Trends/Trend strength and direction

Ichimoku cloud

A shaded band drawn ahead of price from two midpoint averages.

Trend strength and directionBest on 6M, 1YAlso called Kumo, Ichimoku Kinko Hyo

Illustration of the Ichimoku cloud shape. It is a sketch, not real price data.

What it shows

Goichi Hosoda's Ichimoku system draws five lines. The cloud (kumo) is the area between Senkou Span A and Senkou Span B, both shifted 26 bars into the future. Span A is the average of the 9-bar and 26-bar midpoints. Span B is the 52-bar midpoint.

Price above the cloud, in the cloud or below it is a state we label.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

Tenkan = midpoint of the 9-bar high and low.
Kijun = midpoint of the 26-bar high and low.
Span A = (Tenkan + Kijun) ÷ 2, shifted 26 bars ahead. Span B = 52-bar midpoint, shifted 26 ahead.
Shade between Span A and Span B.

Starting values: Tenkan 9; Kijun 26; Span B 52; Shift 26. These are proposed and will be tuned on real price data before launch.

How to read it

The shaded band is the cloud.
Price is above the cloud.
The cloud is drawn ahead of today.

Status labels you may see

Label	What it means
Above the cloud	Close above both spans.
In the cloud	Close between the spans.
Below the cloud	Close below both spans.

What cancels it

Nothing cancels it.

What traders check next

The cloud's thickness.
Tenkan and Kijun position.
Whether the cloud color has flipped.

Limits

Complex and with many lines.
Parameters were designed for Japanese markets of the 1930s.
Lags.

Try it in forecastviz

Open any ticker and choose Trend strength and direction → Ichimoku cloud in the left menu.
Switch between 6M, 1Y to see how the picture changes.
Compare with Tenkan-Kijun cross and Kumo twist on the same chart.

Open on a ticker

Questions

Why shift forward?

Hosoda wanted a picture of future support and resistance zones.

Are the settings fixed?

Most use 9, 26, 52.