The Ichimoku Cloud is an integrated trend indicator.
It allows to identify both the direction of a price and the strength of a trend.
The indicator consists of 5 lines similar in operation, but with different types of moving averages.
With this structure, it generates several types of signals at once to help find market entry points with high accuracy.
The first type of Ichimoku Cloud signals
The Ichimoku Cloud generates 3 types of signals. The first and basic is the intersection of the Tenkan Sen and Kijun Sen lines.
When the Tenkan Sen crosses the Kijun Sen upwards from below, it likely indicates a rise.
The shape that these lines form is called a “golden cross”.
If the Tenkan Sen crosses the Kijun Sen downwards from above, it likely indicates a fall.
The shape formed when the lines intersect this way is called a “dead cross”.
We recommend using standard periods and an offset.
As for style settings, the Tenkan Sen and Kijun Sen lines can be highlighted with brighter colors or their thickness can be increased.
In the majority of cases, a trade is opened when these lines intersect.
The more noticeable they are, the easier it is to read their signals.
The images and the points were put from olymptrade.com.