/Ichimoku Cloud

Ichimoku Cloud

Apr 13, 2023
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In this strategy, you’ll be guided through trading with a compilation of 3 indicators.

  • 200 EMA (Exponential Moving Average) is a technical analysis tool. It’s a line showing the average price for the last 200 candles on the selected timeframe.
  • Ichimoku Cloud is a technical indicator that tells traders about the market (whether it’s bearish or bullish), support and resistance levels, and probable trend changes. In this case, we use it to measure market sentiment.
  • MACD (Moving average convergence divergence indicator) is an indicator that visualises the convergence and divergence of the lower moving averages.

Indicator settings

  1. 200 EMA


2. Ichimoku Cloud

These settings indicate the periods of line calculation. They are displayed on the price history of the instrument for the clouds' formation. In simple words, it takes different time periods where the maximum and minimum prices are added up and divided by 2.

Ichimoku clouds tell us about the local mood of the market to help us make a trading decision.


We would only use Leading Span B Length and Lagging Span inputs for our strategy out of 4 major ones.

  • Conversion Line Length is a 20-hour moving average used to smoothing price fluctuations (doesn't show up in our strategy; used to form clouds)
  • Base Line Length is a 60-hour moving average used to smoothing price fluctuations (doesn't show up in our strategy; used to form clouds)
  • Leading Span B Length is the cloud-forming green line. It shows the likely formation of price support in the future from the settlement period of 120 candlesticks.
  • Lagging Span is the number of candles leading the price to determine the likelihood of support or resistance levels in the future after 30 candles.


Applying the indicators

The signal for opening or closing a deal in this strategy is a set of signals from the indicators we have chosen.


Opening a deal

  1. A rebound from the 200-hour moving average up
  2. A moving averages crossover in the MACD indicator below the zero level
  3. The green colour of the Ichimoku cloud indicatior

Closing a deal

  1. A moving averages crossover in the MACD indicator above the zero level.
  2. The red colour of the Ichimoku cloud indicator

The indicators described in this strategy can be used in a huge number of strategies and combinations. In the case of using the described strategy with the Shiba Inu coin, we managed to earn 20% to the order.

The information in this article is not a piece of financial advice or any other advice of any kind. The reader should be aware of the risks involved in trading cryptocurrencies and make their own informed decisions. SimpleSwap is not responsible for any losses incurred due to such risks. For details, please see our Terms of Service.

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