When price is above the Ichimoku cloud:

Bullish signal. Price above the cloud indicates a bullish trend in the Ichimoku system.

Ichimoku Cloud

The all-in-one trend system from Japan

Ichimoku Kinko Hyo provides trend direction, support/resistance, and momentum in one indicator.

Components: - Tenkan-sen (9-period): Conversion line, fast signal - Kijun-sen (26-period): Base line, trend confirmation - Senkou Span A & B: Form the cloud (kumo) - Chikou Span: Lagging line for confirmation

Signals: - Price above cloud = bullish, below = bearish - TK cross above cloud = strong buy - Kumo twist = trend change signal - Chikou above price = bullish confirmation

Pro tip: Ichimoku works best on daily charts — it was designed for Japanese rice markets using daily data.

Pro tip: The cloud acts as strong support/resistance — the thicker the cloud, the stronger the zone.

Common mistake: Using Ichimoku on 1-minute charts. Better: Ichimoku was designed for daily charts. Use on 4H+ for best results..

Key takeaways

All-in-one trend indicator from Japan
Above cloud = bullish, below = bearish
TK cross = entry signal
Kumo twist = trend change

Quiz

When price is above the Ichimoku cloud: Answer: Bullish signal. Price above the cloud indicates a bullish trend in the Ichimoku system.

Educational content, not financial advice.