As the markets stand on newly minted bull legs I thought it would be a good time to take a look at some trend spotting using Ichimoku cloud.

There were some key signals I noticed back in Jan from Ichimoku that indicated a shift to bear markets.

Tenkan-Sen (conversion line)
Turned to upside. Crossing over the Kijun-Sen (Baseline) can be used as a buy signal.
Be mindful that crossing over and back down again indicates volatility like we saw in Jan/Feb.

Kijun-Sen (Baseline)
Crossing over price indicating short term momentum signal to upside.

Chikou Span (lagging)
Attempting to cross over price. confirms trend change (bearish to bullish).

Ichimoku Cloud
Rejected the bottom of the cloud yesterday indicating strong resistance.

Entering the cloud at this point may be futile as volatility is likely to return.
A clearer path to getting through the cloud (indicating overall trend is bullish again) would be Mid September where the cloud is thinnest.

If we do enter the cloud, expect choppiness into the next set of market volatility events.

If you want to read more on upcoming market vol events check out my latest spy chart.

If you’re new to Ichimoku Cloud analysis. Visit my series on Ichimoku Cloud.


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.