☁️ What is Ichimoku?
Ichimoku is a Japanese system that shows trend direction, momentum, and support/resistance all in one chart. The "cloud" is its most distinctive feature — it gives a visual snapshot of where the stock stands.
🔵 Tenkan (blue) — Fast line
Average of the last 9 candles' high and low. Moves quickly. When it crosses above the Kijun line, it's often a buy signal.
🟡 Kijun (yellow) — Slow line
Average of the last 26 candles. Moves slowly — acts like a magnet. Price often returns to it. A great support/resistance level on its own.
🟢 Green cloud — Bullish zone
When Senkou A is above Senkou B, the cloud is green. Price above a green cloud = strong uptrend. The thicker the cloud, the stronger the support.
🔴 Red cloud — Bearish zone
When Senkou B is above Senkou A, the cloud is red. Price below a red cloud = strong downtrend. A thin cloud means weaker resistance.
🟣 Chikou (purple) — Confirmation
Today's closing price plotted 26 periods back. If it's above past prices — bullish confirmation. Below — bearish.
💡 Simple rule of thumb
Bullish = price above green cloud + Tenkan above Kijun + Chikou above past price.
Bearish = opposite of all three. When signals conflict, stay cautious — the market is undecided.