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PublishedUpdatedByIchimokuthree-signal alignmenttime theoryTenkan-senKijun-senSenkou spanChikou spanUSD/JPY

Is the Ichimoku Three-Signal Buy Profitable? 280 Settings Tested

Ichimoku's five lines, three-signal alignment and time theory, with 280 settings and the local-turn rate on 9, 17, 26 and other change-date counts tested on USD/JPY.

Ichimoku puts Tenkan-sen, Kijun-sen, two Senkou spans and Chikou span over the candles. The names make it look more complicated than the calculation: most of the lines are midpoints of a recent high-low range, and three of the five are shifted horizontally.

Across USD/JPY from 2022 through 2025, the standard 9/26/52 three-signal alignment made +558.1, −1,012.7, +536.0 and +1,085.2 pips on H1. Three aligned conditions did not survive all four years. The standard price/Kijun cross, by contrast, was positive in each year.

I also fixed a mechanical swing rule and measured the proposed time-theory change dates. Combining bars 9, 17, 26, 33, 42, 52, 65 and 76 produced a local-turn rate of 34.19% to 35.49% across the three timeframes. The matched dates three bars earlier or later produced 34.23% to 35.04%, so the full set added no distinct edge. Count 26 stood out on its own: 39.52% of its H1 candidates were local turns, versus 32.59% for the matched controls.

−10000+1000+2000+3000+745+769+2041+67TK+715+1140+3122+985Price/Kijun+562+10+902+683Price/cloud+558−1013+536+1085Three signalsnet pips for the year
2022202320242025H1, standard 9/26/52, exit on the opposite signal
Price/Kijun was positive in all four years. The standard three-signal alignment lost 1,013 pips in 2023 despite gains in 2022, 2024 and 2025.

What the five Ichimoku lines measure

LineStandard periodCalculationPlotted at
Tenkan-sen9(9-bar highest high + lowest low) / 2Current bar
Kijun-sen26(26-bar highest high + lowest low) / 2Current bar
Senkou Span A9 and 26(Tenkan + Kijun) / 226 bars ahead
Senkou Span B52(52-bar highest high + lowest low) / 226 bars ahead
Chikou span26Current close26 bars back

The area between Senkou A and B is the Kumo, or cloud. The usual reading is bullish above the cloud, bearish below it, and undecided inside it.

Senkou spans are not forecasts

Plotting a line 26 bars ahead does not put future prices into its calculation. The Senkou B value visible at the current x-position was calculated 26 bars ago from the 52 bars available then. The shift changes where the value is drawn, not what the indicator knows.

Bringing Chikou back to the present

Chikou plots the current close 26 bars back. Comparing Chikou with the price at its plotted position is therefore identical to comparing the current close with price 26 bars ago.

The stored Chikou values matched the close 26 bars later without a mismatch in any of the 12 timeframe/year cells. That identity is not predictive evidence; it confirms that a current close has been moved into the past. A test without look-ahead bias uses current close > close 26 bars ago at the current bar.

Do the time-theory change dates work?

Across all eight counts they matched ordinary dates. Ichimoku is broader than its five plotted lines. Its framework includes time theory, wave theory and price-observation theory. Time theory counts bars from a significant high or low. The IFTA 2025 syllabus lists 9, 17, 26, 33, 42, 51, 65 and 76, among others. Some general guides use 52 instead, so instructional sources do not agree on that count.

A candidate change date is not a directional signal or a guaranteed reversal. Some interpretations also count acceleration in the same direction or an extension in timing as change. I kept the outcome narrower here: did a mechanical local high or low occur near the scheduled bar?

The anchor and outcome were fixed before reading the results

ItemMechanical definition
AnchorThe bar is the unique highest high or lowest low among the five bars on either side; confirmed five bars later
Change-date counts9, 17, 26, 33, 42, 52, 65 and 76, counting the anchor as bar one
HitThe scheduled bar or either adjacent bar is a local high or low under the same definition
ControlThe same anchor, but three bars before and three bars after each named count
DuplicatesMultiple projections onto the same scheduled bar count once; 2022 through 2025 are also reported separately
UncertaintyA 95% interval for the difference from 5,000 month-block resamples

The anchor is known before the shortest nine-bar target. In code, inclusive counting makes the target anchor + count - 1. The primary analysis used 52, while substituting 51 was kept as a sensitivity check.

