☁️ Signal Cloud: The Market’s Weather Report

If you look out the window and see dark storm clouds, you take an umbrella. If you look at the chart and see a Red Signal Cloud, you take a Short.

The Signal Cloud in RelicusRoad Pro is the ultimate visual filter. It processes complex data (momentum, volatility, averages) and displays it as a simple “Atmosphere” on your chart.

Clear Skies: Once price clears the Cloud, the trend usually runs free.

Decoding the Cloud

1. Color = Direction

Green/Blue Cloud: Bullish Atmosphere. Look for Buys.
Red/Pink Cloud: Bearish Atmosphere. Look for Sells.
Grey Cloud: Neutral/Stormy. Stand aside.

2. Thickness = Strength

Thick Cloud: Strong momentum. The buyers/sellers are aggressive. Pullbacks will likely bounce off the cloud edge.
Thin Cloud: Weak momentum. The trend is fragile. Price can easily slice through it for a reversal.

3. The “Twist” = Change

When the cloud pinches to a single line and flips color, the regime has changed. This is the Signal Cloud Twist.

Strategy 1: The “Cloud Bounce” (Trend Continuation)

In a strong trend, the Cloud acts as a dynamic trampoline.

Identify: A thick Green Cloud is rising.
Wait: Price pulls back down to touch the Top Edge of the Cloud.
Trigger: Look for a bullish wick rejection off the Cloud edge.
Enter: Buy. Why it works: Traders are defending the trend trend structure. The cloud visualizes that support zone.

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Strategy 2: The “Kumo Breakout” (Trend Reversal)

Catching the start of a new era.

Identify: Price has been below a Red Cloud for a long time.
Setup: Price blasts up into the Cloud.
Wait: Do not buy yet (Trap zone). Wait for price to close Above the Cloud.
Confirm: Wait for the Cloud itself to Twist to Green.
Enter: Buy the retest of the new Green Cloud.

Strategy 3: The “C-Clamp” (Overextension)

Markets behave like magnets. If price gets too far from the Cloud, it snaps back.

Setup: Price is trending, but has moved very far away from the Cloud (large white space).
Logic: This is “Overbought.”
Action: Take Profit. Do not open new trades. Wait for price to drift back to the Cloud (Mean Reversion) before re-entering.

Conclusion

The Signal Cloud removes the need for trendlines. It draws the dynamic “Zone of Control” for you automatically.

If you are confused about the trend, just look at the cloud. It’s the easiest decision you’ll make all day.

Ready for the weather report? Get RelicusRoad Pro and trade with the atmosphere.

Signal Cloud Strategy: Visualizing the 'Mood' of the Market