11. The three jobs of a midpoint

LESSON 11 OF 13 · LEVEL, BALANCE AND DIRECTION

The three jobs of a midpoint

One line, three separate observationsOriginal educational schematic. One line, three separate observations. This illustration is not market data.LEVELWhere is the centre?Kijun = 110BALANCEWhere is price?Price = 112, aboveDIRECTIONHow is it changing?Kijun is still fallingPosition and slope can disagree

Original schematic · For learning, not a market forecast.

A midpoint line can answer three questions at once: Where is the centre of the selected range? Which side of that centre is price occupying? How is that centre changing?

Read each job separately

Level: Kijun identifies the centre of its 26 bar high–low range. Balance: price above or below it locates price within that range. Direction: a rising, falling or flat line describes the movement of the rolling centre.

These observations can disagree. Price above a falling Kijun does not suddenly make the medium term structure an established uptrend. The position has improved, while the midpoint’s direction has not yet followed.

Use several horizons

Tenkan, Kijun and the midpoint used for Span B apply the same idea to different windows. Treat Kijun as a medium term reference, then check whether the shorter and broader pictures reinforce or challenge your reading. Remember that displayed Span B is displaced.

Check your understanding

Kijun is 110 and falling; price is 112. What two observations should you keep separate?

Reveal the explanation

Price is above the current midpoint, but the rolling midpoint is still falling. Position and slope are different evidence.

Further reading: Kojiro’s Japanese Ichimoku lesson 11. 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.