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Kumo Cloud is the main component of Ichimoku Kinko Hyo trading system. It is not only used for spotting trend reversals but for New Entries, and Stop Loss targets. The conventional tools have Supports and resistances as a single line or value, but Ichimoku gives us Kumo cloud as a range of price where Market will find it's support and resitance in the Future...
Kumo cloud is plotted 26 days ahead of the current candle, and still it baffles me, how accurate and relevant it is for future price movements.

I hope you will get a clear idea from this video, let me know if it's not clear,... in the next video we will see how all these lines, Kijun Sen, Tenkan Sen, Chikou Span, and the Kumo clouds adds up to make one of the most followed System in Japan....
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