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Cloud thickness

The thickness of the Cloud is important. The thicker the Cloud, the less likely it is that prices will manage a sustained break through it. The thinner the Cloud, and a break through has a much better chance.
So, Cloud is Cloud regardless of whether Span A or Span B is on top; the thickness is what matters.

Crossover points

I have often been asked whether the crossover point of the Senkou Spans is important. No, other than the fact that at that point the Cloud is at its thinnest.

Senkou Span B is often a horizontal, as important highs/lows remain in place for a long time.

Trend reversals

Thin sections in the Cloud give us an idea of when the market is likely to change trend. Look ahead and see when, and at what price, it gets very thin. Similarly, if the Cloud is getting fatter and fatter, the chance of a reversal in trend lessens looking out into the future. It gives dates (I’d say three or four days around the central day) when there is an increased chance of a successful move through the Cloud area. Also indicated are price levels that need to be broken for a significant turn, with the move accelerating as prices slice though the crossover point.

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