Ichimoku Cloud
The Ichimoku Cloud, also known as Ichimoku Kinko Hyo, is a technical analysis tool used to identify trends and momentum in the financial markets. It is a combination of five different lines, or “clouds”, that are used to identify support and resistance levels, as well as potential entry and exit points. The Ichimoku Cloud is a powerful tool that can be used to identify trends, momentum, and potential entry and exit points in the financial markets.
History of Ichimoku Cloud
The Ichimoku Cloud was developed in the 1930s by Japanese journalist Goichi Hosoda. He spent 30 years perfecting the system before publishing it in 1969. The Ichimoku Cloud is based on the idea that price action is more important than the actual price. It uses five different lines to identify support and resistance levels, as well as potential entry and exit points. The Ichimoku Cloud is a powerful tool that can be used to identify trends, momentum, and potential entry and exit points in the financial markets.
Comparison Table
| Line | Description |
|---|---|
| Tenkan-sen | The average of the highest high and the lowest low over the past nine periods. |
| Kijun-sen | The average of the highest high and the lowest low over the past 26 periods. |
| Senkou Span A | The average of the Tenkan-sen and Kijun-sen, shifted forward 26 periods. |
| Senkou Span B | The average of the highest high and the lowest low over the past 52 periods, shifted forward 26 periods. |
| Chikou Span | The current closing price, shifted back 26 periods. |
Summary
The Ichimoku Cloud is a powerful technical analysis tool used to identify trends and momentum in the financial markets. It is a combination of five different lines, or “clouds”, that are used to identify support and resistance levels, as well as potential entry and exit points. The Ichimoku Cloud is based on the idea that price action is more important than the actual price. For more information about the Ichimoku Cloud, please visit Investopedia, TradingView, and StockCharts.
See Also
- Moving Average Convergence Divergence (MACD)
- Relative Strength Index (RSI)
- Bollinger Bands
- Fibonacci Retracement
- Stochastic Oscillator
- Average Directional Index (ADX)
- Parabolic SAR
- On Balance Volume (OBV)
- Price Volume Trend (PVT)
- Commodity Channel Index (CCI)
