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...

I’ve pointed out during the course that technical analysis can be applied to different time frames with good effect. Cloud charts are a particularly good example of this. You can keep the same numbers and just change the...

The first signal that you should look for is the lagging line crossing the cloud, as this will confirm the change of trend. Usually the price will already have started in the countertrend, but using the lagging line instead has...

Interpretation Now we come to the essence of the Ichimoku technique. The first thing to notice is the way the price responds to the cloud. Frequently prices will turn when they hit the edge of the cloud, or sometimes they will...

Now we come to the fifth line on the cloud chart, and perhaps the simplest. It’s just the closing price line shifted backwards by 26 days or periods. Note that the cloud is shifted forwards by 26, and the lagging line is...

Now this is where it starts getting interesting, and a little different from the other things you’ve learned about technical analysis. The trick to the cloud chart is that lines are drawn but then shifted in time, as...

Turning Line The Turning Line is similar to a moving average, but calculated a little differently. It’s sometimes also called the Conversion Line. It’s based on the last nine days. Instead of taking an average of the...

Module 10 – Cloud Charts – the Ichimoku Technique Introduction It is not often that there is a significant breakthrough in technical analysis, but it seems that we are witnessing one with the recent introduction of Cloud...

A mechanical trading system that can consistently beat the market – this is the Holy Grail for some traders. The idea of automatic profits is obviously attractive, but is it possible? In short, it is, but its not easy to do...