In using the Kijun Sen, we know that the trend has to be a minimum
26 days established. What does this mean? Will we miss the beginning
of the trend ? The answer to that question is yes. We will definitely miss
the beginning of the trend because we are 'Waiting for the trend to establish it self. Why take a risk if price has not proven itself to us that a trend can exist? If we get into a trade that is not in a trend then it is in consolidation. With consolidation, your account will swing positive and negative and back and forth.
• When the Kijun Sen is flat, it indicates that the price is consolidating
and not trending (Figure 1.19).
• The Kijun Sen is a key support/resistance value. When price crosses
the Kijun Sen, it is a major accom plishment because it broke a major
support/resistance value (Figure 1.19).
• When price crosses the Kijun Sen, it indicates that a trend change may
occur. This is key to determine if a maj or pullback or a trend reversal
is about to occur. Neither one of them can occur until price crosses
over the Kijun Sen (Fi gure 1.19).
• With price crossing over the Kijun Sen, one of two possible scenarios
can occur:
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