Ichimoku Cloud Explained

Ichimoku Cloud is an 'all-in-one' style indicator that incorporates multiple elements from different technical analysis tools. It can be used to analyse any tradeable asset, from stocks, options, futures etc. The indicator is now heavily used by many Japanese trading rooms and rapidly growing in popularity worldwide. It essentially combines three indicators into a single chart so traders have multiple tests on price action. A key component of the indicator is the ‘cloud’ that acts as support and resistance. These elements allow traders to decipher the strength of trend direction.