Ichimoku Cloud

The Ichimoku Cloud is a technical analysis tool used by traders to assess market trends and potential support or resistance levels. It consists of five components: the Leading Span A and B form a shaded "cloud" that shows the overall trend direction; the Conversion Line and Base Line indicate short- and medium-term momentum; and the Lagging Span confirms trend direction by comparing current prices to past data. When the price is above the cloud, it's a bullish sign; below, bearish. The cloud also highlights areas of support or resistance, helping traders make informed decisions about entry and exit points.