About 34% to 35% were local turns, but so were the controls

TimeframeCandidate barsCandidate local turnsCandidate turn rateControl turn rate95% interval for difference
M1563,19221,65034.26%34.23%−0.21 to +0.29 pp
H115,9235,44434.19%34.84%−1.17 to −0.13 pp
H44,1421,47035.49%35.04%−0.66 to +1.58 pp

With all eight counts active, the one-bar windows around candidates covered 96.26% to 96.73% of all candles. Almost the entire chart became a candidate, so a raw hit rate cannot show that time theory selected the changes. Replacing 52 with 51 left differences of only +0.17 pp on M15, −0.17 pp on H1 and +0.48 pp on H4.

Count 26 beat its H1 and H4 controls

Restricting the set to basic counts 9, 17 and 26 put H1 at 35.93% against 33.58%, a +2.35 pp difference with a +1.14 to +3.54 pp 95% interval. M15 differed by +0.57 pp and H4 by −0.08 pp.

Most of the H1 difference came from count 26. Across four years, 1,195 of 3,024 H1 candidates were local turns, or 39.52%. The matched 23- and 29-bar controls produced 32.59%, a +6.93 pp difference with a +5.10 to +8.75 pp interval. H4 produced 39.34% against 32.00%; M15 produced 34.61% against 34.62%.

TimeframeYearCount-26 turn rateControl turn rateDifference
H1202239.24%33.87%+5.37 pp
H1202339.97%32.46%+7.52 pp
H1202440.22%32.18%+8.04 pp
H1202538.64%31.84%+6.79 pp
H4202236.95%33.79%+3.16 pp
H4202335.64%29.53%+6.11 pp
H4202445.41%31.37%+14.04 pp
H4202538.95%33.24%+5.71 pp

Changing the anchor window to three, five or ten bars on either side left count 26 ahead by +3.99 to +7.13 pp on H1 and +3.25 to +8.64 pp on H4. This is not a test of direction, profit, acceleration or extension. It is also one result among several counts and timeframes, so a separate period and pair need to reproduce it before “count 26 predicts a reversal” is justified. Equal-interval projections, which carry the distance between past swing points forward from another swing, are not included because they require a separate rule for choosing those swing pairs.

Ichimoku settings and trading rules

In MT4 and MT5, use Insert → Indicators → Trend → Ichimoku Kinko Hyo. It draws five lines over price and fills the area between Senkou A and B. Colours vary by platform and template, so use the line names rather than colour alone.

SettingDefaultMeaning
Tenkan-sen9Bars in the conversion-line range
Kijun-sen26Bars in the base-line range; also the displacement
Senkou Span B52Bars in the slower leading-span range

Chikou has no separate period setting. The Kijun value of 26 also sets its displacement.

Four rules, including the three-signal alignment

ReadingLongShortPeriods it actually uses
Tenkan/KijunTenkan crosses above KijunTenkan crosses below KijunTenkan and Kijun
Price/KijunClose crosses above KijunClose crosses below KijunKijun only
Price/cloudClose is above the cloudClose is below the cloudAll three inputs
Three signalsTenkan above Kijun, close above cloud, and current close above the close one Kijun period agoAll three conditions reversedAll three inputs

The long state is the bullish three-signal alignment, commonly called sanyaku koten; the inverse is sanyaku gyakuten. It means all three conditions are true at once, not that three crossovers must happen on the same bar. Each position exits on the opposite signal. Price/cloud opens nothing inside the cloud, and the three-signal rule opens nothing until all three conditions agree.

Choose the reading before tuning the inputs. Changing Tenkan or Senkou B cannot affect a price/Kijun cross, and Senkou B cannot affect a Tenkan/Kijun cross.

