1. Introduction: The Two Key Lines and Their Meaning 📊
Welcome to this guide on the Ichimoku system. We're going to focus on the signals created when two of its most important lines—the Tenkan-sen and the Kijun-sen—cross over each other. These crosses can indicate potential shifts in the market 📈📉, but there's a crucial detail that many new traders miss.
The core insight you'll learn today is that not all crosses are created equal. Some signal a weak or non-existent opportunity, while another type can be a powerful, money-making signal 💰. Understanding the difference in their relative strength is key to making better trading decisions.
We will now rank these four signals from weakest to strongest, giving you a clear framework for identifying low-probability setups versus high-potential opportunities.
2. The Four Cross Signals, Ranked by Strength ⚡
2.1. Signal 1 (Weakest): The "Flat Tenkan-sen" Cross 🚫
This is the least reliable signal and one that requires extreme caution.
• Formation: This cross occurs when the Tenkan-sen line becomes flat, and the Kijun-sen line crosses either above or below it.
• Meaning for a Trader: This cross has very low validity and is considered weakly valid. It typically does not lead to any significant price movement, and the source explicitly advises that traders should not enter a trade based on this signal. ❌
2.2. Signal 2 (Cautious): The "Flat Kijun-sen" Cross ⚠️
While more meaningful than the "Flat Tenkan-sen" cross, this signal still calls for a cautious approach.
• Formation: This signal forms when the Kijun-sen line becomes flat, and the faster Tenkan-sen line crosses it from above (bearish) or below (bullish).
• Meaning for a Trader: A flat Kijun-sen often indicates a period of market consolidation or balance. A cross of this line suggests a potential breakout from that balance, but it requires careful observation and validation. 👀
2.3. Signal 3 (Standard): The "Classic" Cross ✅
This is the most commonly discussed Ichimoku cross signal and represents a standard alert for a potential momentum shift.
• Formation: A "Classic" cross happens when the Tenkan-sen crosses the Kijun-sen either upwards (a bullish signal) or downwards (a bearish signal) while both lines are angled and moving.
• Meaning for a Trader: This is a standard Ichimoku signal that suggests a potential change in short-term market momentum and a possible entry point, provided it is confirmed by other factors.
2.4. Signal 4 (Strongest): The "High-Momentum" Cross 🚀💎
This is the most powerful and reliable of the four signals—the one described as the money-making signal.
• Formation: Due to very high market momentum, the Tenkan-sen and Kijun-sen lines move so closely together that they appear to be "riding" on top of each other. The momentum is so high it can be difficult to distinguish the individual lines or even tell if the cross is bullish or bearish by color.
• Meaning for a Trader: This powerful formation often precedes a sharp or spike-like price movement 📈⚡. If a trader can identify this signal correctly and on time, it can provide a very good entry for a potentially strong and fast-moving trade. 🎯
3.A Crucial Warning: The Need for Validation 🚨
Finally, it is essential to understand one critical rule: none of these cross signals should ever be used in isolation to make a trading decision.
The source material clearly states that every cross, regardless of its apparent strength, must be validated using other factors before entering a trade. This knowledge is just one piece of the puzzle 🧩. The specific factors needed for this validation were noted to be covered in a separate, future lesson. Therefore, use this guide to identify and rank signals, but always remember that confirmation is a required next step. ✔️
Welcome to this guide on the Ichimoku system. We're going to focus on the signals created when two of its most important lines—the Tenkan-sen and the Kijun-sen—cross over each other. These crosses can indicate potential shifts in the market 📈📉, but there's a crucial detail that many new traders miss.
The core insight you'll learn today is that not all crosses are created equal. Some signal a weak or non-existent opportunity, while another type can be a powerful, money-making signal 💰. Understanding the difference in their relative strength is key to making better trading decisions.
We will now rank these four signals from weakest to strongest, giving you a clear framework for identifying low-probability setups versus high-potential opportunities.
2. The Four Cross Signals, Ranked by Strength ⚡
2.1. Signal 1 (Weakest): The "Flat Tenkan-sen" Cross 🚫
This is the least reliable signal and one that requires extreme caution.
• Formation: This cross occurs when the Tenkan-sen line becomes flat, and the Kijun-sen line crosses either above or below it.
• Meaning for a Trader: This cross has very low validity and is considered weakly valid. It typically does not lead to any significant price movement, and the source explicitly advises that traders should not enter a trade based on this signal. ❌
2.2. Signal 2 (Cautious): The "Flat Kijun-sen" Cross ⚠️
While more meaningful than the "Flat Tenkan-sen" cross, this signal still calls for a cautious approach.
• Formation: This signal forms when the Kijun-sen line becomes flat, and the faster Tenkan-sen line crosses it from above (bearish) or below (bullish).
• Meaning for a Trader: A flat Kijun-sen often indicates a period of market consolidation or balance. A cross of this line suggests a potential breakout from that balance, but it requires careful observation and validation. 👀
2.3. Signal 3 (Standard): The "Classic" Cross ✅
This is the most commonly discussed Ichimoku cross signal and represents a standard alert for a potential momentum shift.
• Formation: A "Classic" cross happens when the Tenkan-sen crosses the Kijun-sen either upwards (a bullish signal) or downwards (a bearish signal) while both lines are angled and moving.
• Meaning for a Trader: This is a standard Ichimoku signal that suggests a potential change in short-term market momentum and a possible entry point, provided it is confirmed by other factors.
2.4. Signal 4 (Strongest): The "High-Momentum" Cross 🚀💎
This is the most powerful and reliable of the four signals—the one described as the money-making signal.
• Formation: Due to very high market momentum, the Tenkan-sen and Kijun-sen lines move so closely together that they appear to be "riding" on top of each other. The momentum is so high it can be difficult to distinguish the individual lines or even tell if the cross is bullish or bearish by color.
• Meaning for a Trader: This powerful formation often precedes a sharp or spike-like price movement 📈⚡. If a trader can identify this signal correctly and on time, it can provide a very good entry for a potentially strong and fast-moving trade. 🎯
3.A Crucial Warning: The Need for Validation 🚨
Finally, it is essential to understand one critical rule: none of these cross signals should ever be used in isolation to make a trading decision.
The source material clearly states that every cross, regardless of its apparent strength, must be validated using other factors before entering a trade. This knowledge is just one piece of the puzzle 🧩. The specific factors needed for this validation were noted to be covered in a separate, future lesson. Therefore, use this guide to identify and rank signals, but always remember that confirmation is a required next step. ✔️
Queenichi 👑
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Queenichi 👑
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
