Ichimoku: Sasaki and Hosoda

Trader's Library #47 · Technical analysis. The Japanese equilibrium system from the original sources, for advanced readers.

Author: Hidenobu Sasaki, Goichi Hosoda (Ichimoku Sanjin) · Original: Ichimoku Kinkō Hyō: Studies of the Equilibrium Chart; Hosoda vols. I–IV · Year: 1969 · Usefulness for traders: ★★☆☆☆

What it's about

Ichimoku Kinkō Hyō is a Japanese analysis system created by journalist Goichi Hosoda (pen name Ichimoku Sanjin). Translations of his volumes are available, as is Hidenobu Sasaki's study, regarded in Japan as the standard work on the method.

What it gives a trader

Ichimoku shows the balance between buyers and sellers using lines and a “cloud” and puts great weight on time cycles. For a trader it's an example of a coherent system with an original philosophy, but also a tool that takes a lot of learning.

Lessons for traders

• a system makes sense if you understand its assumptions, not just its signals
• time is a dimension of analysis, not just price
• a complex indicator doesn't mean an edge

What to watch out for

Very niche, with difficult translations. The settings were designed for daily charts of the Japanese market.

Discussion

The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →

Navigation

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Educational content, not investment advice. The book description is my own summary and assessment, not quotations. Edition details were checked in catalogues and bookshops, and where there was doubt I said so plainly.