Ichimoku Cloud (Kumo)

Formula

Tenkan = (HH₉ + LL₉)/2
Kijun = (HH₂₆ + LL₂₆)/2
Span A = (Tenkan + Kijun)/2 shifted +26
Span B = (HH₅₂ + LL₅₂)/2 shifted +26
Chikou = close shifted −26

What it's for

Trade in the direction of the cloud, use Tenkan/Kijun crosses for timing, use Chikou for confirmation.

When it fails

Price inside the cloud = no directional edge. Thin/twisting cloud = choppy market.

On the chart

Nifty 50 daily bars with Ichimoku Cloud (Kumo) pre-loaded:

Where it's used on this site

1 strategy uses Ichimoku Cloud (Kumo):