Docs

Dashboard

Cloud Bands

Adaptive volatility envelope that expands and contracts with market conditions, providing dynamic support/resistance levels and trend direction.

What are Cloud Bands?

Cloud Bands create a dynamic volatility envelope around price action, automatically adjusting to market conditions. The bands expand during volatile periods and contract during consolidation, helping you identify trend direction, support/resistance levels, and potential breakout zones.

Key Components

  • Upper Cloud - Resistance and overbought zone
  • Lower Cloud - Support and oversold zone
  • Midband - Dynamic equilibrium level
  • Gradient Layers - Volatility intensity visualization

Why They Work

Cloud Bands adapt to market volatility in real time, providing context-aware support and resistance levels that static indicators miss. The multi-layered gradient shows strength levels at a glance.

Understanding the Cloud Structure

Cloud Layers

The cloud consists of multiple bands creating a gradient effect:

Layer Location Meaning Trading Use
Outer Band Furthest from price Extreme overbought/oversold Reversal zones
Middle Layers Gradient zones Increasing strength levels Partial profits
Inner Band Closest to price Initial support/resistance First targets
Midband Center line Dynamic equilibrium Bias filter

Dynamic Midband Color Coding

Price Position Indication:

  • Green tint - Price above (bullish)
  • Red tint - Price below (bearish)
  • Neutral - Price at equilibrium

Trading Application:

  • Green = Look for longs
  • Red = Look for shorts
  • Neutral = Wait for direction

Configuration Settings

Basic Settings

Setting Options Default Description
Show Cloud Bands On/Off ON Toggle cloud visibility
Cloud Period Mode Auto/Manual Auto Adaptive or fixed period
Manual Period 5-400 80 Custom period (Manual mode only)
Show Cloud Midline On/Off ON Display center equilibrium line

Period Mode Guide

Automatic adaptation based on timeframe:

The system intelligently calculates optimal periods:

  • 1-5 min: Ultra-responsive settings
  • 15-60 min: Balanced intraday
  • 4H-Daily: Smooth swing trading
  • Weekly+: Major trends only

Benefits:

  • No manual adjustment needed
  • Optimized for each timeframe
  • Reduces false signals

Best for: 95% of traders

Fixed period settings guide:

Period Range Characteristics Best For
20-40 Very responsive, many signals Scalping
60-80 Balanced sensitivity Day trading
100-150 Smooth, fewer whipsaws Swing trading
200+ Major trends only Position trading

When to use:

  • Specific strategy requirements
  • Backtesting consistency
  • Personal preference

Best for: Advanced users with specific needs

Trading Signals

  1. Cloud Breakouts

    Bullish Breakout:

    • Price closes above upper cloud
    • Cloud is sloping upward
    • Volume confirmation ideal

    Bearish Breakout:

    • Price closes below lower cloud
    • Cloud is sloping downward
    • Strong momentum signal

  2. Cloud Squeeze

    Characteristics:

    • Cloud Bands converge (narrow)
    • Low volatility period
    • Energy building for move

    Trading approach:

    • Mark the squeeze zone
    • Wait for expansion direction
    • Trade the breakout with tight stops

  3. Midband Crosses

    Signals:

    • Cross above = Bullish bias shift
    • Cross below = Bearish bias shift
    • Multiple tests = Strong level

    Confirmation:

    • Check cloud slope
    • Verify MTF alignment
    • Look for volume

Trading Strategies

Strategy 1: Cloud Edge Bounce

Setup:

  1. Price approaches cloud edge in trending market
  2. Look for rejection candles
  3. Enter on bounce with tight stop
  4. Target opposite cloud edge or midband

Best for: Trending markets with clear cloud slope

Strategy 2: Breakout Trading

Setup:

  1. Identify cloud squeeze (narrow bands)
  2. Wait for decisive break with volume
  3. Enter on retest of cloud edge
  4. Stop below/above cloud
  5. Target = 2x cloud width

Best for: Range breakouts and momentum trades

Strategy 3: Mean Reversion

Setup:

