Ichimoku Cloud Indicator – FX Replay Guide
The Ichimoku Cloud Indicator in FX Replay is a powerful, all-in-one trend-following tool that helps you identify trend direction, support/resistance levels, and precise trade entries. It’s especially useful when replaying historical price action to simulate and refine multi-factor strategies.
Key Components & What They Tell You:
- Tenkan-sen (Conversion Line): Fast-moving trend signal.
- Kijun-sen (Base Line): Strong trend reference point.
- Senkou Span A & B: Form the Kumo (cloud), representing future support/resistance.
- Chikou Span (Lagging Line): Validates price momentum vs. historical price.
The space between Senkou Span A & B forms the Kumo, a visual "cloud" that shifts forward in time, allowing you to see potential support/resistance levels ahead of price.
How to Trade with Ichimoku in FX Replay:
1. Identify the Trend Direction:
- Bullish: Price above cloud, Span A above Span B, Chikou above price.
- Bearish: Price below cloud, Span A below Span B, Chikou below price.
2. Use Crossovers for Entries:
- Bullish signal: Tenkan-sen crosses above Kijun-sen.
- Bearish signal: Tenkan-sen crosses below Kijun-sen.
- Stronger confirmation if these occur clearly above or below the Kumo.
3. Trade Kumo Breakouts:
- Break above cloud: Potential bullish continuation.
- Break below cloud: Possible bearish breakdown.
4. Confirm with Chikou Span:
- Chikou above current price confirms bullish momentum.
- Chikou below current price confirms bearish momentum.
Tips for Effective Use in FX Replay:
- Run simulations in Replay Mode to practice reading cloud structure dynamically.
- Combine Ichimoku with FVG zones, Order Blocks, or PO3 structure for confluence.
- Ideal on Daily, 4H, and 1H timeframes for trend traders.
