Here how you read a ichimoku cloud
1) Blue Converse line: It measures short term trend. it also shows minor support or resistance. Its very good for people involved in scalping.
2) Red Line: Its the Base line or confirmation line. it measures medium term trend
3) Lagging span or lagging line. It is used for confirmation of signals.
4) Kumo Cloud: Formed from 2 lines Span A (Green) and Span B(Red)
Observation 1:
If market price is above the conversion line( blue line), then it suggests short term uptrend and vice versa
Observation 2:
If market price is above the base line( red line), then it suggests medium term uptrend and vice versa
If the lagging span or lie is above the current price, it indicates bullishness or uptrend and vice versa
The larger the price stays below/above the Kumo Cloud, the stronger the trend.
Observation 3:
When the cloud is wide, then expected support or resistance is strong. and vice versa
NEVER TRADE INSIDE THE KUMO CLOUD
Observation 4:
When fast moving Baseline cross above the slow moving conversion line, we have a buy signal
1) Blue Converse line: It measures short term trend. it also shows minor support or resistance. Its very good for people involved in scalping.
2) Red Line: Its the Base line or confirmation line. it measures medium term trend
3) Lagging span or lagging line. It is used for confirmation of signals.
4) Kumo Cloud: Formed from 2 lines Span A (Green) and Span B(Red)
Observation 1:
If market price is above the conversion line( blue line), then it suggests short term uptrend and vice versa
Observation 2:
If market price is above the base line( red line), then it suggests medium term uptrend and vice versa
If the lagging span or lie is above the current price, it indicates bullishness or uptrend and vice versa
The larger the price stays below/above the Kumo Cloud, the stronger the trend.
Observation 3:
When the cloud is wide, then expected support or resistance is strong. and vice versa
NEVER TRADE INSIDE THE KUMO CLOUD
Observation 4:
When fast moving Baseline cross above the slow moving conversion line, we have a buy signal
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