• Cryptocurrencies: 2118
  • Markets: 16489
  • Market Cap: $139297958831.62
  • 24h Vol: $34558823183.899

Fundamentals of Cryptocurrency Technical Analysis: Ichimoku Cloud

Alongside Volume and RSI, Ichimoku Cloud is frequently used by NouVive’s traders to conduct successful 6.7x trades. We often rely on these indicators to supplement the fundamental analysis we conduct, collectively upon which we base our Recommended Trades.

 Ichimoku Kinko Hyo is mostly referred to as the Ichimoku Cloud. It is a “complete” indicator which employs moving average data to demonstrate the trends in a particular instrument, the strength of the trend, potential areas of dynamism in terms of current and future support and resistance levels.

 

The fundamental reason our traders hold Ichimoku Cloud in such high regard is because it is a more complete and extensive iteration of Moving Averages and Exponential Moving Averages. Ichimoku Cloud goes further than Exponential Moving Averages, which merely demonstrate Moving Average crosses and possible support and resistance zones, substantially. The Ichimoku Cloud is like using Exponential Moving Averages on performance enhancing drugs. It shows more areas of support and resistance, provides breakout points, helps determine the level of confidence you should have in a position and can show short / long position targets where there is an edge-to-edge trade.

 

As cryptocurrency markets operate 24/7 we recommend altering your Ichimoku Cloud settings in TradingView as seen below.

 

The main way NouVive’s traders use Ichimoku Cloud is to judge the direction of a macro trend by looking at the instrument’s price as compared to the Kumo Cloud on a long timeframe like one day. This allows our team to judge what the current trend it, the strength of the trend and when the trend prior to it reversed. This allows our traders to make more informed predictions for the future.

 

Secondly, NouVive’s traders use Ichimoku Cloud to find confluence with already charted support and resistance areas. The way we do this is that after drawing our support and resistance lines, we overlay the Ichimoku Cloud to judge if any lines have confluence within it. The way this works is that a resistance line lining up with the top edge of the Kumo Cloud demonstrates a bullish Kumo breakout point whereas, a support line lining up with the Kijun Line will demonstrate that the support level will hold.

 

As always, you should remember that indicators are supplementary to fundamental analysis and some of NouVive’s traders have far exceeded our base x6.7 in house-returns without the aid of indicators. All the same, we recommend developing a strong grasp of at least Volume, RSI and Ichimoku Cloud to better understand the strategy behind our Recommended Trades and Crypto Watch. You should stay up-to-date with WeViveLive to continue learning and applying our specialist cryptocurrency trading knowledge.

 

Nouvive: Home of Crypto Beginners, Traders & Investors. Nouvive provides Cryptocurrency trading news, Analysis and indicators for beginners, traders and investors.

Information on these pages contain speculative statements that involves risks and uncertainties. Crypto-Assets profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell. Nouvive does not in any way guarantee that this information is free from mistakes, errors or material misstatements. It does also not guarantee that this information is of a timely nature. Crypto-Assets involve risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing or trading are your responsibility alone. For more information, please view the Risk Warning Below.

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Bitcoin (BTC)
$4027.41
73.00 RSI
-1.30%
Sell
Ethereum (ETH)
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59.00 RSI
-2.59%
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XRP (XRP)
$0.31
53.00 RSI
-1.95%
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Litecoin (LTC)
$59.17
60.00 RSI
-2.17%
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EOS (EOS)
$3.64
41.00 RSI
-2.55%
Buy
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$154.37
59.00 RSI
-3.72%
Hold
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$14.73
51.00 RSI
-3.66%
Hold
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$0.11
54.00 RSI
-4.26%
Hold
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$1.01
7.00 RSI
-0.03%
Buy
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$0.02
46.00 RSI
-2.28%
Hold
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