Kinjun/Tenkan – Bearish Cross

Opposite to the previous sub chapter, a bearish cross happens when the Kinjun and Tenkan lines are crossing after an upward trend, and, like the name suggests, this is a bearish signal for the overall market.

Please remember what a trending environment for the Ichimoku indicator means (Tenkan above Kinjun, cloud to be green, etc.) and when price is trending this should always mean Tenkan is higher than the Kinjun. By the time Tenkan crosses the Kinjun to the downside, this is called a bearish cross and such a signal should be considered as it shows a concrete shift in market sentiment. The higher the time frame, the stronger the signal. One cannot make a comparison between a five minute chart and a daily chart or a monthly chart when such a cross is happening.

The logical thing to do when looking at a bearish cross is to start considering proper places to initiate short positions as, depending on the time frame analyzed, such a thing might be the best to do. For example, if looking at the daily chart and seeing such a cross, the Kinjun now turns into resistance on any attempt the bulls will try over the price and that might be a nice place to initiate buying puts strategies as the most likely outcome would be that the price would be rejected from such an area.

The recording that comes with this sub chapter shows multiple bearish crosses that on multiple time frames and what are the possible places to look for buying puts based on that cross.