Chikou Span Strategy — Step-by-Step Guide & Transcript

[00:02] going to delete four of them. Only this one stays, the Chiku span. The line that almost every trader opens, looks at, and completely ignores. And by the end of this video, you will understand exactly why ignoring it is a mistake. So, what

[00:17] does this line actually do? Only one job. It takes today's closing price and draws it 26 candles back in time. That is it. No formula, no average, no maths at all. What that means is, when you look at this line, you are seeing

[00:32] today's price standing right next to the price from 26 candles ago, side by side. Now, look at this. The line is stuck inside a group of old candles, crowded on all sides. Old buyers above, old sellers below, no clear direction. Think

[00:47] of it like heavy traffic. Same car, same engine, but you are crawling. No trade Now, watch what happens when it breaks above. No old candles. Just empty chart. A clean open road. This is what we call

[01:01] free space. And on that empty highway, the same car flies. Setting this up takes 30 seconds. Open a 1-minute chart, add the Ichimoku indicator, then go into settings and turn off Tenkan, Kijun, Senkou A, Senkou

[01:15] B, and the cloud. All of them off. Keep only the Chiku span, leave the setting at 26, and set your expiry to 2 minutes. Your chart should now look like this. Just candles and one single line. Clean, simple, nothing to distract you. But

[01:30] before we get into the actual trading rules, one important note. Trading carries a real risk of loss. Nothing in this video is financial advice, and Everything I'm about to show you is

[01:42] purely for education. So, always practice on a demo account first, and never risk money you cannot afford to lose. All right, the four rules, and all four must be true at the same time. If even one is missing, we do do take the

[01:55] even one is missing, we do do take the trade. Rule one, the trend must be up. Price making higher highs and the Chiku line already sloping upward as it comes close to those old candles. Rule two, the approach. The Chiku line gets close

[02:07] to that group of old candles. The setup is building right now, but this is not an entry. I want to say that again. This is not an entry. This is exactly where beginners jump in too early and lose money. Just watch and wait. Rule three,

[02:21] the break. The Chiku line closes fully above the highest old candle and moves into that empty space. Not touching them, not halfway through them, fully clear. The moment that happens, that is your

[02:33] Rule four, entry. Wait for that candle to close, then enter a buy on the very The arrow always goes on the entry candle, never the signal candle. Two-minute expiry. For a sell, simply flip everything. Downtrend and the Chiku

[02:49] free space underneath. Four words to remember it all, trend, approach, break, entry. Now, here are the situations where we skip the trade completely and this section is just as important as the rules. If the Chiku is still touching

[03:04] the old candles, skip it. If the old candles form a thick wall with no open area above them, skip it. If the market is flat or moving sideways, skip it because in ranging markets, the line drifts in and out of the old candles and

[03:18] gives you fake break after fake break. If another cluster of old candles is sitting just beyond the break point, that is not free space. That is just the next wall and you skip it. And the first two minutes of every new hour, always

[03:31] skip. My personal rule on top of all that, two losses in a row, I close the chart, walk away, and come back fresh. I have put together a completely free PDF guide for this exact strategy,

[03:45] It covers everything we just went through, plus a one-page entry checklist while you trade, so you never second-guess a rule mid-setup. Go grab

[03:57] that now and let's keep going. Now, let's jump straight into the live market so I can show you exactly how this looks in real time, including how to filter your account. Now, watch what is happening on the right side of this

[04:10] chart. The price has been falling for several candles in a row, lower and lower and lower. And when I look at the Chiku Span, it has broken cleanly below the old candles from 26 periods ago into the free space underneath them. No old

[04:24] candles blocking the path. No congestion. Just open space below, exactly like we talked about. Downtrend confirmed. Chiku fully clear below the old candles. This is the setup, so the moment that candle closes, I place the

[04:40] sell right there, on the very next candle. That is the rule, and that is exactly what you see on screen right now. And now, look at what the market does next. It does not hesitate. It does not stall. The very next candle after

[04:53] entry drops hard, a strong red candle, then another, then another. The Chiku had already told us the path below was clear, and price is now using that entire open runway, exactly as the strategy said it would. And there it is.

[05:07] Trade closed. Green confirmation on screen. The price fell exactly into that free space the Chiku had already identified. The same open runway you saw before entry. And that is exactly what we are going to do right now. Chart is

[05:20] So, let's stay right here, keep watching, and the moment the next clean together. Look at this chart carefully before I say anything else. See what happened on the left side. Price fell hard, candle

[05:35] after candle, all the way down to that deep low you can see at the bottom. Then something changed. The selling stopped. The buyers stepped in. And when I looked at the Chiku Span in that moment, it had broken cleanly above the old candles

[05:49] from 26 periods ago. Free space above, no resistance blocking the path, nothing standing in the way. That reversal, that momentum shift, that clean Chikou break, all three confirmed at the same time. That is the setup.

[06:05] So, I entered buy right there on the next candle, exactly the way the rules say. Now, the trade is live and watch what the market does. After that strong entry candle, price pauses for just a moment, a small

[06:19] breath, nothing alarming. This is completely normal after a big reversal move, and this is exactly where impatient traders make their mistake. They see a pause and they panic. They think the trade is going wrong, but

[06:35] look at the Chikou Span. It is still sitting in free space, the structure is still intact, and there is nothing above blocking the price from continuing higher. The setup has not changed, so the decision has not changed, either.

[06:50] You entered for a reason. That reason is still on the chart. Stay in the trade, and the chart delivers exactly what the setup promised. Trade closed, green confirmation on screen. And this is exactly what real trading

[07:04] looks like, not one trade, not two trades, but reading the chart one candle at a time, waiting for the rules to line up, and trusting the setup every single time it appears. So, stay right here because we are not done yet. Look at the

[07:18] left side of this chart first. Price fell hard, hit a deep low, then suddenly reversed with a strong white candle pushing upward. When I looked at the to be clearing the old candles and moving into open space above. The

[07:32] reversal looked strong, the momentum looked real, and all the signals pointed toward a buy. So, I entered on the next candle, exactly as the rules say. The setup looked clean, the move looked genuine, and that is what made this one

[07:46] setups are sometimes the ones that hurt you the most. And almost immediately something feels different about this trade. That strong white candle that not continue. The very next candle starts pulling

[08:00] back, then another. The momentum that looks so powerful on entry is fading fast, and price is sliding right back toward where it came from. This is the part nobody talks about, honestly. You are sitting in a live trade, watching

[08:13] the chart move against you, and every second you are asking yourself the same question. Is this just a small pullback, or is this the setup telling me it was wrong? The answer is always in the chart, and right now the chart is not

[08:25] holding the structure. Trade closed, and that one did not go our way. No green confirmation, no profit, a clean loss. And I am showing you this on purpose separates people who improve from people who quit. Now, let me be completely

[08:40] honest with you about what happened here. The Chiku span did break above the old candles, but that initial spike candle was too fast and too sharp. It created free space that lasted for one candle, and then immediately collapsed.

[08:54] The real lesson is this. A spike is not a trend. A single strong candle does not confirm free space. You need the price structure on the right side of the chart to agree with what the Chiku is doing on the left side. And in this setup, it did

[09:08] not. Every trader you admire has a folder full of losses exactly like this one. The difference is they studied each one, found the mistake, and never made the same error twice. That is the only way this works. So, if you learn

[09:21] something from this loss today, and I genuinely believe you did, then hit subscribe because this channel does not just show you the wins. Every loss, every mistake, every honest lesson gets recorded and shown to you exactly as it

[09:34] happened. That is the only kind of trading education worth your time.