Ichimoku Cloud
Original schematic showing the guide's principal visual relationships.
Formula and components
A multi-line system combining trend, momentum, projected support, and resistance.
Tenkan 9-period midpoint; Kijun 26-period midpoint; cloud spans use their average and the 52-period midpoint shifted forward.
How it works
The indicator transforms price, range, or volume observations over a selected lookback. Shorter settings react faster but create more noise; longer settings respond more slowly and emphasize the underlying regime. Always compare the reading with price structure and timeframe.
How to read it
Price above the cloud favors an upward regime, below favors downward, and inside signals uncertainty. Line alignment and cloud thickness add context.
Confirmation checklist
Use slope, price position, and agreement across more than one lookback. A trend reading is more reliable when price structure and directional strength point the same way.
Limitations and false signals
The number of components invites selective interpretation, and default periods may not fit markets that trade on different schedules.