Ichimoku Cloud
Categories: Charts
The Ichimoku Cloud is a heavenly group of technical security indicators, using averages and data points far beyond your standard candlestick chart to try to predict the momentum of stocks, as well as support and resistance levels.
The Ichimoku Cloud isn’t introductory-level...it’s best for investors with a lot of experience under their belts who can appreciate its five lines of calculations, and the “cloud” itself.
The calculations in the Ichimoku Cloud compute what’s called a “cloud,” which is compared of prices to determine trends at a glance.
When the price is below the cloud, it means there’s a downward trend, and when the price is above the cloud, it signals an upward trend. The Ichimoku Cloud is complicated under the hood, but it’s meant to be a sophisticated “at-a-glance” type chart...one of the many alternative options to OG candlestick charts.