How this was measured

ItemValue
PairUSD/JPY
Window2022-01-01 to 2025-12-31, measured as four separate calendar years
TimeframesM15, H1 and H4
Tenkan5, 7, 9, 12, 18
Kijun20, 22, 26, 30, 36
Senkou Span B40, 44, 52, 60, 72
Settings25 Tenkan/Kijun, 5 price/Kijun, 125 price/cloud and 125 three-signal: 280 per timeframe
ExitOpposite signal, using the same rule set as entry
Stops and targetsNone in the main sweep; tested separately below
Spread and fill0.3 pips fixed, filled at the close
Size0.1 lot

Every setting was also run on the first and second halves of 2025. All live settings produced both long and short trades.

Which reading held for four years?

All five H1 price/Kijun inputs stayed positive in every year. The denominator in each cell is the number of inputs that can change that reading.

TimeframeReading2022202320242025All four2025 median
M15Tenkan/Kijun20/258/2525/2524/254/25+1,315.9 pips
M15Price/Kijun4/50/55/55/50/5+541.8 pips
M15Price/cloud125/125103/125125/125125/125103/125+1,148.8 pips
M15Three signals102/12584/125125/125101/12568/125+859.7 pips
H1Tenkan/Kijun25/2519/2517/2511/257/25−35.5 pips
H1Price/Kijun5/55/55/55/55/5+1,236.6 pips
H1Price/cloud120/12557/125125/125120/12554/125+437.7 pips
H1Three signals125/1257/125110/12587/1255/125+259.4 pips
H4Tenkan/Kijun15/252/2524/253/250/25−984.0 pips
H4Price/Kijun4/50/54/54/50/5+255.8 pips
H4Price/cloud125/12548/125125/1250/1250/125−2,310.6 pips
H4Three signals125/12514/125125/1250/1250/125−2,136.8 pips

Across all four years, 103 M15 price/cloud settings, 68 M15 three-signal settings and all five H1 price/Kijun inputs stayed positive. H1 three signals fell from 125 positive variants in 2022 to seven in 2023. No H4 setting remained positive in every year.

Why does the Kijun stay flat?

It held still on roughly six bars in ten. Ichimoku lines do not average closes. Their midpoint remains unchanged until the rolling high or low changes enough to move it.

TimeframeYearTenkan unchangedKijun unchangedPrice inside cloud
M15202235.37%60.14%14.72%
M15202334.57%59.74%14.82%
M15202434.59%59.30%14.12%
M15202533.81%58.39%14.89%
H1202235.98%59.74%13.14%
H1202336.47%61.25%14.43%
H1202435.92%60.16%13.01%
H1202534.92%57.65%14.25%
H4202235.36%58.00%9.93%
H4202336.36%60.35%10.50%
H4202436.88%58.54%10.89%
H4202534.66%59.94%15.16%

Kijun was unchanged on 57.7% to 61.3% of bars across the 12 timeframe/year cells. The H1 price/Kijun rule won 26.26% of its 2025 trades, with a +67.47-pip average win against a −21.62-pip average loss.

Is last year's winner next year's?

It finished below the next year's median. Each 2024 winner was carried into 2025 on H1.

ReadingBest 2024 input2024Same input in 20252025 median
Tenkan/Kijun5/22+2,954.4 pips−152.0 pips−35.5 pips
Price/KijunKijun 20+3,224.8 pips+1,072.0 pips+1,236.6 pips
Price/cloud5/30/72+2,069.9 pips−10.3 pips+437.7 pips
Three signals9/22/72+1,736.0 pips+824.1 pips+259.4 pips

The winners from the three single-condition readings finished below their 2025 medians. The three-signal winner, 9/22/72, stayed above its median at +824.1 pips but ranked only 24th of 125 in 2025. The prior winner did not remain the winner.

How did the standard 9/26/52 do?

The three-signal rule led on both win rate and net. Standard 9/26/52 on H1 in 2025:

ReadingTradesWin rateAverage winAverage lossNet
Tenkan/Kijun27040.37%+65.67 pips−44.05 pips+67.0 pips
Price/Kijun55626.26%+67.47 pips−21.62 pips+985.3 pips
Price/cloud14135.46%+103.26 pips−49.23 pips+683.3 pips
Three signals9943.43%+103.63 pips−60.20 pips+1,085.2 pips

Price/Kijun won only about one trade in four and still made +985.3 pips. Three signals reduced activity to 99 trades and led all four readings in both win rate and net pips. Its 125-setting median was only +259.4 pips, however, so the standard input was stronger than the rule's typical tested input.

