Can I use/trust Ichimoku Cloud overlay on stocks/funds charts as a forecast tool? I have found that when I am using this overlay on the SharpChart (stockcharts.com) with the period set at "Weekly", it shows momentum and trend directions in the future (as of today, it shows it on the chart up to 05/2019). Thanks.
Trust as a "forecast" tool. I'd say no. As confirmation, perhaps. Indicators are based on only 2 streams of data, price and volume. If those change the indicators change, not the other way around. The tail does not wag the dog. I find indicators most useful for developing scans. Nevertheless, you should post a chart showing us that Ichimoku projection and explain what you know about it. I'd be interested. Linda Bradford Raschke does the best job I've seen using indicators.
