Kumo (Cloud)

Thread by Dr Cat@DoctorCatX · Aug 25, 2024 · 15 posts · 776 words · 6 min read

Kumo (Cloud) [Ichimoku Thread #7 🧵👇]
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1/14 🇯🇵Japanese name: Kumo 🇬🇧🇺🇸🇨🇦🇦🇺English name: Cloud ➡️Meaning: Kumo is the area between SSA and SSB.
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2/14 Price relation to kumo 💪📈The further the price from the kumo, the stronger the trend. 🐂 Price above the cloud is in a bullish territory (but not necessarily in a bullish trend). 🐼 Price below the cloud is in a bearish territory (but not necessarily in a bearish trend).
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3/14 ☁️🌪️Price inside the cloud is in neutral territory and there it enters a storm/tsunami mode which is very spiky and unpredictable. Every rule has its exceptions but as a rule of a thumb, the cloud is a no trade zone. Until the price leaves the cloud with a clean breakout there is no clear picture of the market. 🐂🤜🐻 The reason for this is that because SSB is the last defense line for the trend. And bulls and bears fight very intensively as in the last battle of their life between SSB and SSA, because whoever loses this battle should get rekt.
4/15View on X
4/14 If you don't trade when: 1⃣The price is is in the daily kumo 2⃣LTF/MTF haven't covered the Ichimoku conditions for filtering fakeouts (more on that in futher lessons) 3⃣ADX is below 20 (Average Directional Index, different indicator from Ichimoku) then you will protect yourself against most of the fakeouts. You can read more about ADX here, this is another indicator not related to Ichimoku: https://www.investopedia.com/terms/a/adx.asp
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5/14 Once the price leaves the kumo, it often starts to accelerate. The reason for this is that SSB, the strongest and last support/resistance line has been overcome. That being said, not each kumo breakout is real. There are other factors to consider like the way in which the breakout happens time-wise and where is Chiko Span - these will be covered in future lessons.
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6/14 🚦 Signals: Kumo twist When SSA crosses above SSB (which is a golden cross, or a death cross if the opposite) this is a sign that buyers/sellers are in control long term. This is the "big cross" in Ichimoku as opposed to the TK cross which reflects the short and mid term situation in the market. ⚠️Warning: this signal, as well as all kumo characteristics happen 26 candles in the future because the kumo is printed in the future. This is when the signals affect the current price. Apart from that, the current kumo shape, color and signals, with the exception of kumo's thickness are irrelevant to the current price action! (At least according to the Ichimoku theory, I have discovered myself some patterns related to this, but that's another long topic probably for another thread).
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7/14 Kumo thickness B) Kumo (the kumo is printed in the future) Thick kumo means sustained trend. Thin kumo means unsustainable trend and a danger of a retrace. In practice, in crypto this is not always the case though, because crypto is too volatile and often ignores retrace warnings by going vertical. Especially when it comes to alts.
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8/14 A) Current kumo (at the current price, 26 candles later after being printed already). The thicker the current kumo, the strongest the support/resistance and the harder it's to get penetrated/crossed by the price.
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9/14 All further kumo traits refer only to the future kumo. Kumo color 🟩Green kumo (light blue on my charts) means SSA over SSB and bullish long-term bias. 🟥Red kumo (gray on my charts) means the opposite.
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10/14 🐍 Kumo length If the kumo has recently changed its color (has done a recent kumo twist just a couple of candles ago), we need to be cautious before trusting the new trend. Longer kumo gives more credibility to the new trend.
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11/14 🎢 Kumo slope 📈On an active trend the kumo is trending in the direction of the trend. 📈📉Flat kumo means range.
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12/14 One unique characteristic of the kumo is that it shows the exact support/resistance levels candle by candle 26 candles in the future. And as opposed to MAs, the difference in these S/R levels may be huge and may sharply change. This works extremely accurately thanks to the original settings and the Time Theory.
13/15View on X
13/14 Previous lessons 1. The Ichimoku TA system https://x.com/drpastet/status/1807703250189099208 2. Tenkan Sen https://x.com/drpastet/status/1810173264020328553 3. Kijun Sen https://x.com/drpastet/status/1813659904688685089 4. Real and fake TK crosses https://x.com/drpastet/status/1815295282793390287 5. SSA https://x.com/drpastet/status/1817833046088843737 6. SSB https://x.com/drpastet/status/1817833046088843737
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14/14 If you found this thread useful it could be great to like and share the original tweet at the top. I don't sell anything, I just share my knowledge for free. I don't have a lot of followers so if you think this knowledge is worth it you can help it reach more people.
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Dr Cat answered 1 question

under this thread · top answer 1 likes

@VitalySv1 asked

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Kumo (Cloud)

