Ichimoku Cloud
A multi-line system plotting conversion and base lines, a shaded cloud projected forward, and a lagging span behind price.
Formula
Conversion Line = (9-period High + Low) / 2; Base Line = (26-period High + Low) / 2; Leading Span A = average of those two, plotted 26 periods ahead; Leading Span B = (52-period High + Low) / 2, plotted 26 periods ahead
Unit
₹
In depth
Ichimoku packs support, resistance, trend and a momentum comparison into one overlay, which is why it looks complex and why users often adopt only one part of it. The cloud is plotted 26 periods into the future, which is purely a graphical displacement of past data — nothing about it knows anything about the future, and reading it as a forecast is the standard misunderstanding. The default 9, 26 and 52 settings come from a Japanese six-day trading week and have no particular relevance to modern five-day markets. Described here as a construction; no predictive claim is made.
Worked example
A 9-period range of ₹468 to ₹536 gives a conversion line of ₹502. Plotted 26 sessions to the right of today, the cloud occupies future chart space using only prices that have already occurred.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Ichimoku Cloud” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.