Today we are going to complement our Ichimoku article with some techniques that we use in our rading staff. We hope, you’ll master indicator and integrate it in your strategies. How we’ve already said, Ichimoku is extremely powerful indicator which is able to demonstrate some hidden information of market and even predict the future prices. Never the less, we’ll give the main application that we use in our daily trading stuff.
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Kumo cloud with its Leading spans A and B can build dynamic support and resistance lines. When Kumo is above the prices and the distance between it and candles is enough, it builds very strong resistance area. If the conversion line is on the same side, resistance becomes stronger.
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When Kumo is below the prices and the distance between it and candles is enough, it builds very strong support area. If the conversion line is on the same side, support becomes stronger.
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This idea is usually added with other signals of Ichimoku (look up previous article) and another indicators and oscillators.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.