Five components: Conversion Line measuring 9-period equilibrium, Base Line measuring 26-period equilibrium, Leading Span A which is the average of both projected forward, Leading Span B measuring 52-period equilibrium, and the Cloud between Span A and B.
Used to define market regime structure across timeframes.
Not used as a signal generator in isolation.
Shows where price is relative to equilibrium and how that equilibrium is evolving.
Price above Cloud signals bullish regime.
What It Measures
Five components: Conversion Line measuring 9-period equilibrium, Base Line measuring 26-period equilibrium, Leading Span A which is the average of both projected forward, Leading Span B measuring 52-period equilibrium, and the Cloud between Span A and B.
Institutional Use
Used to define market regime structure across timeframes.
Not used as a signal generator in isolation.
Shows where price is relative to equilibrium and how that equilibrium is evolving.
Key Signals
Price above Cloud signals bullish regime.
Below Cloud signals bearish regime.
Inside Cloud signals transition or indecision.
Thick Cloud represents strong support or resistance.
Thin Cloud represents weak support that price can break through more easily.