Last Updated on 11 September, 2023 by Samuelsson
Ichimoku cloud is a technical indicator that shows support and resistance levels, trend direction and momentum.
This is a set of overlays that show price momentum, trend direction, and support and resistance levels. It consists of five lines and is based mostly on moving averages. Two of the lines form a cloud, which shows the direction of the trend. When the price is above the cloud, the trend is up, and if the cloud is also moving up, the uptrend is very strong. The Ichimoku Cloud is a collection of technical indicators that show support and resistance levels, as well as momentum and trend direction. It does this by taking multiple averages and plotting them on a chart.