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)) / 2Kijun-sen = (Highest(High,26) + Lowest(Low,26)) / 2Senkou 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]Triggers
Section titled “Triggers”| Trigger | Direction | Condition | Description |
|---|---|---|---|
| Close above cloud | 🟢 Buy | The 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 | 🔴 Sell | The 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 | 🟢 Buy | Tenkan 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 | 🔴 Sell | Tenkan 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 | 🟢 Buy | The indicator entered an uptrend. | Fires when a trend indicator (ADX/DMI, Ichimoku, Supertrend, etc.) signals the start of an uptrend. |
| Enter downtrend | 🔴 Sell | The 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. |
Trigger parameters
Section titled “Trigger parameters”| Parameter | Type | Default | Range / Values |
|---|---|---|---|
Threshold (Enter downtrend, Enter uptrend) | float | 50 | 0-100 |
