14 — Trend & Momentum

Ichimoku Cloud#

✓ Mathematical
◆ The PatternFive lines: Tenkan-sen (9-period midpoint), Kijun-sen (26-period midpoint), Senkou Span A & B (cloud boundaries), Chikou (lagging close).

The Ichimoku Kinko Hyo ("one glance equilibrium chart") — Goichi Hosoda, 1960s Japan.

Tenkan-sen = (9-period high + 9-period low) / 2
Kijun-sen = (26-period high + 26-period low) / 2
Senkou A = (Tenkan + Kijun) / 2, plotted 26 periods ahead
Senkou B = (52-period high + 52-period low) / 2, plotted 26 ahead
Chikou = Close, plotted 26 periods back
Quick read:
• Price above cloud → bullish
• Price below cloud → bearish
• Cloud color flip → trend change
• Tenkan/Kijun cross → entry signal
• Thick cloud → strong support/resistance
Pattern bridge: Five components forming a cloud is a multi-signal consensus system — like an ensemble of metrics in ML. The cloud itself is a visual confidence interval.
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