A collection of technical indicators that takes multiple averages and plotting them on a chart. This displays support and resistance levels in addition to momentum and trend direction. These figures when plotted form a “cloud,” which is used to predict where a price may find support or resistance levels in the future. When a price is beneath the cloud, the trend is down. When it is above the cloud, the trend is up. Traders use this to determine areas of support and resistance.
Ichimoku Cloud
Market Terms
We don't know everything about the markets. We're just devoted to learning. Taken from those smarter than ourselves, here's how we define Ichimoku Cloud.