What do ADX and stops add?

The effect changed with the reading and the year. The additions below use standard 9/26/52 on H1.

ReadingAddition2024 trades and net2025 trades and net
Tenkan/KijunNone269, +2,041.0 pips270, +67.0 pips
Tenkan/KijunADX at least 2540, +1,091.3 pips39, +753.0 pips
Tenkan/Kijun50-pip stop, 100-pip target267, +2,310.8 pips260, +2,013.8 pips
Price/KijunNone483, +3,121.8 pips556, +985.3 pips
Price/KijunADX at least 2552, +251.2 pips52, +820.3 pips
Price/Kijun50-pip stop, 100-pip target451, +2,303.1 pips521, +2,264.6 pips
Price/cloudNone135, +902.4 pips141, +683.3 pips
Price/cloudADX at least 2564, −13.9 pips65, −996.8 pips
Price/cloud50-pip stop, 100-pip target395, +935.4 pips355, +1,558.2 pips
Three signalsNone105, +536.0 pips99, +1,085.2 pips
Three signalsADX at least 2553, +447.0 pips56, −590.1 pips
Three signals50-pip stop, 100-pip target309, +901.8 pips292, +1,046.0 pips

ADX improved the 2025 Tenkan/Kijun result but damaged price/cloud in both years and made three signals negative in 2025. The stop and target also reduced the 2025 three-signal result by 39.2 pips. Neither addition had one effect across every rule and year.

Which reading is most cost-sensitive?

The Tenkan/Kijun cross. Only the spread changes here, using H1 in 2025 with standard settings.

ReadingTrades0 pips0.3 pips0.6 pipsBreak-even spread
Tenkan/Kijun270+148.0+67.0−14.00.55 pips
Price/Kijun556+1,152.0+985.3+818.52.07 pips
Price/cloud141+725.5+683.3+641.05.15 pips
Three signals99+1,114.8+1,085.2+1,055.511.26 pips

The Tenkan/Kijun cross turned negative at a 0.6-pip spread. Standard periods alone do not provide enough margin to ignore the actual cost of the pair and trading session.

Notes

The figures use Formiq's backtester on USD/JPY from 2022 through 2025, with close fills and a fixed 0.3-pip spread. History starts in December 2021 so the 52-bar calculation and 26-bar displacement are ready before the first measurement window. Chikou comparisons were expressed as current close against the close 26 bars ago to avoid look-ahead bias.

Questions people ask

What are the standard Ichimoku settings?
Tenkan-sen 9, Kijun-sen 26 and Senkou Span B 52, with the leading and lagging spans displaced by 26 bars. On H1, the standard price/Kijun cross was positive in every year from 2022 through 2025.
What is the difference between Tenkan-sen and Kijun-sen?
Both are the midpoint of the period's highest high and lowest low. Tenkan uses nine bars and Kijun uses 26, so Kijun changes less often. It was unchanged from the preceding bar 57.7% to 61.3% of the time in this sample.
Do the Senkou spans predict the future?
No. They plot values already available today 26 bars to the right. The cloud shown at the current bar was calculated 26 bars ago and uses no future price.
How should Chikou span be used without look-ahead bias?
Chikou plots today's close 26 bars back. Its usable present-time form is today's close compared with the close 26 bars ago. Reading the plotted Chikou value at today's x-position would read a future close and cannot be backtested.
Which Ichimoku reading had the highest win rate?
With standard 9/26/52 on H1 in 2025, the bullish and bearish three-signal alignment had the highest win rate at 43.43% and the largest net result at +1,085.2 pips. Its 125-setting median was lower at +259.4 pips.
What is Ichimoku time theory?
It counts from significant highs or lows to look for possible change dates. With mechanical swing anchors, the eight-count local-turn rates were 34.26% on M15, 34.19% on H1 and 35.49% on H4, almost the same as matched dates three bars earlier or later.

Formiq is a free browser-based FX terminal with replay practice and no-code backtesting. Open the chart or see what the free plan includes.