Kumo
The area between Senkou Span A and Senkou Span BPrimary trend and support-resistance context.Price above, inside, or below the Cloud sets the first directional bias. Cloud color adds context, but it is not a forecast by itself.
Technical analysis study system
Learn the cloud as a system.
A source-linked Ichimoku guide for signals, setups, chart patterns, and risk.
Educational reference only. No live data, trade alerts, or buy and sell recommendations.
[S1][S2][S3][S4][M1][M2][M3]Start with structure.
Read the five components as one balance system before looking for a trigger.
Tenkan-sen
(9-period high + 9-period low) / 2Fast equilibrium line.Tracks shorter-term price balance and forms the faster half of the TK relationship.
Kijun-sen
(26-period high + 26-period low) / 2Medium-term equilibrium line.Acts as a trend reference and a dynamic area to watch during pullbacks or bounces.
Senkou Spans A + B
A: (Tenkan + Kijun) / 2. B: 52-period midpoint. Both plot 26 periods forward.The two boundaries of the Cloud.Their order colors the Kumo. Their separation expresses a zone, not a single support or resistance line.
Chikou Span
Current close plotted 26 periods backHistorical confirmation layer.Compare it with prior price and Cloud structure. Congestion can weaken an otherwise attractive signal.
Read signals in order.
A TK cross has different weight above, inside, or below the Cloud.
Where is price relative to the Cloud?
Which leading span is on top?
How are Tenkan and Kijun aligned?
Confirmation[S1]
Is Chikou clear of prior structure?
Bullish alignmentBearish alignment
Price above the Cloud
Price below the Cloud
Span A above Span B
Span A below Span B
Tenkan above Kijun
Tenkan below Kijun
Above prior price and Cloud
Below prior price and Cloud
Alignment increases context, not certainty. Inside the Cloud, directional conviction is lower.[S1][S3][S4]
Turn observations into setups.
Each setup needs conditions, a trigger, invalidation, and a known reason to pass.
TK recrossA momentum reset inside an established trend.Open setup
Conditions
- Price remains on the trend side of the Cloud.
- Tenkan crosses against the trend, then realigns.
- Chikou is not trapped in nearby structure.
Trigger
The trend-aligned Tenkan-Kijun recross closes.
Invalidation
Price loses the broader Cloud bias or the recross immediately fails.
Caution
A cross against the Cloud trend is weaker and may be an exit signal rather than a new reversal trade.
Kijun bounceA return toward medium-term equilibrium during a trend.Open setup
Conditions
- The larger trend is already clear.
- Price stretches away from Kijun, then retraces.
- Nearby structure supports the same directional thesis.
Trigger
Price tests Kijun and closes back in the trend direction.
Invalidation
Price accepts beyond Kijun and breaks the supporting structure.
Caution
Kijun is a dynamic reference, not a guaranteed exact turning price.
Cloud edge-to-edgeA range hypothesis after price closes inside the Kumo.Open setup
Conditions
- Price has entered the Cloud on a closing basis.
- The opposite edge offers enough room relative to invalidation.
- Higher-timeframe structure does not strongly oppose the move.
Trigger
The entry edge breaks and holds inside the Cloud.
Invalidation
Price closes back through the entry edge.
Caution
This is the source author’s heuristic. Treat Cloud interiors as noisy and validate it on your market and timeframe.
C-clampA mean-reversion watch when Tenkan and Kijun become unusually separated.Open setup
Conditions
- TK distance is visibly expanded for the chosen timeframe.
- The setup aligns with a larger trend or clear reversal confluence.
- A separate trigger defines timing and risk.
Trigger
Price confirms reversal behavior toward Kijun.
Invalidation
Trend acceleration continues and the reversal structure fails.
Caution
This is counter-trend by nature. Separation alone is not a trade signal.
Patterns need context.
Draw early if useful, but wait for completion before treating the pattern as actionable.
ContextContinuation or reversal?
