CluenexGlossary · Pro tools
Ichimoku Cloud
A Japanese system of five lines that shows trend, momentum and support in one view.
Why it matters
The conversion and base lines are midpoints of recent ranges. The two span lines, drawn 26 days ahead, form the cloud: an area of support or resistance. The lagging line is today’s close drawn 26 days back.
How to read it
Price above the cloud is an uptrend, below is a downtrend, inside is undecided. The conversion line crossing the base line is the main signal. It is busy; turn on one part at a time while learning it.
Also called: ichimoku kinko hyo, cloud
Related
In the Cluenex app, this explanation opens next to every ichimoku cloud figure, with the live reading for the stock you are looking at. Open it in Cluenex