Chiko Span [Ichimoku Thread #8 🧵👇]
1/15 Basics 🇯🇵Japanese name: Chiko Span [some people use Chikou] 🇬🇧🇺🇸🇨🇦🇦🇺English name: Lagging Span ➡️Meaning: Relation of the current price to the past support/resistance levels. "Live" time element of the chart. "Second" price - one 26 cycle in the past. 🧮 Formula: The
2/15 There are many unique things about Ichimoku which make it completely different from other TA systems. 👻One of them is that when you do TA using Ichimoku, you analyse two prices - one in the present, and its "ghost shadow" 26 candles in the past - which is Chiko Span.
3/15 When you look at Chiko Span, always think of it as the price. If you see the price approaching a significant support/resistance level created from extensive past price action (or just a very HTF high or low) - would you assume that this is an obstacle? - of course yes.
4/15 To illustrate how exactly the candle at Chiko Span acts as a specific support/resistance (with mind-blowing accuracy, exactly 26 candles in the past), look at the monthly chart of Bitcoin below.🔽 🟩The green line is Chiko Span (CS) and CS is nothing but the current price
5/15 I mentioned above that Ichimoku without Chiko Span is TA without essential context which can change the picture completely. Let me illustrate this with the following example.🔽 Look at the chart below (without Chiko Span), what do you see? ❓🐂 The price has broken above
6/15 Now look at the same chart, but this time with Chiko Span. 🌨️Where is it? - below the past cloud. I.e. below resistance. As I mentioned above, with Ichimoku it's a must always to analyse the market for two prices: the current price and Chiko Span. ❌🐂The price has made
7/15 What happens next is a terrible fakeout. Now you get it: Without Chiko Span you see a breakout. With Chiko Span you see a fakeout.
8/15 🚦 Signals: CS can provide many different signals as the price itself can - because CS is also a price itself. Any CS breakout above or below a significant level is actually a signal. But there are also specific signals which are "native" only to Chiko Span. The first
9/15 ⏰I like to call the CS cross a "time-based breakout" because CS works only based on time using the 26 Kihon Suchi number from the Time Theory. 🔥 And probably the most powerful thing about it is that it shows us if a horizontal support/resistance is likely to be broken
10/15 Chiko Span tracing Chiko Span tracing is when CS is following the path of the past PA. Then we expect it to continue to do so at least until a certain shape of the past PA is finished being traced. While the tracing may be approximate and not exact (without fully
11/15 🎯 Guess what, 7th of July closed at 216$ and the CS tracing kept playing out like a Swiss watch:
12/15 Chiko Span divergence CS divergence is when CS follows the opposite direction of the candles at it. For example, if the past PA has a V shape at CS, and CS is going up but the past PA is going down, we expect when CS reaches the extreme of the past PA (the V bottom), the
13/15 In conclusion, if you follow me you must have noticed that from all Ichimoku educational threads this one is the longest one. ⚠️⏰This is because while Chiko Span has by far the simplest formula (in fact it doesn't even have a formula, it just compares two prices), it
14/15 Previous lessons 1. The Ichimoku TA system https://x.com/drpastet/status/... 2. Tenkan Sen https://x.com/drpastet/status/... 3. Kijun Sen https://x.com/drpastet/status/... 4. Real and fake TK crosses https://x.com/drpastet/status/... 5. SSA https://x.com/drpastet/status/... 6. SSB https://x.com/drpastet/status/... 7. Kumo
15/15 If you found this thread useful it could be great to like and share the original tweet at the top. I don't sell anything, I just share my knowledge for free. I don't have a lot of followers so if you think this knowledge is worth it you can help it reach more people.
@DoctorCatX WOW!!! I've just gone through the thread, and this is amazing and fascinating. Thank you so much for sharing your knowledge and educating us on this subject. I will keep reading your posts and try to learn as much as I can about Ichimoku trading and then work with it.
@BoulaisPatrice C'est un plaisir madame. J'espère que vous allez trouver intéressant mon profil.
@drpastet Great share, thank kiu 🙏
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