Pro and Pakman system is available from TransStock StandardThis allows you to see all signals directly on the chart: cloud, velocity bar, bottom pickers, strong greens, Entry, and Exit.
Do you want those signals too? automatic filtering via TopLab or TransTrader, then you choose TransStock Elite. Then you can, for example:
- List all of today's Pakman strong greens in one place
- Filter by stocks above or below the Ichimoku cloud
- Combining with other criteria (volume, sector, trend, etc.)
Key concepts from this lesson
- Ichimoku Kinko Hyo
- Japanese indicator that literally means “equilibrium at a glance”. It combines trend, momentum, and support/resistance in a single chart, with the cloud as the central building block.
- Kumo (Ichimoku cloud)
- The zone between two moving lines, calculated at 9, 26, and 52 periods and projected 26 days ahead. The cloud acts as dynamic support or resistance; its width indicates the strength of that zone.
- Pakman strong green
- The strongest signal within the Pakman trading model: a bright green bottom picker following a sharp correction with statistically interesting bottom formation. The only signal that is traded immediately.
- Candidate signal
- Green triangle or red dot on the chart. An attention signal that only leads to action after confirmation by chartism, cloud width, and momentum — never on its own.
- Entry & Exit Point
- Direct buy and sell signals within an existing trend, for example after an interim correction or when a movement fades out.
- V-bottom
- Sharp recovery pattern in which a sharp decline turns almost immediately into an equally steep rise. The Pakman model attempts to detect this type of bottom early.
Learn more about Ichimoku Kinko Hyo and Pakman
- Technical Analysis Trilogy – ideal for deepening your knowledge of chart and signal analysis
- Blog about the Pakman trading model in TransStock
- TransStock Advanced Features (including Pakman video)
- Or rather, a general overview first: learning to invest
Ichimoku Kinko Hyo explanation - FAQ
This publication is for educational and informational purposes only. It does not constitute an invitation to buy or sell, nor does it constitute personal investment advice.
Related videos
Multi-period stock comparison
Base100 & Peers – Discover the leaders
Relative Map Strength (RMS)
Want to learn more about technical analysis?
Check out our investment courses and build a stronger decision-making process step by step.
