Ichimoku: do you trade the cloud?

Ichimoku's five lines and the cloud pack an entire system into one indicator: trend, momentum, support and timing. The learning curve is steep, and the believers are devoted.

Ichimoku: do you trade the cloud? — support and resistance diagram
Price bouncing between support and resistance

What's your Ichimoku story?

  • the components you actually use
  • how the cloud shapes your bias
  • why you stayed with it or walked away
Ichimoku: do you trade the cloud? — trend versus range diagram
A trending market compared with a ranging one

The trend lines guide covers the structural ideas underneath.

Background: Trend lines and price channels: how to draw them and read a break

A trend line connects rising lows or falling highs. This guide covers drawing trend lines consistently, adding a channel line, and what a break does and doesn't tell you.

How many points do you need to draw a trend line?

Two swing points define the line. A third touch that holds gives it more weight, because it shows other traders are reacting to the same line.

Should trend lines use wicks or candle bodies?

Either can work, as long as you use the same method every time and don't redraw the line to fit each new candle.

Read the full guide

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