Lesson 6 — Ichimoku Introduction

Ichimoku is a complete technical-analysis framework that combines trend, momentum, support/resistance, equilibrium, and timing. At first, the chart may look complex because multiple lines and the cloud appear together. But the purpose of Ichimoku is to help traders understand market context in one system.

This lesson introduces the main components of Ichimoku and explains how they work together. The cloud can help identify bullish, bearish, or uncertain market conditions. When price is above the cloud, bullish context may dominate. When price is below the cloud, bearish context may dominate. When price is inside the cloud, the market may be in transition or uncertainty.

Students learn that Ichimoku should not be reduced to one line crossing another. It is a system. The cloud, baseline, conversion line, lagging span, and future projection should be interpreted together.

Ichimoku becomes stronger when the student already understands trend, support/resistance, and market structure. It can then help with confirmation, context, and timing.

The purpose of this lesson is to make Ichimoku less intimidating and more practical.

1. Apply Ichimoku to one trending chart and one ranging chart.
2. Mark when price is above, below, and inside the cloud.
3. Write what the cloud suggests about market context.
4. Find one example where Ichimoku gives unclear signals and explain why.