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In practical terms, the Ichimoku technique works as an all-in-one trading system that’s ideal in its ability to filter between positive and negative market phases: When price moves above the Cloud, the major trading signal is bullish (long signal). Thus, a simple look at an Ichimoku chart should provide the Ichimoku practitioner with a nearly immediate understanding of sentiment, momentum and strength of trend. Trading Strategies. Here is a summary of some basic trading strategies that you can test out with this trend following system (using the chart above as a reference): Ichimoku is one of the trading indicators that predicts price movement and not only measures it. The advantage of the indicator is the fact that offers a unique perspective of support and resistance , representing these levels based on price action.

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