Ichimoku cloud basics, explained in simple terms. // Ichimoku cloud trading, ichimoku cloud explained, ichimoku for beginners, ichimoku basics for the beginner, ichimoku trading, ichimoku 101 tutorial, ichimoku trading strategy, ichimoku cloud trading strategy, ichimoku cloud for beginners, ichimoku cloud indicator, ichimoku cloud breakout, ichimoku cloud day trading, ichimoku cloud trading strategy, ichimoku cloud for beginners, ichimoku cloud for dummies, ichimoku cloud 101 david moadel
David Modell I've seen many videos on
YouTube about the ichimoku clouds and
most of them are too long they have too
much complicated terminology and I think
they're going to turn off a lot of
people and so I wanted to present
something present something very quick
and simple and it's really just an
introduction but here we go let's talk
about it so this is the Yahoo daily
price chart from stockcharts.com and I
wanted to use this as an example and all
these candlesticks represent each
candlestick represents one day of price
action for yahoo stock all right so this
is the cloud and as you can see
sometimes it's green sometimes it's red
and you notice that the cloud actually
goes beyond the current days price
action and we'll talk about that later
so if the current price is above the
cloud like it is here the current
candlestick is above the cloud right now
then the direction is considered up and
that's considered bullish
if the current price is below the cloud
like it is for these candlesticks
they're all below the cloud then the
direction is down and that's considered
a bearish sign also if the cloud is
currently green like for example this is
today's candlestick and today the cloud
is green then the direction again is up
and that's considered bullish and if the
cloud is currently red like on this day
for example the cloud is colored red
then the direction is down and that's
considered bearish so for example if you
look at today's candlestick it's above
the cloud that's considered bearish I'm
sorry that's considered bullish and the
cloud itself is green and that's also
considered bullish if you look at this
candlestick on this day in December the
current candlestick is below the cloud
and that's considered bearish and the
cloud itself is colored was colored red
on this day and so that's also a bearish
sign
now what about the rest of these lines
well in addition to the general
direction of the price action the Lions
can also be interpreted as levels of
support and resistance and that that
includes all five of these lines here
one two three four five because these
two lines that form the cloud are
themselves useful as support and
resistance lines in addition to these
three other lines here when the current
price is above the various lines on the
chart those lines are considered levels
of support so for example these
candlesticks here are all above the
lines and so this would be the first
level of support and this would be the
next one and then this would be the next
one and this would be the next one when
the current price is below the various
lines on the charts those lines are
considered levels of resistance so for
example these candlesticks here are
below the lines and so the first level
of resistance would be here and the next
one will be here than this one and then
this one and then this one
the two lines that form the cloud itself
are often considered to be the strongest
support and resistance levels so it's a
big deal when the price breaks out of
the cloud all right so for example this
candlestick right here would have this
line as the strongest resistance level
and this line as the strongest support
level and when it broke out when it
broke through this strong resistance
level here as you can see it just went
up and up and up after that and so
that's a sign when it breaks out like
that now what about over here well on
the standard settings the cloud projects
support and resistance levels 26 days
ahead of the current price if this is
today's price then as you can see the
cloud itself projects 2068 26 days
beyond today's candle and so it provides
interestingly enough future support and
resistance which not a lot of indicators
do and so I think that's pretty cool
alright so this was just an introduction
but I wanted to strip away all the
complicated terminology and just give a
brief introduction so that you can
pursue further education on your own so
if you found this to be helpful please
give this video a thumbs up and leave
comments also please subscribe to my
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latest updates on my financial
educational videos and if you'd like
some help with indicators or stocks
options or just putting together a
trading or investing plan you can email
me at any time my email address is David
Modell @ gmail.com thank you so much for
watching and listening and I'll talk to
you again soon
you