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Ichimoku Cloud

A multi-component trend indicator: support/resistance, momentum and the cloud. Ichimoku Cloud (Ichimoku Kinko Hyo) is a system of five lines: Tenkan-sen (9-period), Kijun-sen (26-period), Senkou Span A and B (which form the Kumo cloud), and Chikou Span (the lagging line). The cloud serves as a dynamic support/resistance level. Price above the cloud — an uptrend, below — a downtrend.

Formula:

Tenkan-sen = (Highest(High,9) + Lowest(Low,9)) / 2
Kijun-sen = (Highest(High,26) + Lowest(Low,26)) / 2
Senkou A = (Tenkan + Kijun) / 2 [shifted forward by 26]
Senkou B = (Highest(High,52) + Lowest(Low,52)) / 2 [shifted forward by 26]
Chikou Span = Close [shifted back by 26]
TriggerDirectionConditionDescription
Close above cloud🟢 BuyThe closing price moved above the Ichimoku cloud (bullish breakout).The closing price crossed the upper boundary of the Kumo cloud from below to above. Considered one of the strongest bullish signals in the Ichimoku system, it confirms an uptrend.
Close below cloud🔴 SellThe closing price moved below the Ichimoku cloud (bearish breakout).The closing price crossed the lower boundary of the Kumo cloud from above to below. One of the strongest bearish signals in the Ichimoku system, it confirms a downtrend.
Tenkan crosses Kijun up🟢 BuyTenkan crossed Kijun from below to above — a bullish TK cross.Tenkan-sen (the fast line) crosses Kijun-sen (the slow line) from below to above. A bullish TK Cross: a buy signal. The signal is stronger when price is above the Kumo cloud.
Tenkan crosses Kijun down🔴 SellTenkan crossed Kijun from above to below — a bearish TK cross.Tenkan-sen crosses Kijun-sen from above to below. A bearish TK Cross: a sell signal.
Enter uptrend🟢 BuyThe indicator entered an uptrend.Fires when a trend indicator (ADX/DMI, Ichimoku, Supertrend, etc.) signals the start of an uptrend.
Enter downtrend🔴 SellThe indicator entered a downtrend.Fires when a trend indicator (ADX/DMI, Ichimoku, Supertrend, etc.) signals the start of a downtrend. The specific condition depends on the indicator.
ParameterTypeDefaultRange / Values
Threshold (Enter downtrend, Enter uptrend)float500-100