What To Take Into Consideration

One of the early signs a shift is happening in the current trend is the Kinjun-Tenkan cross. Whenever trend is in place, the Tenkan line (usually the red line on most of the trading platforms) should be above the Kinjun line (usually the blue line on most of the trading platforms) if the trend is to the upside, and below the Kinjun if the trend is to the downside.

Therefore, in a downtrend, the cross between the two lines should result in Tenkan going above Kinjun and, in an uptrend the opposite being true as well. This is the first clue something is happening to the initial trend and it is usually signaling a possible reversal might take place.

Next, one should look at the actual cloud, as the cloud changes the color when the upper and lower boundaries (the two Senkou lines) are crossing. On trading platforms usually a rising trend is accompanied by a green cloud, while a falling trend is accompanied by a red cloud, so when the cloud turns from green to red, bulls should take that into consideration, while if the cloud turns from red to green, this should be interpreted as not a good sign for bears.

Last but not least, one should look at the Chinkou line as whenever it comes and meets price then that is a possible time for the present price action to find support/resistance or to continue trending.
The recording that comes with this sub chapter shows you all these three situations and gives more details regarding the overall interpretation.