02. Three signals, one context

LESSON 02 OF 13 · UNDERSTAND CONFIRMATION

Three signals, one context

Three relationships form bullish confirmationOriginal educational schematic. Three relationships form bullish confirmation. This illustration is not market data.1Tenkan > KijunShort / medium balanceCondition present2Chikou > past priceHistorical comparisonCondition present3Price > current cloudCloud confirmationCondition presentAll three together = Sanyaku Kouten

Original schematic · For learning, not a market forecast.

A Tenkan–Kijun cross compares short term and medium term balance. Chikou compares today’s close with earlier price. A cloud breakout tests whether price has moved beyond the cloud at the current chart position.

What is Sanyaku Kouten?

Three part bullish confirmation means Tenkan is above Kijun, Chikou is above the corresponding historical price, and current price is above the cloud. Sanyaku Gyakuten reverses these relationships. A cloud breakout alone is not three part confirmation.

In a simple transition, the cross may appear first, Chikou confirmation next, and the cloud breakout later. Real charts do not always follow that sequence. Treat disagreement as information about the market’s condition.

The timing trade off

Earlier evidence leaves more uncertainty; later confirmation may arrive after a substantial move. Repeated crosses around flat lines often describe a range. Read the environment before interpreting any cross as an entry.

Check your understanding

Price is above the cloud, but Tenkan is below Kijun. Is this Sanyaku Kouten?

Reveal the explanation

No. One bullish condition is present, but the three part relationship is incomplete.

Further reading: Kojiro’s Japanese Ichimoku lesson 02. This English lesson and its diagram were independently written and created by Ichimoku Master.

Kei with the original Japanese Ichimoku books

AUTHOR

Kei

Kei is a Japanese forex trader and mentor who has traded since 2013. He teaches Ichimoku in English from the original Japanese texts, with a focus on chart analysis, trading psychology and risk management.