In the event that the amount or value is located inside the cloud, the operator must take different actions and look for patterns that have been explained in our Forex courses and thus achieve success. Another sign could be given when there is a mix between Tenkan Kijun Sen and Sen, meaning that if both cross is a perfect time to take action on the market. In this case, this may mean a change in trend, which could be up or down. Furthermore Senkou lines Senkou Span A and Span B, generally show an area of support or resistance, so it is a representation of different levels of support and resistance. These two lines can also show signs of possible times when the market is going to reverse, through a break in the cloud. That is the cloud formed must have a wide, which is directly related to their breaking capacity, which means that there is a reversal in the market if it breaks. The Chikou Span will provide information about the strength of the signal.
If, for example, the current price is above the cloud, and also identifies some earlier periods is above, indicate a confirmation of the trend. To complement this increases the signal strength if Chikou Span is above the baseline is Kijun. We recommend using this indicator for long periods, ie periods of 1 hour or more, as among older they are, the faithful will be the signals. Hosoda, summarized that this indicator can provide the trader three possible types of signals, which should be analyzed carefully: 1. When buying indications occur in the top of the cloud or sell signals occur below the cloud. 2. There is a buy-sell signal when the value is located within the cloud. 3. A buy signal when the data is positioned at the bottom of the cloud and there is a sell signal when the data is above the cloud.