Ichimoku Cloud
Trend
- What it shows
Ichimoku combines conversion and base lines, a cloud and a lagging span. Its lines compare price ranges over different periods.
- 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.
- How to use 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 thicker cloud means the two leading spans are farther apart.
- 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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