Ichimoku Cloud System—Knowing the Basics
Figure 1. A chart of $SPXEW (on 12/02/2021) with the Ichimoku trading strategy Ichimoku Cloud System Ichimoku Cloud is a set of indicators designed as a standalone trading system. These indicators can be used to identify support and resistance, determine trend direction and generate trading signals. Ichimoku Kinko Hyo, the Japanese name for the technique, is translated as “one look equilibrium chart (一目均衡圖).” With one look, chartists can identify the trend and look for potential signals within that trend. For example, @Mayhem4Markets has used Ichimoku Cloud (see Figure 1 ) to analyze the trend of $SPXEW (S&P 500 equal weight) as follows: $SPXEW back in to the cloud here, neutralizing a near term downtrend potentially. Watch overhead resistance. I like using $SPXEW sometimes since it shows more about breadth (or the lack thereof) in its price action. In the opinion of @ndshah26 , he also think high of Ichimoku Cloud System : Gl...