Gold Spot / U.S. DollarEducation
How to Use the Ichimoku Cloud
Using the Ichimoku Cloud indicator is a great tool to determine long-term trends and occasionally trend changes.
Note on the Gold chart price stayed below both cloud boundaries from May to November 2022. Then in mid-November price decisively moved above both cloud boundary lines. The size of the price move is a main clue of potential trend changes.
In March 2023 price broke weakly below the boundary lines and reached a prior price bottom. These were clues that the potential bearish break lacked strength and was likely to fail.
From May to October 2023, we see another bear trend that failed to break above the cloud.
Then came a decisive move above the cloud. Even though price had already made a significant move up from the October 2023 bottom; it was still advantages to enter long positions on the upside break out.
The Ichimoko Cloud could help keep you on the right side of a market.
Note on the Gold chart price stayed below both cloud boundaries from May to November 2022. Then in mid-November price decisively moved above both cloud boundary lines. The size of the price move is a main clue of potential trend changes.
In March 2023 price broke weakly below the boundary lines and reached a prior price bottom. These were clues that the potential bearish break lacked strength and was likely to fail.
From May to October 2023, we see another bear trend that failed to break above the cloud.
Then came a decisive move above the cloud. Even though price had already made a significant move up from the October 2023 bottom; it was still advantages to enter long positions on the upside break out.
The Ichimoko Cloud could help keep you on the right side of a market.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.