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What Is the Ichimoku Cloud

The Ichimoku cloud is five lines made from the highs and lows of the last nine, twenty-six and fifty-two days: two midpoint lines on the price, two more pushed twenty-six days ahead with the space between them shaded as the cloud, and the close itself pulled twenty-six days back. This paper shows you the euro's five lines of 2025 drawn from real bars, the idea as a cloud pinned on a calendar date twenty-six days away, the lines on the daily chart, the five numbers for one day, and the dialog that adds it on your platform.

Difficulty
Intermediate
Reading time
6 min
Pages
8
Reviewed by
Saman Rahbar

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Five lines, and a cloud

The Ichimoku cloud is five lines made from highs and lows. The blue line is the midpoint between the highest high and the lowest low of the last nine days; the red line, of the last twenty-six. Two more midpoints — one of those two lines, one of the last fifty-two days — are drawn twenty-six days ahead of the day they were worked out, and the space between them is shaded: that is the cloud. The fifth line is the close itself, drawn twenty-six days back. Nothing in it is an average of closes.

A cloud pinned on the calendar

The picture is a cloud pinned on a calendar. The highs and lows of today are averaged into two lines, and the lines are pinned not on today's date but on the date twenty-six trading days ahead: 1 July's cloud lands on 6 August. So the cloud under any day was pinned there twenty-six days earlier, from the highs and lows of then, and the cloud running ahead of the last candle is what today's highs and lows have already fixed for the weeks to come. It is drawn ahead, and it is made of the past.

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