CompletionDid the boundary break?
VolumeDoes participation confirm?
RiskWhere is the idea wrong?
TargetPattern depth is a guide, not a promise.
[S2]Execution is part of the setup.
The supplied materials connect chart reading with sizing, exits, expectancy, and emotional discipline.
Trade management study board
[M1]Compare sizing methods, pre-plan exits, and define stop and target logic before entry.
Thinking in probabilities
[M2]Evaluate expectancy across a sample and record outcomes in units of initial risk.
Size from the invalidation.
Choose a risk budget first, then derive position size from entry-to-stop distance and market liquidity.
[M1][M2]Define the exit before entry.
Write the target, stop, partial-exit rule, and trailing condition while the decision is still unemotional.
[M1]Review the process in R.
Track rule execution, R-multiples, and a meaningful sample. One trade cannot validate a system.
[M2]Find a concept fast.
Use the index during chart review, then follow the source tag when you need the original context.
Search titles, concepts, and source-backed tags.
19 references
CoreKumo: The Cloud
Primary trend and support-resistance context.
[S1][S3][S4]CoreTenkan-sen: Conversion LineFast equilibrium line.
[S3][S4]CoreKijun-sen: Base LineMedium-term equilibrium line.
[S1][S3][S4]CoreSenkou Spans A + B: Leading SpansThe two boundaries of the Cloud.
[S3][S4]CoreChikou Span: Lagging SpanHistorical confirmation layer.
[S1][S3][S4]SetupsTK recrossA momentum reset inside an established trend.
[S1][S3]SetupsKijun bounceA return toward medium-term equilibrium during a trend.
[S1][S3]SetupsCloud edge-to-edgeA range hypothesis after price closes inside the Kumo.
[S1]SetupsC-clampA mean-reversion watch when Tenkan and Kijun become unusually separated.
[S1]PatternsFlag or pennantImpulse, compact pause, breakout
[S2]PatternsAscending triangleFlat resistance, rising support
[S2]PatternsDescending triangleFlat support, falling resistance
[S2]PatternsCup and handleRounded recovery, controlled pullback
[S2]PatternsHead and shouldersThree peaks with a lower final failure
[S2]PatternsInverse head and shouldersThree troughs with a higher final recovery
[S2]PatternsDouble top or bottomTwo tests of a price extreme
[S2]PatternsAdam and EveSharp V paired with a rounded U
[S2]RiskPosition sizing lensesCompare account percentage, fixed fractional, volatility, technical, and liquidity-aware sizing.
[M1]RiskExpectancy and R-multiplesJudge the process across a sample, in risk units, instead of one outcome.
[M2]A repeatable chart review.
Keep the sequence stable so hindsight does not rewrite the rules.
- BiasPrice and Cloud relationship
- StructureTK, Kijun, and Chikou alignment
- SetupConditions and closing trigger
- RiskInvalidation, size, and target
- ReviewRule execution and R result
Source shelf.
Claims in this guide point back to these stored references. The two Medium articles remain the core reading.
‘Toshimoku’s Trading Tips & Tricks
#SatoshiMoku / CarpeNoctom
2018-01-17. Original Medium article. Member access may be required.Crypto Chart Pattern Compendium
#SatoshiMoku / CarpeNoctom
2018-12-18. Original Medium article. Member access may be required.Ichimoku Cloud
StockCharts ChartSchool
Reference guide. Formula and interpretation reference.Ichimoku Cloud
Fidelity Learning Center
Reference guide. Independent formula and signal reference.Trade management study board
User-provided material
Provided 2026-08-19. Position sizing, exits, pattern targets, and learning stages.Thinking in Probabilities: A Trader’s Edge
User-provided material
Provided 2026-08-19. Expectancy, sample size, R-multiples, and process discipline.Kioxia daily Ichimoku chart
User-provided material
Provided 2026-08-19. Visual reference for chart-platform line, Cloud, price, and volume colors.