Summary

I hope that you have been able to see that cloud charting is an enormously useful technique. Rather than just having one indication, the cloud chart allows you to look at the price action from several angles at the same time. This means that you can look back at the historical charts and see which indication works the best for the security you are trading, with a minimum of false signals.

Just as candlestick charting has taken over from bar charts for many traders because of its ease of use and information quality, so the Ichimoku technique will become more widely used, and possibly take over from some other Western charting. But there is still a place for Western indicators to be used in conjunction with cloud charts, and you should be very wary of trading on the basis of any signals unless you have confirmation from a separate type of indicator. The advice, as with all technical analysis, is to gather sufficient information from your different analyses to corroborate your decision to make a trade.

At the end of each module there is a quiz. You can take a quiz at any point, but we suggest you view each module before taking the quiz. When you’re ready to start the quiz, click the take quiz ‘Start’ button below -:

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