Here's your guide to trading with the Ichimoku Cloud indicator
Ichimoku Cloud is a widely used indicator, built by Japanese journalist Goichi Hosoda, and published in the late 1960s. This indicator uses moving averages to identify support and resistance levels. Moreover, it also throws light on price momentum and trend direction. With all these combinations, the indicator has acquired a 'cloud' methodology to identify reversal, support, and resistance levels while also facilitating the prediction of future directions. The Ichimoku Cloud comprises five lines among which two demonstrate a cloud. These include Conversion line, Base line (confirmation line), lagging line, and the cloud (includes two lines -- 'Span A' and 'Span B').