LESSON 07 OF 13 · FIND THE BOUNDARIES FIRST
Reading a sideways market
Original schematic · For learning, not a market forecast.
Ichimoku can help describe consolidation as well as trends. A flat Kijun, repeated price crossings and closely grouped lines suggest a balanced range. Verify that impression against actual highs and lows.
Draw a three level map
Mark the upper boundary, lower boundary and midpoint. The middle is where signals often alternate; it is not the same decision area as a test of the edge. Define the range from price structure rather than assuming the cloud is its boundary.
If a newer midpoint sits above an older, longer term reference, balance may be shifting upward. That can support a breakout scenario, but price still has to leave the range and remain beyond it.
Watch for failed breaks
For example, a range of 100–120 has a centre at 110. A move to 121 followed by a close back at 117 has returned inside the range. Record the failure rather than continuing to describe an established breakout.
Check your understanding
Which matters more for identifying this range: a single Tenkan–Kijun cross or repeated rejection of 100 and 120?
Reveal the explanation
Repeated behaviour at the boundaries. A cross near the centre can occur without a change in the range.
Further reading: Kojiro’s Japanese Ichimoku lesson 07. This English lesson and its diagram were independently written and created by Ichimoku Master.
