Focusing solely on the indicator would mean missing the bigger picture that the price was under strong long-term selling pressure. Other classic accelerometers can also be used with the cloud to provide clearer buy and sell signals. This is not only due to familiarity, but also to their approach and the indicators they use to measure the key level of these pairs Cloud.

Traders can identify the trend with cloud service and then use classic impulse oscillators to detect overloaded or over-sold conditions. The picture shows that the price is falling. Each line is the average between the peak and the chute over a given span. The screenshot below shows that by adding RSI and looking for RSI differences, it is possible to identify high probability reversals. The use of the Xtrade Australia comes perfect.

  • Adding the Cloud Indicator to the graph does the calculations for you, but if you want to calculate it manually, here are the steps. You can use clouds in two ways. The interesting point is that the equilibrium lines actually correspond to a 50% Fibonacci retracement. Best Stochastic Trading Strategy, Stochastic Pop is an event where the price breaks and continues. What do you think? Make sure the conversion line moves above the baseline, especially when the price is above the cloud. During the Crossover, the Chikou Span is under the cloud. So far, you need to care more about how it works in the market than about sustainability. For example, the differences between MACD and RSI help detect potential reversals and control exit.

Direction of price behavior

Third, the downward signal triggers as prices turn and move below the conversion line. The neutral bear signal is recorded when, within the cut-off time between two Senenkas, prices are within Rubber until next time. If you are trading in the cloud and blue KijunSen, the chart can be set to look like this: However, you should always consider market momentum and overall price behavior.