A Sanyaku Kouten that Mooned

TradingView2026/03/07 21:09

By:TradingView

I had a young fellow from Belgium contact me here recently. He's keen on learning Ichimoku, and I used this chart of UAA to illustrate an absolutely textbook Sanyaku Kouten (Three-Condition Turn for the Better). I thought I'd share it with a broader audience.

Ichimoku isn't simply an indicator--it's a holistic trading system. Learn all the nuts and bolts of time and wave theory, kairi, geometry, etc., and you've got something. Ichimoku dovetails perfectly with Western modalities like trend line analysis.

I change the default colors on something like LuxAlgo's Ichimoku Theories as follows: Chikou Span yellow, Tenkan-sen red, and Kijun-sen blue. Let's look at this chart to see what went right.

In August of last year, UAA missed earnings. To say the market reacted badly is an understatement. It gapped down, and Mr. Market gave it the boots for months afterwards. This, however, created a wonderful down-sloping trend line. Price broke above this trend line and confirmed above in late December.

Uncle Itchy here didn't pull the trigger until the Sanyaku Kouten was confirmed at the end of the year. It was an absolutely perfect setup: a Chikou Span breakout in which it was immediately disentangled from past price 26 bars to its left to satisfy the Open Space Rule, then the Tenkan-sen crossed above the Kijun-sen for a golden cross, then the Kumo breakout.

After this, it was simply a matter of watching price ride Tenkan-sen up. Some very conservative traders would have gotten out shortly after the huge impulse candle on 6 Feb. A lot would have gotten out as price dropped through Tenkan-sen. Most everybody would have been out at the Kijun-sen cross.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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A Sanyaku Kouten that Mooned

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