Ichimoku Cloud
The Ichimoku Cloud is a comprehensive technical analysis tool used in financial markets to identify trends, support, and resistance levels. It consists of five lines: the Tenkan-sen, Kijun-sen, Senkou Span A, Senkou Span B, and Chikou Span. These lines help traders visualize market momentum and potential price movements over different time frames.
The cloud itself, formed by the Senkou Span A and Senkou Span B, provides a shaded area that indicates potential support and resistance zones. When the price is above the cloud, it suggests a bullish trend, while a price below the cloud indicates a bearish trend. This tool is popular among traders for its ability to provide a clear market outlook.