Friday, March 28, 2014

Ichimoku Cloud Indicator

 Kumo Cloud Indicator


Description:
The Ichimoku Cloud, also known as Ichimoku Kinko Hyo, is a versatile indicator that defines support and resistance, identifies trend direction, gauges momentum and provides trading signals. Ichimoku Kinko Hyo translates into "one look equilibrium chart".
The Cloud (Kumo) is the most prominent feature of the Ichimoku plots!;

There are two ways to identify the overall trend using the Cloud. First, the trend is up when prices are above the Cloud, down when prices are below the Cloud and flat when prices are in the Cloud. Also you can use the base line to confirm the price move: 
Bullish Signals: Price is above Cloud and Price Moves above the Base Line 
Bearish Signals:  Price is below Cloud and Price Moves below the Base Line 

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