Key Points
- The Ichimoku Cloud indicator combines trend, momentum, and support and resistance into one system.
- Ichimoku cloud crypto is most useful on higher timeframes because it was designed to read trend and balance, not fast scalps.
- Tenkan Sen and Kijun Sen meaning: Tenkan is the faster baseline and Kijun is the slower baseline, often used to judge momentum and trend bias.
- Ichimoku cloud bullish vs bearish signals explained: price above the cloud suggests bullish bias, inside the cloud suggests range or uncertainty, below the cloud suggests bearish bias.
- The cloud itself is forward-projected, which helps you visualise potential future support and resistance zones.
- The indicator works best when used as a rules-based system, not when you cherry-pick one line.
- If any terms feel unfamiliar, use the Crypto Glossary for quick definitions, then return to this lesson.
Quick Answer
Ichimoku Cloud is a technical indicator system that shows trend direction, momentum, and likely support and resistance zones using five components: Tenkan Sen, Kijun Sen, the cloud (Senkou Span A and B), and the Chikou Span. In crypto, the simplest read is: price above the cloud suggests bullish bias, price below the cloud suggests bearish bias, and price inside the cloud suggests a range or transition phase. Tenkan and Kijun help you judge momentum and trend strength, while the cloud provides forward-projected zones that often act like dynamic support and resistance.
Where This Lesson Fits
Lesson 31 taught you how to judge trend reversal vs continuation and how to use confirmation rather than pattern names. Lesson 32 introduces the Ichimoku Cloud, a full indicator system designed to keep you aligned with trend and avoid getting chopped during uncertain phases.
This lesson is part of the Technical Analysis for Beginners series. For the full lesson map and all supporting guides, visit the Technical Analysis for Beginners Hub.
What Is The Ichimoku Cloud Indicator?
Ichimoku is not one line. It is a full system.
It was designed to show:
- trend direction
- momentum
- balance versus imbalance
- dynamic support and resistance
The reason it looks complex is because it compresses multiple ideas into one chart overlay.
Ichimoku Components, The Five Parts
Ichimoku includes:
- Tenkan Sen (conversion line)
- Kijun Sen (base line)
- Senkou Span A
- Senkou Span B
- Chikou Span (lagging line)
The “cloud” is the space between Senkou Span A and Senkou Span B.
Tenkan Sen And Kijun Sen Meaning
These two lines are the core of the system.
Tenkan Sen meaning: the faster baseline… it reacts quicker to price changes and can reflect short-term momentum.
Kijun Sen meaning: the slower baseline… it reacts more slowly and often acts like a trend anchor.
A simple way to read them is:
- Tenkan above Kijun often supports bullish momentum
- Tenkan below Kijun often supports bearish momentum
- frequent crossing can reflect chop and indecision
Do not treat crosses as automatic signals. Use them inside the full system.
Ichimoku Cloud Bullish Vs Bearish Signals Explained
The cloud is where the system becomes powerful.
A practical interpretation is:
- price above the cloud… bullish bias
- price inside the cloud… transition or range
- price below the cloud… bearish bias
The cloud can also act as dynamic support and resistance.
Thicker clouds often reflect stronger resistance to price moving through. Thinner clouds can be easier to break.
What The Forward Cloud Means
Senkou spans are projected forward.
That gives you a forward-looking zone that can help you anticipate where price might react if it pulls back or rallies.
Mark:
- the cloud ahead of price can act like a map of likely friction zones
- it is not a prediction, but it is a structured reference
The Chikou Span, What It Adds
The Chikou span is price plotted backward.
It helps you see whether price is clear of past congestion.
That reaction can come from:
- Chikou being trapped inside old price action, signalling congestion
- Chikou being clear of old price action, signalling cleaner trend conditions
Many beginners ignore it, but it is useful for avoiding false trend reads.
How To Use Ichimoku Cloud In Crypto, A Beginner Workflow
Do not overcomplicate it. Use a simple checklist.
Step 1: Identify The Cloud Location
Ask: is price above, inside, or below the cloud?
This gives you the base bias.
Step 2: Check Tenkan And Kijun Relationship
Check:
- Tenkan above or below Kijun
- whether price is holding above Kijun in an uptrend or below Kijun in a downtrend
Kijun often behaves like a mean-reversion anchor.
Step 3: Check Cloud Direction And Thickness
A rising cloud can support bullish bias. A falling cloud can support bearish bias.
Thickness can hint at how difficult a cloud break may be.
Step 4: Use Multi-Timeframe Context
Ichimoku becomes cleaner when you apply the multiple timeframe approach from Lesson 28.
Mark:
- higher timeframe bias with Ichimoku
- lower timeframe behaviour around the cloud or Kijun
The goal is to avoid a lower timeframe wobble pulling you off the bigger trend.
Ichimoku Cloud Settings For Crypto TradingView
Most traders start with default settings.
Defaults are widely used, which matters because many eyes are on the same framework.
If you change settings too early, you lose that shared reference.
A safe beginner rule is:
- start with defaults
- learn how the system behaves across different market phases
- only adjust after you have months of observation
Consistency beats optimisation.
Common Ichimoku Mistakes
- using only one line and ignoring the system
- treating cloud breaks as automatic trend reversals
- using it on very low timeframes where noise dominates
- changing settings until it “fits” the chart
- ignoring whether price is inside the cloud, where false signals increase
Ichimoku is most useful when you respect the cloud as the uncertainty zone.
Mini FAQs
What is Ichimoku cloud in crypto?
It is a technical indicator system that combines trend, momentum, and dynamic support and resistance using the cloud and multiple lines.
How do you use Ichimoku cloud?
Start with price location versus the cloud, then check Tenkan versus Kijun, cloud direction and thickness, and confirm with higher timeframe context.
What do Tenkan Sen and Kijun Sen mean?
Tenkan is the faster baseline reflecting short-term momentum. Kijun is the slower baseline reflecting trend bias and mean-reversion anchor behaviour.
What are bullish vs bearish Ichimoku signals?
Price above the cloud often reflects bullish bias, below the cloud bearish bias, and inside the cloud uncertainty or range behaviour.
What are good Ichimoku cloud settings for crypto on TradingView?
Beginners can start with default settings and focus on consistency. Only adjust after you understand how defaults behave across trends and ranges.
Is Ichimoku good for beginners?
Yes, if used as a rules-based system. It can be confusing if you treat it as five separate indicators instead of one framework.
Next Lesson
In this lesson you learned what the Ichimoku Cloud indicator is, what Tenkan Sen and Kijun Sen mean, how the cloud creates a bullish, neutral, or bearish context, and how to use Ichimoku as a full system rather than a single line.
Next, Lesson 33 introduces ADX, which measures trend strength and helps you tell the difference between a strong trend and a choppy market.
For the full lesson map and all supporting guides, visit the Technical Analysis for Beginners Hub.
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Legal And Risk Notice
This content is for education and information only and should not be considered financial, legal, or tax advice. Crypto assets are volatile and high risk. You are responsible for your own research and decisions, and you should consider seeking independent professional advice where appropriate.
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