Cloud trading
Applications of the Tenkan and Kijun
The most common application of the Tenkan and Kijun lines are the ‘cross’ referred to as the Tenkan-Kijun Cross (TKx). The Ichimoku Cloud uses the TKx the same way a MACD uses a cross of its two lines.
One of the key indicators for Ichimoku traders offered by the TKx is when a trend is about to begin. This occurs via forming a cross where;
-an upward cross means a possible upward trend while a downward cross implies a possible downtrend. A generic upward cross can be used as a generic bullish signal and a generic downward cross can be used as a generic bearish signal.
Goichi Hosada went even further to give another definition of the cross based upon its position in relationship to the cloud.
Weak Cross: It is considered a weak signal if the cross is below the Kumo; since the cross is below resistance.
Medium Cross: It is a medium signal when it happens inside the Kumo; the cross occurs within the field of support/resistance.
Strong Cross: The strongest signal is when the cross occurs above the Kumo for a bullish cross, or a bearish cross below the Kumo. This is because the cross is occurring after the price action has cleared the support or resistance – that being the Kumo.
The vice versa is true for the bearish signals.
SOURCE :https://ichimokustrategy.com/ichimoku-strategies-the-tenkan-kijun-cross-setup/
OR
When price closes above the kumo =Go long.
When price closes below the kumo=Go short
Applications of the Tenkan and Kijun
The most common application of the Tenkan and Kijun lines are the ‘cross’ referred to as the Tenkan-Kijun Cross (TKx). The Ichimoku Cloud uses the TKx the same way a MACD uses a cross of its two lines.
One of the key indicators for Ichimoku traders offered by the TKx is when a trend is about to begin. This occurs via forming a cross where;
-an upward cross means a possible upward trend while a downward cross implies a possible downtrend. A generic upward cross can be used as a generic bullish signal and a generic downward cross can be used as a generic bearish signal.
Goichi Hosada went even further to give another definition of the cross based upon its position in relationship to the cloud.
Weak Cross: It is considered a weak signal if the cross is below the Kumo; since the cross is below resistance.
Medium Cross: It is a medium signal when it happens inside the Kumo; the cross occurs within the field of support/resistance.
Strong Cross: The strongest signal is when the cross occurs above the Kumo for a bullish cross, or a bearish cross below the Kumo. This is because the cross is occurring after the price action has cleared the support or resistance – that being the Kumo.
The vice versa is true for the bearish signals.
SOURCE :https://ichimokustrategy.com/ichimoku-strategies-the-tenkan-kijun-cross-setup/
OR
When price closes above the kumo =Go long.
When price closes below the kumo=Go short
