Ichimoku Cloud
A full system: the Kumo cloud marks support/resistance and trend, while Tenkan/Kijun crosses give signals.
How to read it
Ichimoku ('one glance equilibrium chart') layers several lines plus a shaded 'cloud' (kumo) onto price. The quickest read: price above the cloud is bullish, below is bearish, and inside the cloud is undecided. A thick cloud marks strong support/resistance.
Trading signals
The fast Tenkan-sen crossing above the slower Kijun-sen while price sits above a green cloud is a strong bullish setup; the mirror below a red cloud is bearish. Price breaking out of the cloud often starts a new trend. It's a full system, so weight the confluence rather than any one line.
Parameters
Tenkan-sen and Kijun-sen periods set the fast and base lines (classic 9 / 26); Senkou Span B period sets the slower cloud edge (classic 52). Larger values give a slower, smoother system.
- Ichimoku Tenkan-sen Period
- Bars for the fast conversion (Tenkan) line.
- Ichimoku Kijun-sen Period
- Bars for the base (Kijun) line.
- Ichimoku Senkou Span B Period
- Bars for the slower cloud boundary (Span B).