It is one of the most ambiguous technical indicators. It has many adherers, as well as many sceptics. On the whole, disputes about Ichimoku system are much alike to disputes about Bill Williams system. Equally complicated, equally promising and equally few people known, who succeed using this system. On my opinion, so complicated indicator (moreover, that is expected to show trend, support and resistance at the same time) cannot bring stable profit. But, taking into consideration the fact that I can't prove that the system doesn't work, I can't insist it is useless. Perhaps, you will succeed using this system. Classical interpretation Ichimoku Kinko Hyo is meant for determination of market trend, support and resistance levels and generation of buy and sell signals. It works the best at the weekly and daily charts. Four time-frames of different length are used for defining parameters' dimension. Tenkan-sen shows an average price for the first period, detected as a sum of maximum and minimum of this period divided into two. Kijun-sen indicates an average price for the second period. Senkou Span A shows the middle of the distance between the previous two lines, moved forward by the length of the second time period. Senkou Span B shows an average price of the third period, moved forward by the length of the second time period. Chinkou Span indicates the closing price of the current bar, moved backwards by the length of the second period. Distance between the Senkou lines is dashed on the chart by another color and called "Cloud". If the price is between these lines, the market is considered as non-trend and then borders of the cloud form support and resistance levels. If the price is above the cloud, then its upper line becomes the first support level, second line - the second support level. If the price is under the cloud, then down line becomes the first resistance level and upper line - the second one. If Chinkou Span crosses the price chart from the bottom upwards, it is the signal for purchase. If from the top downwards - signal for selling. Kijun-sen ("Main line") is used as market movement ratio. If the price is higher than Kijun-sen, then prices will possibly continue rising. When the price crosses the line, then trend reverse is probable. Another way of using Kijun-sen is getting signals. Signal for purchase is generated when Tenkan-sen line intersects Kijun-sen from the bottom upwards. From the top downwards - signal for selling. Tenkan-sen ("Reverse line") is used as market trend indicator. If this line rises or falls - trend exists. When it is horizontal - market came in the channel.