While it’s referred to as an indicator in its own right, the Ichimoku Cloud is actually a combination of indicators based on five formulas that combine to form an equilibrium chart.
These five formulas provide a data-rich indicator that displays lines of support and resistance, trend direction, and momentum of that trend through the charting of several different moving averages on the same chart. Here’s a quick guide to understanding the Ichimoku Cloud and tips to get started using this indicator as part of your trading process.
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