Ichimoku Cloud
Ichimoku Kinko Hyo is a versatile indicator that defines support and resistance, identifies trend direction, gauges momentum, and provides trading signals. The "Cloud" (Kumo) is its most unique feature.
Dynamic Chart Demo
* This chart uses synthetic data to demonstrate the indicator's behavior in typical market conditions.
Core Usage
Advantages
- Provides multiple data points in one glance
- Effective at identifying dynamic support/resistance
- Strong trend confirmation tool
Limitations
- Can look very cluttered and complex on charts
- Not effective in non-trending/ranging markets
- Steep learning curve for beginners
Calculation Logic
Understanding the mathematical logic behind indicators helps you interpret signals more accurately and avoid misuse in unsuitable market environments.
Common Trading Strategies
Kumo Breakout
Buy when price breaks above the cloud; Sell when it breaks below.
TK Cross
Bullish when Tenkan-sen crosses above Kijun-sen while price is above the cloud.
Best For
「Comprehensive market analysis and trend following.」
Note: Technical indicators are mathematical calculations based on historical price and volume. They should be used as part of a comprehensive trading system, not as a standalone entry signal.