Thread by Dr Cat@DoctorCatX · Aug 25, 2024 · 15 posts · 776 words · 6 min read

Kumo (Cloud) [Ichimoku Thread #7 🧵👇]
1/15View on X
1/14 🇯🇵Japanese name: Kumo 🇬🇧🇺🇸🇨🇦🇦🇺English name: Cloud ➡️Meaning: Kumo is the area between SSA and SSB.
2/15View on X
2/14 Price relation to kumo 💪📈The further the price from the kumo, the stronger the trend. 🐂 Price above the cloud is in a bullish territory (but not necessarily in a bullish trend). 🐼 Price below the cloud is in a bearish territory (but not necessarily in a bearish trend).
3/15View on X
3/14 ☁️🌪️Price inside the cloud is in neutral territory and there it enters a storm/tsunami mode which is very spiky and unpredictable. Every rule has its exceptions but as a rule of a thumb, the cloud is a no trade zone. Until the price leaves the cloud with a clean breakout there is no clear picture of the market. 🐂🤜🐻 The reason for this is that because SSB is the last defense line for the trend. And bulls and bears fight very intensively as in the last battle of their life between SSB and SSA, because whoever loses this battle should get rekt.
4/15View on X
4/14 If you don't trade when: 1⃣The price is is in the daily kumo 2⃣LTF/MTF haven't covered the Ichimoku conditions for filtering fakeouts (more on that in futher lessons) 3⃣ADX is below 20 (Average Directional Index, different indicator from Ichimoku) then you will protect yourself against most of the fakeouts. You can read more about ADX here, this is another indicator not related to Ichimoku: https://www.investopedia.com/terms/a/adx.asp
5/15View on X
5/14 Once the price leaves the kumo, it often starts to accelerate. The reason for this is that SSB, the strongest and last support/resistance line has been overcome. That being said, not each kumo breakout is real. There are other factors to consider like the way in which the breakout happens time-wise and where is Chiko Span - these will be covered in future lessons.
6/15View on X
6/14 🚦 Signals: Kumo twist When SSA crosses above SSB (which is a golden cross, or a death cross if the opposite) this is a sign that buyers/sellers are in control long term. This is the "big cross" in Ichimoku as opposed to the TK cross which reflects the short and mid term situation in the market. ⚠️Warning: this signal, as well as all kumo characteristics happen 26 candles in the future because the kumo is printed in the future. This is when the signals affect the current price. Apart from that, the current kumo shape, color and signals, with the exception of kumo's thickness are irrelevant to the current price action! (At least according to the Ichimoku theory, I have discovered myself some patterns related to this, but that's another long topic probably for another thread).
7/15View on X
7/14 Kumo thickness B) Kumo (the kumo is printed in the future) Thick kumo means sustained trend. Thin kumo means unsustainable trend and a danger of a retrace. In practice, in crypto this is not always the case though, because crypto is too volatile and often ignores retrace warnings by going vertical. Especially when it comes to alts.
8/15View on X
8/14 A) Current kumo (at the current price, 26 candles later after being printed already). The thicker the current kumo, the strongest the support/resistance and the harder it's to get penetrated/crossed by the price.
9/15View on X
9/14 All further kumo traits refer only to the future kumo. Kumo color 🟩Green kumo (light blue on my charts) means SSA over SSB and bullish long-term bias. 🟥Red kumo (gray on my charts) means the opposite.
10/15View on X
10/14 🐍 Kumo length If the kumo has recently changed its color (has done a recent kumo twist just a couple of candles ago), we need to be cautious before trusting the new trend. Longer kumo gives more credibility to the new trend.
11/15View on X
11/14 🎢 Kumo slope 📈On an active trend the kumo is trending in the direction of the trend. 📈📉Flat kumo means range.
12/15View on X
12/14 One unique characteristic of the kumo is that it shows the exact support/resistance levels candle by candle 26 candles in the future. And as opposed to MAs, the difference in these S/R levels may be huge and may sharply change. This works extremely accurately thanks to the original settings and the Time Theory.
13/15View on X
13/14 Previous lessons 1. The Ichimoku TA system https://x.com/drpastet/status/1807703250189099208 2. Tenkan Sen https://x.com/drpastet/status/1810173264020328553 3. Kijun Sen https://x.com/drpastet/status/1813659904688685089 4. Real and fake TK crosses https://x.com/drpastet/status/1815295282793390287 5. SSA https://x.com/drpastet/status/1817833046088843737 6. SSB https://x.com/drpastet/status/1817833046088843737
14/15View on X
14/14 If you found this thread useful it could be great to like and share the original tweet at the top. I don't sell anything, I just share my knowledge for free. I don't have a lot of followers so if you think this knowledge is worth it you can help it reach more people.
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Dr Cat answered 1 question

under this thread · top answer 1 likes

@VitalySv1 asked

Eager)

Haha 👊

Dr Cat@DoctorCatX1 likesView on X