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Ichimoku Charting and Analysis

backward. It should be noted that it is the only Ichimoku overlay that does not use

mid‐range pricing. See Figure 16.6.

The Ichimoku Cloud, or Kumo, is represented by the area bounded by Senkou

Span A and Span B. As the market rises and falls, Senkou Span A will flip above

and below Senkou Span B. The color of the cloud is of no relevance whatsoever.

Only the thickness and the angle of ascent or descent are of any importance in

cloud analysis. See Figure 16.7.

Figures 16.8 and 16.9 summarize the main three characteristics of all five

Ichimoku overlays.

Figure 16.10 displays a summary of all calculations required to construct each

of the five Ichimoku overlays.

FIgure 16.5 Senkou Span B on the Daily Bund Chart.

Source: MetaTrader 4

FIgure 16.6 Chikou Span on the Daily Bund Chart.

Source: MetaTrader 4