Trading with Clouds

As if investing was not complicated enough, any mention of ‘technical analysis’ is likely to cause most individual investors to roll their eyes and ask “What now?” Fear not. You’re set to learn one of the easiest and yet most powerful approaches to market analysis that may help improve your investing and maybe even give you peace of mind.
Technical Analysis (TA), for those unfamiliar with the term, is an approach to market analysis that focuses on price movements. Well-intentioned people can reasonably debate about what the proper value of a share of Google or Coca Cola should be, or what the right value of gold is.
One issue they can’t dispute is what the price of Google, Coke, or gold is now or what it’s been in the past. That’s where technical analysis comes in. Technical Analysis takes the subjectivity (and emotion) out of the picture and zeroes in on the one component of an investment that we can all see: the price.
There are literally hundreds of different approaches to technical analysis, with thousands of books and articles having been written about them. The approach we introduce below is known as Ichimoku, a form of a moving average system. Ichimoku (ee-Chee-Mo-koo) charts offer a powerful tool for investors to identify overall market trends and pinpoint key levels of support and resistance that are unlikely to be revealed by other forms of technical analysis.
Don’t be scared off by the name—that’s where the simplicity comes in. Developed...

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