Ichimoku Cloud
Trend
- What it shows
A set of five lines and a shaded cloud that show trend direction, momentum and areas of support and resistance in one view.
- How it is built
The conversion and base lines are the midpoints of the highest high and lowest low over 9 and 26 bars. The two cloud edges are projected 26 bars ahead, and the lagging span is the close shifted back 26 bars.
Default: Conversion line 9, base line 26, leading span B 52, lagging span 26.
- How traders read it
- Price above the cloud is read as bullish, below it as bearish, inside it as unclear.
- The conversion line crossing the base line is a short-term signal.
- A thick cloud is a stronger area of support or resistance than a thin one.
- History
Developed by the Japanese journalist Goichi Hosoda, who wrote as Ichimoku Sanjin, and presented to the public in the late 1960s.
Goichi Hosoda, late 1960s
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