Ichimoku Clouds are an all-rounder technical indicator that provides multiple trading aspects. At times, these Clouds do act as a potential resistance or support handle, controlling the price actions.
Two significant lines – Base line (26-day Average) and Conversion line (9-day Average) accompany the Ichimoku Clouds.
Depending upon the position of the Ichimoku Clouds, Base line and conversion line wrt the trading entity, the future prospects are plotted. If the stock price stay above the Ichimoku Clouds and other adjoined moving avearges, then it is considered to be bullish.
On the other hand, if the stock price stay below the aforementioned Cloud components then there is a bearish market expectation.