Ichimoku Cloud: the all-in-one Japanese trend system

Ichimoku draws five lines that together show trend, momentum and support all at once — without needing other indicators.

The five lines

Tenkan-sen (conversion): midpoint of last 9 periods. Kijun-sen (base): midpoint of last 26 periods. Senkou A: average of Tenkan and Kijun, plotted 26 periods ahead. Senkou B: midpoint of last 52 periods, plotted 26 periods ahead. Chikou: today's close, plotted 26 periods back.

The area between Senkou A and Senkou B is the cloud (Kumo). The cloud is the entire story for most Ichimoku traders.

How to read the cloud

Price above the cloud = uptrend. Price below = downtrend. Price inside = no trend. Cloud thickness = strength of the regime: a thick cloud is hard to break, a thin cloud breaks easily.

Senkou A above Senkou B (green cloud) = bullish bias. Senkou B above Senkou A (red cloud) = bearish bias. A Kumo twist (the two cross) signals trend change.

How Signodex uses Ichimoku

Signodex renders Ichimoku on every chart and uses cloud position + colour as one of the trend inputs to the AI Signal. The AI characterises the configuration without instructing trades ("Price is currently above a thick green cloud; the 50-day position is constructive but RSI is approaching overbought").