Ichimoku cloud for binary options - Cloud Kumo - Is This Indicator For Experienced Binary Traders Only?
What really distinguishes the Ichimoku Cloud from all other indicators is its five lines, each of which represents a specific price action. The space between two of these distinctive lines is shaded, giving the impression of a cloud, which is what most traders monitor for price action information.
The cloud is made up a red line, also known optionw the conversion line or the Tenkan-Sen. The second line is white in color.
It is known as the base lie or the Kijun-sen. The third line, also known as the leading span or the Senkou span scty stock options, is yellow in color.
The fourth line is blue in color and is known as a Senkou Span B or the leading span B.
The fifth lie is known as the lagging span or the Chickou spanwhich is green in color. This last line always trails the price movement.
The most common application of the Ichimoku indicator is identifying clouv and resistance levels. The ichimoku cloud for binary options spreads out by 26 price bars to indicate potential support and resistance levels.
When price movements are on an uptrend and experiencing a pull back, the price will go off tangent from the cloud prior fkr resuming the upward movement. Similarly, in a downward price movement, the price will go back over to the cloud and then resume with the downtrend.
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