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--- trading_strategies:ichimoku_cloud [2023/10/09 17:40]
jayanthi [Defining the Indicators]
+++ trading_strategies:ichimoku_cloud [2023/10/09 17:44]
jayanthi [Defining the Indicators]
@@ Line 1: / Line 1: @@
 ====== Ichimoku Cloud ======
-===== Introduction =====
+===== What Is the Ichimoku Cloud? =====
-Even though the name implies one cloud, the Ichimoku Cloud is really 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." With one look, chartists can identify the trend and look for potential signals within that trend.
+Even though the name implies one cloud, the Ichimoku Cloud is really a set of indicators designed as a standalone trading system. These indicators can 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." With one look, you can identify the trend and look for potential signals within that trend.
-===== Defining the Indicators =====
+===== What Are the Ichimoku Cloud's Five Components? =====
 There are five lines on the Ichimoku Cloud chart at any given time, so let's review the indicators before looking at strategy in depth. See our ChartSchool article for [[:technical_indicators:ichimoku_cloud|a detailed article on the Ichimoku Cloud]]. The Japanese name is shown first, followed by the English translation in parentheses. This article will use the English translations.
@@ Line 23: / Line 23: @@
 On the daily chart, this line is the midpoint of the 52-day high-low range, a little less than three months. The default calculation setting is 52 periods, but it can be adjusted. This value is plotted 26 periods in the future and forms the slower Cloud boundary.
-**Chikou Span.** The chikou span, aka “lagging span,” is the current period's closing price plotted 26 days back on the chart. This line is used to show buying pressure in relation to “current” prices, possible areas of support and resistance, and trend reversals.
+**Chikou Span.** The chikou span, aka “lagging span,” is the current period's closing price plotted 26 days back on the chart. This line shows buying pressure in relation to “current” prices, possible areas of support and resistance, and trend reversals.
 ===== Strategy =====