The trend is downward when price is below the Cloud. The Cloud is green when Senkou Span A is above Span B. P 500 index is plotted on a weekly chart with Ichimoku Cloud. Price above the Cloud indicates an up-trend. Cloud indicates the trend is firmly established.
Again, the green cloud indicates an established trend. Example 2 Etrade Financial Corporation is plotted on a daily chart with Ichimoku Cloud. The green cloud indicates an established trend. In a Strong Trend How to identify a strong trend: the blue line does not cross below the red. Example 3 Netflix is plotted on a weekly chart with Ichimoku Cloud.
Enter when Price dips below and then closes back above the blue line. Price, that is a long-term buy signal, while a cross below Price is a long-term sell signal. Ichimoku Cloud Setup Select Indicators and Ichimoku Cloud in the left column of the Indicator Panel. Ichimoku Cloud Colors Open the legend by clicking “L” on the toolbar or typing “L” on your keyboard. Adjust individual colors by selecting the color patches next to each indicator line in the legend. Learn how to manage your market risk. Trading and the Economy, as well as new software updates.