the hAnDbook of teChnICAl AnAlysIs■ (^) Senkou Span A rising above and falling below Senkou Span B. Whenever the
Senkou Span A crosses above the Senkou Span B, it is an indication that a
potential uptrend may be in effect. Conversely, whenever the Senkou Span A
crosses below the Senkou Span B, it is an indication that a potential down-
trend may be in effect.
■ (^) Chikou Span rising above and falling retroactively below Tenkan‐sen, Kijun‐
sen, price, and cloud. Whenever the Chikou Span crosses above the Tenkan‐sen,
Kijun‐sen, price, or cloud, it is an indication that an uptrend may be in effect.
Conversely, whenever the Chikou Span crosses retroactively below the Tenkan‐
sen, Kijun‐sen, price, or cloud, it is an indication that a downtrend may be in
effect.
■ (^) The angle of ascent and descent of the Tenkan‐sen, Kijun‐sen, cloud, and
Chikou Span.
The angle of ascent and descent of the Tenkan‐sen, Kijun‐sen, cloud,
and Chikou Span is an indication of the strength or conviction of the trend.
Generally speaking, an angle of ascent of approximately 35 to 45 degrees is
generally considered most favorable, as it suggests the possibility of a more
steady and sustained move, with more upside expected, resulting in greater
returns for market participants. Steeper angles normally suggest shorter‐term
action as the possibility of trend exhaustion is greater as market participants
become more nervous about the rapid rise in price. In such scenarios, correc-
tions tend to occur much more quickly and more deeply than with trends that
show a more balance relationship with price and time. Finally, a shallow angle
of ascent tends to suggest that a trend may be inherently weak and lack convic-
tion, and is expected to remain as such for some time. Traders may choose to
opt out of such lethargic trends and risk capital in more animated trends. See
Figure 16.11.
FIgure 16.11 Tenkan‐Sen and Kijun‐Sen Angle of Ascent on the Daily Nasdaq Chart.
Source: MetaTrader 4