10. A repeatable chart reading checklist

LESSON 10 OF 13 · MAKE THE ANALYSIS EXPLICIT

A repeatable chart reading checklist

A chart-reading workflowOriginal educational schematic. A chart reading workflow. This illustration is not market data.1 · EnvironmentTrend / range / mixed2 · BalancePrice vs. references3 · ChikouClear / congested4 · ProgressWhat changed?5 · ScenarioConfirm / invalidate6 · Range mapEdges / centre / width

Original schematic · For learning, not a market forecast.

A checklist turns a visual impression into observations you can compare over time. Fill it in using completed bars, and revisit it whenever the market’s structure changes.

  1. Environment. Is Kijun rising, falling or flat? Does price support a trend or range description?
  2. Balance. Is price above or below Tenkan, Kijun and the relevant cloud boundaries?
  3. Chikou. Is it clear of historical price, below it, or congested?
  4. Progress. Which relationships improved or deteriorated since the previous observation?
  5. Scenario. Which level and next observable event would support or invalidate your view?
  6. Range alternative. If the market is sideways, record the centre, upper edge, lower edge and width.

Keep a short journal

Record the symbol, timeframe, bar time, settings, relevant levels and a screenshot. Use descriptions such as “mixed” when evidence conflicts. A checklist documents reasoning; it does not generate a mechanical buy or sell instruction.

Check your understanding

Kijun is flat, Chikou is tangled, and price is inside the cloud. Must the checklist select a bullish or bearish answer?

Reveal the explanation

No. “Range or unresolved” is a useful conclusion. Record boundaries and the condition that would resolve the uncertainty.

Further reading: Kojiro’s Japanese Ichimoku lesson 10. 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.