Kijun Sen

Kijun Sen This is the third thread from the Ichimoku series. Here I will cover Kijun Sen. 🧵👇

1/9·View on X

1/8 Basics 🇯🇵Japanese name: Kijun Sen 🇺🇸🇬🇧🇦🇺🇨🇦English name: Base Line ➡️Meaning: Mid term support/resistance. 🧮 Formula: The average of the max and min value of the past 26 candles

2/9·View on X

2/8 📔 Readings: - In a trend the price is above/below Kijun Sen. This means buyers/sellers are in control mid term. Bouncing from it shows a stable trend. - Going below it on an uptrend and vice versa is always a big deal and might be a sign that the trend is dead or starting to die. - In a full blown trend both Kijun Sen and Tenkan Sen are above/below the cloud (more about the cloud in the next lessons).

3/9·View on X

3/8 🎢 Slope: ↗️ Kijun Sen sloped in the direction of the trend implies an active movement in the direction of the trend and reduces the chance for a retrace. 🧲 Flat Kijun Sen acts as a magnet and attracts the price for a retrace to it. ↘️ Kijun Sen sloped against the direction of the trend is a very rare thing to see and it's a red flag which might signal the end of the trend.

4/9·View on X

4/8 Strength Kijun Sen is a major/strong support. That's why it's supposed to hold during a trend and not holding it may be a sign of a dying tend.

5/9·View on X

5/8 ⚖️ Balance Kijun Sen is supposed to be revisited on average each 26 candles. If it's not visited for longer, the price is pending a retrace and the market seeks balance. If the price is too far away from KS but it has touched it before less than 26 candles, this is not a concern. But if the price is too far away from it and hasn't touched it for 27+ candles, this is a concern because it means a sharp retrace may come at any moment. Specifically for $BTC my backtesting shows that around 4-5 ATR away from it after the 26th candle without a retrace enters a danger one. ATR is an indicator - a measurement unit for distance in the chart which is not part of Ichimoku. If Kijun Sen is flat and not visited since 27+ candles, the chance for a retrace to it is even higher - as what happened to $BTC in July 2024.

6/9·View on X

6/8 🚦 Signals: ❌❎ TK cross (cross between Kijun Sen and Tenkan Sen). This is when the value of Tenkan Sen goes above Kijun Sen (golden cross) or vice versa (death cross). There are strict guidelines in Ichimoku for which dead/gold cross is a fake and which is a real one. They will be covered in a next lesson. 🔐 Price close above/below Kijun Sen Can't be used as a standalone signal reliably, especially on LTF, but it gives strong hint that the trend may be either starting, ending, or resuming.

7/9·View on X

7/8 Function of Kijun Sen in a range/trend: 📈In a trend, the price bounces from Kijun Sen and keeps moving in the direction of the trend. 📈📉In a range, the price moves around the center of the range, which is Kijun Sen. If you see the price rejecting from the extreme of a range, and you see that the market is ranging as per Ichimoku, or at least if Kijun Sen is flat - then you can expect the price to go at least back to Kijun Sen - which is the center of the range.

8/9·View on X

8/8 Previous lessons: 1. The Ichimoku TA system https://x.com/drpastet/status/1810173302792471028 2. Tenkan Sen https://x.com/drpastet/status/1810173264020328553

9/9·View on X