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INDICATOR · BEGINNER GUIDE

ICHIMOKU CLOUD

Trend, support and momentum in one picture. Above a green cloud = up, below a red one = down.

◆Classic 9 / 26 / 52◆Cloud drawn 25 candles ahead◆TK crosses graded◆5-check dashboard
Ichimoku Cloud on a live chart WHAT YOU SEE · GOLD 4H · 28 OCT 123456
1The cloud: green when the market leans up, red when it leans down. Thicker cloud = stronger wall.
2Cloud ahead: the next 25 candles of cloud, drawn past the last candle with dotted edges: support or resistance waiting ahead.
3Gold line (Kijun): the middle of the last 26 candles. The main level: pullbacks often stop here.
4Blue line (Tenkan): the middle of the last 9 candles. When it crosses the gold line you get a TK cross.
5Purple line (lagging): today’s close drawn 25 candles back. Clear of price = a healthy trend.
6Markers: TK ▲/▼ crosses graded Strong, Neutral or Weak, and dots where price closes outside the cloud.

Use it in 5 steps

  1. Switch it onOpen Charts → Basic Indicators (ƒx) → tick Ichimoku Cloud. Best on 1H, 4H and daily charts.
  2. Where is price?Above the cloud: look for buys only. Below: sells only. Inside the cloud: stand aside until a candle closes outside it.
  3. Count the checksThe dashboard scores 5 signs from −5 to +5. Only trade when it says UPTREND or DOWNTREND.
  4. Enter on a pullbackIn an uptrend wait for price to dip towards the gold Kijun and turn up. A TK ▲ Strong cross confirms it.
  5. Stop beyond the cloudPut your stop loss beyond the Kijun or the cloud. A close back inside the cloud means get out.

A strong TK cross

A strong TK cross

Gold 4H, 19 Aug. Price dipped into the top of the green cloud, then closed back above it with a TK ▲ Strong cross near 4,439. Five days later gold reached 4,697.

The dashboard

The dashboard

  • The verdict sums 5 checks: price v cloud, Tenkan v Kijun, lagging line, cloud ahead, price v Kijun.
  • ✓ green = bullish, ✗ red = bearish, grey dot = undecided.
  • Distance to cloud over 3 × ATR says ‘stretched’: do not chase, wait for a pullback.
  • Next twist counts the candles until the cloud ahead changes colour: the trend may be tiring.
  • The 💡 tip says in plain words what the checks add up to.

Golden rules

  • Inside the cloud = no trade. Wait for a clear close above or below it.
  • Trade with the cloud. Buys above it, sells below it; Weak crosses are a warning, not a signal.
  • Always use a stop loss and risk 1% of your account or less per trade.
  • Practise first with the Replay button: trade old candles for free.
🔔 Get told when it fires: click Alerts, choose Ichimoku Cloud and tick “TK cross up (Tenkan crosses above Kijun)” or “Price closes above the cloud”.
BEYOND THE MARKETS
beyondthemarketstrading.com · Indicator guide 27: Ichimoku Cloud
For education only, not financial advice. Ichimoku shows the trend and where support may be; it does not predict the next move. Trading carries risk.

For educational purposes only. The results in this guide come from testing on past prices. Past performance does not guarantee future results, and real spreads, slippage and delays can make results worse. Nothing here is financial advice, and trading carries a high risk of losing money. Read the risk warning.