The Ichimoku cloud is an indicator that combines trend, support/resistance, and entry signals. It allows for a quick assessment of the market state at a glance — this is exactly how the word Ichimoku translates from Japanese.
🌥 Structure of the indicator:
🔹 Tenkan-sen (red line) — fast moving average (average over 9 periods).
🔹 Kijun-sen (blue line) — base line (average over 26 periods).
🔹 Senkou Span A and B — boundaries of the cloud (Kumo), projected forward.
🔹 Chikou Span — lagging line (price shifted back by 26 periods).
🤓 How to apply Ichimoku:
▪️ Price above the cloud — ascending trend.
▪️ Price below the cloud — descending trend.
▪️ Price inside the cloud — area of uncertainty/sideways.
▪️ Tenkan crosses Kijun from below upwards — bullish signal (and vice versa — bearish).
🧐 Application strategies:
🔹 Break of the cloud — signal to enter in the direction of the trend after a confident break of Kumo.
🔹 Crossing of Tenkan/Kijun lines — signal of momentum change.
🔹 Support/resistance by the cloud — boundaries of Kumo often act as levels.
🛍 Probability of execution:
▪️ Works great in trending markets, especially on H1 and higher.
▪️ In a sideways market, it can give false signals — price often lingers in the cloud.
✔️ Recommendations:
🔸 Works well with levels, Price Action, and volume indicators.
🔸 Don't rush — wait for a break of the cloud and confirming signals.
☝️ Remember: Ichimoku is not just a set of lines, but a comprehensive system for analyzing trend, strength, and potential entry/exit points. #Cryptonews #altcoins #trading