  1. Price at outer cloud extreme
  2. Look for reversal patterns
  3. Enter targeting midband
  4. Stop beyond cloud extreme

Best for: Overextended markets

Visual Interpretation

Cloud Colors and Opacity

Color Intensity:

  • Darker/opaque = Higher volatility
  • Lighter/transparent = Lower volatility
  • Red gradient = Resistance zones
  • Green gradient = Support zones

Trading Meaning:

  • Dark = Use wider stops
  • Light = Tighten risk
  • Red = Sell zones
  • Green = Buy zones

Cloud Slope Analysis

Slope Visual Meaning Trading Bias
Steep up 45°+ Strong uptrend Long only
Gentle up 15-45° Weak uptrend Long preferred
Flat 0-15° Ranging market Both directions
Gentle down 15-45° Weak downtrend Short preferred
Steep down 45°+ Strong downtrend Short only

Alert Configuration

Alert Name Triggers When Use Case Setup
Cloud Breakout Up Price breaks above upper cloud Momentum long entry Slope must be up
Cloud Breakout Down Price breaks below lower cloud Momentum short entry Slope must be down
Cloud Midband ↑ Price crosses above midband Bias shift to bullish Watch for confirmation
Cloud Midband ↓ Price crosses below midband Bias shift to bearish Watch for confirmation

Pro Tips

Reading Market Conditions

Cloud Width Market State Strategy
Very Wide High volatility Wide stops, smaller size
Normal Balanced Standard approach
Narrow Low volatility Breakout pending
Expanding Volatility increasing Trend starting
Contracting Consolidation Prepare for move
  • Higher TF cloud: Major trend direction
  • Current TF cloud: Trade execution
  • Lower TF cloud: Fine-tuning entries
  • All aligned: Highest probability
  • Mixed: Stay cautious
Component Guideline
Stop Placement Beyond cloud extreme
Position Sizing Inverse to cloud width
Take Profit 1 Midband
Take Profit 2 Opposite cloud edge
Trail Stop Along midband

Combining with Other Features

Powerful Combinations

With Order Blocks:

  • Cloud edge + Order Block = High-probability reversal
  • Breakout + Clear block = Momentum continuation
  • Squeeze at OB = Explosive move pending

With Market Structure:

  • CHoCH at cloud extreme = Major reversal
  • BOS with cloud breakout = Strong trend
  • Structure within cloud = Weak signal

With MTF Dashboard:

  • Cloud breakout + 6+ TF aligned = Highest conviction
  • Midband cross + MTF flip = Trend change confirmed
  • Squeeze + MTF divergence = Stay out

Common Mistakes

Troubleshooting

Cloud not showing
  • Check “Show Cloud Bands” is enabled
  • Ensure sufficient price history loaded
  • Try switching between Auto/Manual mode
  • Verify chart has enough data points
  • Some instruments may need manual period adjustment
Cloud too wide/narrow
  • Auto mode: Adapts automatically - if still wrong, try Manual
  • Manual mode adjustments:
    • Too wide → Decrease period (try -20)
    • Too narrow → Increase period (try +20)
  • Consider your timeframe (lower TF = lower period typically)
Midband not visible
  • Enable “Show Cloud Midline” in settings
  • May be hidden behind price candles
  • Check if it’s the same color as background
  • Try zooming in/out
Cloud appears choppy
  • Normal on very low timeframes (1-5m)
  • Solutions:
    • Increase period in manual mode
    • Use higher timeframe (15m+)
    • Switch to Auto mode
    • Enable smoothing if available

Quick Reference

Visual Cues at a Glance

Cloud Width:

  • Wide = High volatility
  • Narrow = Low volatility (squeeze)
  • Expanding = Trend starting
  • Contracting = Range forming

Colors and Slope:

  • Green midband = Bullish bias
  • Red midband = Bearish bias
  • Steep slope = Strong trend
  • Flat cloud = Range-bound

Trading Rules Checklist

  • Trade with the cloud slope direction
  • Enter at edges, not middle
  • Adjust stop width to cloud width
  • Watch for squeeze setups
  • Use midband as bias filter
  • Confirm with other features
  • Respect cloud extremes