Ichimoku Cloud
A complete trend system using multiple lines and a cloud formation.
The Ichimoku Cloud is a comprehensive indicator that provides trend direction, support/resistance levels, and momentum — all in one. It consists of five lines and a colored 'cloud' that makes trend identification visual and intuitive.
Why It Matters
Ichimoku gives you a complete market picture at a glance. Price above the cloud = bullish. Below = bearish. Inside = uncertain. The cloud itself acts as dynamic support and resistance, and the various line crossovers provide entry and exit signals.
Settings Explained
Direction — Bullish, bearish, or both.
Tenkan Period — The fast line (Conversion Line) period. Standard is 9. This line reacts quickly to price changes.
Kijun Period — The base line period. Standard is 26. This represents medium-term equilibrium.
Senkou B Period — The slower cloud boundary period. Standard is 52. Defines the far edge of the cloud.
Displacement — How far forward the cloud is projected. Standard is 26. The cloud is drawn ahead of current price, giving you a future support/resistance map.
Look Back Mode — How far back to calculate.
Example Use Case
You build a trend-following strategy that enters long when price is above the cloud, the Tenkan crosses above the Kijun (bullish crossover), and the cloud ahead is green (bullish). This triple confirmation produces high-quality trend signals.
Ichimoku was designed for the daily chart. On lower timeframes, consider adjusting the periods. Some traders use 7/22/44 for intraday charts instead of the standard 9/26/52.