Ichimoku Cloud 101
Ichimoku cloud is a technical indicator suitable best for longer timeframes.
It is developed to give a “single glance” idea about the structure of the market, which is also loosely the meaning of the Japanese term Ichimoku.
This single-glance market information is typically whether the market is weak, strong or possibly approaching reversal.
Ichimoku Trading Strategies
Traders typically set their entries and exits around the borders of the filled-out part of Ichimoku (The Kumo), most often with the help of other indicators.
As mentioned, Ichimoku works best on longer timeframes. The reason is that on shorter timeframes the Kumo cloud “flips” too often and the information you get from it is close to random. Still, some traders like to use Ichimoku for scalping. We believe there are better tools for that, but then whatever works for you…
Where to get Ichimoku
Ichimoku cloud is one of the default indicators available on TradingView, even with the free plan. You can find it in the public indicator library.