Understanding Trading Crypto With Ichimoku-kinko-hyo Indicator
Hello everyone, hope you all are doing good? This is the beginning of an exciting series, which promises to be informative and also educative, do well to follow all the parts, as you will definitely gain 1 or 2 useful information from the series. In today's article we would be looking at understanding of Kumo, as well as its two lines
Ichimoku Kumo is also known as Ichimoku Cloud which was invented by a Japanese journalist called Goichi Hosoda in the 1960s. Kumo isn't an indicator as many believe but it is made up of two components out the 5 components of the Ichimoku Indicator, which are
- Tenkan-Sen
- Kijun-Sen
- Chikou Span a.k.a Lagging Span
- Senkou Span A a.k.a Leading Span A
- Senkou Span B a.k.a Leading Span B
The two components which forms the Ichimoku Kumo are Senkou Span A and Senkou Span B. The space between Senkou Span A and Senkou Span B is the Ichimoku Cloud. In other words, the space between Span A and Span B, forms the Kumo.
Let me make use of the chart to give you a visualization of what I'm talking about.
You have isolate to other Ichimoku components such as the, Tenkan-Sen, Kijun-Sen and Chikou Span, in other to be able to clearly see the Ichimoku Kumo.
As you can see from the STEEM/USDT chart above. You can clearly see how the space between Span A and Span B formed the Ichimoku Kumo.
Ichimoku Kumo is mainly used by traders to predict future resistance & support, hence, knowing the future market trends.
As you can see from the chart above. When Span A is above Span B, it means a bullish trend, that is, an uptrend market.
As you can see from the chart above. When Span A is below Span B, it means a bearish trend, that is, a downtrend market.
I hope you all found the article interesting and exciting. Do well to share your thoughts about the article in the comment section below. Thanks.
