The Ichimoku Cloud is a versatile indicator that defines support and resistance, identifies trend direction, gauges momentum and provides trading signals. When stocks close above the Ichimoku Cloud a buy signal is generated. Lets look at the FCX 3/1/16 close above the cloud.
The best Ichimoku Cloud buy signals occur after the stock has consolidated inside the cloud for over 5 days. FCX had a nice 9 day sideways consolidation inside the cloud before closing above it. FCX had a nice rally the next 3 days from $7.76 to $10.50, a 35% gain.
Each day after the market close, we run multiple custom designed scanning algorithms that provide stocks for the next trading day swing trade list. If you would like to become a member of our swing trade service, the membership options are listed below.
Here are the stocks that moved above the Ichimoku Cloud on 10-24-2016 for trading on 10-25-2016
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