Chart Decoder Series: Ichimoku Cloud – Complete trading dashboard on a single chart

November 17th Chart Decoder Series: Ichimoku Cloud – Complete trading dashboard on a single chart

welcome back chart decoder seriesLet’s turn complex charting tools into simple and practical trading strategies.

Today we will be visiting Ichimoku Cloud, a Japanese trading system that allows you to see trends, momentum, and future equilibrium all at a glance.

Origin of cloud

The Ichimoku Kinko Hyo (literally translated as “equilibrium diagram at a glance”) was developed by Japanese journalist Goichi Hosoda in the 1930s.

His goal was to create an indicator that would give traders an instant overview of the market: its balance, direction, and momentum. No need to switch between tools. No guesswork required. Just one look.

Decades later, Ichimoku Kinko Hyo remains one of the most complete systems for analyzing market structure. It shows not only where the price is, but also where the price is heading.

At a glance:

• Which direction is the market trending in?
• Where are the support and resistance levels?
• What is the momentum like?
• Where prices can move Next

Understand the components

Current and future resistance zones

• Green Cloud (Span A > Span B): bullish sentiment
• Red Cloud (Span B > Span A): bearish sentiment

3. Future prediction
Unlike most indicators, the At-A-Glance Cloud predicts 26 periods into the future and shows you where support or resistance is likely to form next.

4. Crossover

Relationship between conversion and baseline reveals momentum strength and potential tipping points

• Bullish signal: The turning line (blue) exceeds the reference line (especially above the clouds)
• Bearish signal: The transition line (blue) is below the reference line (especially under clouds)

5. Check the slow line

Lagging span position checks if the trend has true follow-through

• Lagging span above price (white) = bullish confirmation
• Lagging span below price (white) = bearish confirmation

real example

According to Bitfinex Alpha 180 (published November 10, 2025), Bitcoin’s recent 21% decline from its all-time high in October is a consolidation, not a collapse. On-chain data shows that long-term holders (smart money) are not dumping Bitcoin, so a move below $100,000 does not indicate the beginning of a sell-off, but rather the formation of a new base. Instead, they rebalance their positions, taking some profits but keeping most of their holdings. Also, about 72% of all Bitcoins in circulation are still profitable at current prices, meaning most holders aren’t desperately trying to sell.

Let’s now take a look at how these fundamentals line up with the Ichimoku cloud on the BTC/USD daily chart for November 11, 2025, and whether the technical situation supports this controlled consolidation story.

price is under the cloud A red, relatively flat cloud is ahead and remains bearish reflecting the daily structure. If the price is below the cloud, sellers have an advantage.

The conversion line (104,948) is below the reference line (107,773).confirming short-term bearish momentum. The lagging line is moving around the current price levelindicating indecision in the short term. However, as we are still below the cloud, the broader trend bias remains bearish.

The cloud projection ahead is red and relatively flatranging from 106,360 to 112,578. This 6,218-point range represents the equilibrium zone that buyers and sellers are expected to contest over the coming weeks. The flatness of a cloud has an important meaning that confirms that its momentum is weak. A thick, angular cloud indicates strong directional confidence. Such flat, horizontal clouds indicate indecision. The market is not trending, it is pausing.

Looking ahead, a flat cloud top around 112,500 works out as follows: strong ceilinga definitive breakout above which the price would need to occur would be required for sentiment to turn bullish. The rally is likely to face selling pressure until BTC clears both the baseline and cloud. For now, Ichimoku’s future predictions are in line with the overall market mood. of The momentum is weak but stabledoes not accelerate downward. BTC is the so-called bearish consolidation.

Advanced Ichimoku Strategy

1. Adjusting trends and momentum

The simplest yet most effective approach is:

• Trade long when price and cloud are bullish (price is above the green cloud).
• Take a short sale trade when both are bearish (price is below the red cloud)
• Ignore signals in the cloud. It’s a fog of indecision

2. “3-point convergence” setup

The most probable trades occur when:

• The conversion line (tenkan) crosses the reference line (reference line)
• Cloud above/below price break
• Lagging span (chikou span) confirms movement

If all three match, it’s a complete, self-explanatory confirmation. This means that momentum, structure, and timing are all pointing in one direction.

3. Cloud as dynamic support/resistance

The thicker the cloud, the stronger the zone. In an uptrend, spans A and B act like soft cushions. In a downtrend, the price forms a ceiling that rebounds.

4. Multi-timeframe analysis

Confidence is strengthened when multiple timeframes match. If they disagree, it’s usually best to wait. A cloud of contradictions means opposing forces.

5. Ichimoku + Volume or RSI

• Cloud + Oversold near RSI support = Possible pullback
• Cloud thinning + volume reduction = initial trend depletion
• RSI divergence near cloud edge = potential reversal zone

Bonus article: BTC/USD (1 hour chart)

Let’s zoom in on the 1-hour chart for the same day frame on November 11, 2025 to see how Bitcoin is performing during this consolidation phase.

Hourly prices indicate short-term weakness amid broader consolidation.

The conversion line (106,380) and baseline (106,150) are both flattening and converging. The difference between the two is only about 230 points. This narrow gap indicates there is virtually no momentum in either direction. The market is not trending, it is swirling.

Clouds remain green and rise slightlyThis means that the underlying hourly structure maintains a mild bullish bias. However, buyers have struggled to maintain meaningful momentum above 106,000. Every time the price rises, there is selling pressure.

If the price breaks above the cloud high, it could rebound towards 106.3k-106.5k. If the price closes below 104.5k, the bias will revert to short-term bearish direction.

The hourly chart confirms consolidation within a larger consolidated base and is in a wait-and-see period.

Common mistakes to avoid

1. Transactions in the cloud:

It’s a no-man’s land. The signal here is weak and unreliable. The cloud represents equilibrium, a battleground where neither buyers nor sellers have control. Wait for a clear breakout above or below.

2. Ignore cloud projections:

Flattening or narrowing of clouds in front of you often indicates that the cloud is losing momentum. It shows that the trend is losing momentum. Look at what the cloud tells you about the future, not just the present.

3. Overcomplicate:

At a glance, five indicators are already combined into one. Adding more tools defeats the purpose. Trust the system and keep it simple.

4. Fighting big news:

Even the best cloud can’t stop the macro storm. Central bank decisions, regulatory announcements, and key economic data can override technical signals. Always check the context.

Setup with Bitfinex

1. Visit trade.bitfinex.com
2. Select trading pair
3. click Indicator → Ichimoku cloud
4. Default settings (9, 26, 52, 26) are standard
5. Observe how the cloud predicts future support and resistance zones

Check out other toolboxes in the Chart Decoder series.