Trend and moving averages
Ichimoku Cloud
Ichimoku is a full trend system: conversion line (9), base line (26) and a cloud (span A and B) drawn 26 candles ahead.
How to read it
- Price above the cloud = uptrend, below = downtrend, inside = no clear trend.
- Conversion line crossing above base line is a bullish signal, stronger when above the cloud.
- A thick cloud acts as stronger support or resistance.
Settings
Default 9, 26, 52, displacement 26.
Example rule to test
Rule to test: enter when the price closes above the cloud and the conversion line is above the base line.
Common mistake
Trying to read every line at once; start with price vs cloud.
Try it free on iTradeChart
For learning only. Backtests use past data and do not guarantee future results. Not investment advice.