Home Glossary Ichimoku Indicator

Ichimoku Indicator

19.07.2017

The Ichimoku indicator was originally devised to analyse Japanese stock markets and is now used by traders on the Forex currency market. It is believed that the Ichimoku indicator can be used to reveal dominating market trends and to define supports and resistances. The Ichimoku is made up of five lines, two of which are Senkou span A and Senkou span B, forming the “cloud” which shows the direction of the trend. When the cloud is under the price chart the market is on the rise and when it is above the market is heading downwards. If the cloud and the graph coincide with each other, a flat presides over the market.

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