This article is going to expand on more use cases of Ichimoku and what potential setups I look for. If you haven’t read part one you can read it by clicking here. Ill be adding more parts to my Ichimoku Guide over the next couple months so make sure you are subbed. Today you’ll learn about TK crosses as well as End to End strategies that can be applied on any timeframe and any asset.
Lets start with one of the simplest setups to look for which is the E2E (End To End) play, this is when the price enters into the cloud from either the top or bottom and goes to the opposite side.(see example below) The key is to look for cloud structures in which the price getting ready to potentially enter a sufficiently sized cloud after a recent price decline or increase. Cloud entries like this give you higher probability to decide if the current trend is going to potentially turn around from being bearish to bullish or vice versa. It not always a guarantee that the after the E2E play you see it follow thru so assessing your risk is important based off your entry . Typically I cut part of the position after the end to end play is complete.
What to take away on “E2E” plays:
Look for potential cloud entries if you believe a trend is ending or beginning.
You want to trade clouds that are essentially thicker vs thinner so you have a defined entry and exit.
*TK crosses typically form before a cloud entry*
TK (Tenkan Kijun) crosses is another set of signals to look for which help assist E2E plays by giving you an earlier signal to notify of potential cloud entries or cloud pattern continuations and exhaustions. On the example to the right side above us you’ll notice that prior to the bullish “End to End” play you see a bullish TK. A TK cross prior to a cloud setup can be a signs of trend starting and giving more probability that your E2E play will work out. Typically when the price is going up the support line is the Kijun with the price action is above it and over a green cloud. When the price is going down the Kijun now acts are resistance with the price below it and a red cloud above. (see example below) After a TK cross has been going in its direction for a good amount as shown below, that’s when you want to start searching for potential E2E play structures.
What to take away on “TK” crosses:
TK crosses help you find potential E2E plays.
TK crosses after they are formed use the Kijun as the major resistance or support point.
*You can trade like a range in-between the Tenkan and Kijun if the spacing is suitable*
Lastly lets touch on Time-Frames(TF) as that is a frequent request. Ichimoku and these strategies can be used on anytime frame however you have adjust your expectancy of price movements. This means when you select a lower time frame understand that it will go thru cloud structures and TK crosses much faster vs a daily or weekly TF which would take a few days to confirm. Its always good to cycle thru every time-frame and get your levels in place in the event there is a reaction at those levels. Looking at the example below, the left is the 15 min and the right is the 5min so seeing that, it shows that on the 15min we want a cloud entry however on the 5min we are already in the middle of E2E play. On the 15min the Kijun flip point is the cloud exit point on the 5min. This gives you the choice to play a cloud exit or just a Kijun tap depending on what time frame you are looking at.
So to give a flow of things:
Identify potential Cloud continuations or exhaustions > > > Look for TK crosses > > > Look for potential E2E setups »> Figure out if you are going to play just a E2E or a Breakout.
You should repeat that same process on each time frame you are analyzing.
I am keeping these as short and simple as possible as I know it can be overwhelming with all the features and functions when you start learning Ichimoku. For now you are being spoon fed, if you feel you have all this down then you can easily google and find more information ,DM me on twitter or just ask me on my stream I love talking about it. With my next guide we will discuss entries, exits and invalidations based off what you already know.
Thank you for reading!
My Twitch where I Livestream is : https://www.twitch.tv/acestacks
(Everyday at 3pm EST and occasionally on the weekends at 9pm EST)
My Twitter is: @hackermanace
If this was helpful, please Share and RT on your socials , that would be much appreciated! Feel to comment any suggestions or questions.
Nicely done Ace!