Ichimoku Cloud

The Ichimoku Cloud, or Ichimoku Kinko Hyo, is a technical analysis tool used to identify support and resistance trends that can generate buy and sell signals, comprising five separate lines that provide different types of information about the market.

1) Tenkan-sen: The first line, a moving average of the highest high and lowest low over the past nine periods
2) Kijun-sen: The second line, a moving average of the highest high and lowest low over the past 26 periods
3) Chikou Span: The third line, the current price plotted 26 periods behind the current time
4) Senkou Span A: The fourth line, a midpoint between the Tenkan-sen and Kijun-sen, plotted 26 periods ahead of the current time
5) Senkou Span B: A moving average of the highest high and lowest low over the past 52 periods ahead of the current time

Together, these lines form a cloud-like shape on the chart, which is why it is called the Ichimoku Cloud.

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