What is Bullish Ichimoku Signal ?
When a stock closes above the Ichimoku cloud a bullish cloud signal is issued.
What Is the Ichimoku Cloud ?
The Ichimoku Cloud is a collection of technical indicators that show support and resistance levels, as well as momentum and trend direction. It does this by taking multiple averages and plotting them on a chart. It also uses these figures to compute a “cloud” that attempts to forecast where the price may find support or resistance in the future.
— from https://www.investopedia.com/terms/i/ichimoku-cloud.asp
Okay But what does it really mean ?
There are rules like “ONLY Bullish trades Allowed when the stock is above the cloud” This enforces you to not attempting to short the runners.
Other rule is “ONLY Bearish trades Allowed when the stock is under the cloud” This enforces you to not attempting to catch falling knives.
Another rule is “Trades NOT Allowed when stock is inside the cloud” This saves your mental capital to focus on runners and not something that’s not likely to move just yet.
This often means trying to find the stocks which were inside the cloud and just peeking above. The logic behind this scanner signal is to attempt to find such stocks.