The Ichimoku cloud is a handy tool that assists in counting and confirming Elliott -neo wave counts. The combine application of neo waves and Ichimoku gives more objectivity to a trader.

See below the application of the combined study applied on MCX crude which helped to identify the direction of the trend where we can see price have moved above the Ichimoku cloud, it suggests that wave c is ongoing and this is not a pullback in wave (v).

MCX Crude hourly chart


Wave Analysis:

MCX Crude formed a bullish candle followed by a hammer which closed above the high of the hammer candle which indicates that as per the bar technique the short term bias is now sideways to bullish. As per wave counts wave (c) (blue) is still on-going in an impulse pattern.

On the hourly time frame as per wave theory, Currently wave (iv) (blue) still seems to be ongoing and forming a irregular flat correction. Within this wave (iv) we can see wave c is unfolding on the upside. Price can continue to move towards 38.2% retracement of wave (iii).

In a nut shell the trend for MCX Crude looks to be sideways to positive. As per Ichimoku cloud we can see break above the cloud and also the future cloud confirms to be positive. Given the scenario prices are placed above the base and conversion line indicating positive bias.

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