ContentsPreface ixIntroduction xi1 – History 1Edo, candlesticks and Ichimoku Kinko Hyo 3Calligraphy 6Terminology 72 – Constructing the Cloud Charts 9Candlesticks – the foundation 11Creating Ichimoku charts 14Daily data and mid prices 14Moving averages 14Drawing the Cloud 20Chikou Span 23Example – calculations for Ichimoku construction 24Summary 263 – Interpretation of the Clouds 27Support/resistance levels 29Finessing trading positions 30Cloud thickness 30Distance between price and Cloud 31Clouds are for trending markets 33Chikou Span 34Example 1: Dax Index 38Example 2: Euro vs dollar 414 – The Three Principles 43Wave Principle 45Price Targets 59Timespan Principle 615 – Case Studies 69Study 1: FTSE100 Index 72Study 2: Short Sterling interest rate future 75Study 3: CADUSD 78Study 4: Gold 80Study 5: USDYEN 84Study 6: Dow Jones Utilities Index 866 – Option Trading with Clouds 93Cloud charts uniquely useful for options trading 95Buying Option Strategies 98Writing Option Strategies 105Conclusion 111Appendices 113Constructing Candlestick Charts 115Charting Programs 121My Approach to Technical Analysis 121My daily routine 121Recommendations 125Table of sample calculations for FTSE100 127Bibliography 129Index 131Who this book is forThe book has been written for existing users of candlestick charts who want to extend theirknowledge and techniques to include Ichimoku Cloud charts. As such, some knowledge oftechnical analysis is assumed, especially a knowledge of candlesticks (although a brief primeron candlesticks is also included in the book’s appendix).What this book coversThe book covers the history of candlestick charts - explaining the context in which theydeveloped. It then moves on to explain how in the 1940s and 1950s a journalist, with thepseudonym Ichimoku Sanjin, started refining candlestick analysis by adding a series of movingaverages. The book explains in detail how to construct Cloud charts and how to interpret them.A chapter is devoted to the advanced…