Edge to Edge — The Highest Probability Ichimoku Trade
Edge to Edge (E2E) is the highest probability trade setup in the Ichimoku system. When activated, price travels from one edge of the Kumo cloud to the opposite edge. It acts as a leading indicator for macro trend reversals and typically produces 4–6+ R setups. Three specific prerequisites must ALL be met before the setup is active.
When activated: price enters the cloud at one edge and travels to the exact opposite edge
Works best on higher timeframes: daily, 2-day, weekly; solid on 4H and 6H
Typical RR: 4 to 6+ R setups; macro trend reversal signal
Prerequisite 1: Weak Bullish or Bearish TK Crossover — Tenkan crosses above (bullish) or below (bearish) Kijun
Prerequisite 3: Strong, clean close INSIDE the Kumo cloud — decisive candle not an indecision doji
ALL THREE prerequisites must be met simultaneously — missing any one invalidates the E2E setup
Lesson
Three Entry Options and Trade Management
Once all three E2E prerequisites are met, three entry approaches are available — from most aggressive to most conservative. Trade management is straightforward: stop loss below or above the cloud (depending on direction), target at the opposite edge of the cloud. The high R multiple comes from the distance across the cloud which is often very large on higher timeframes.
Entry Option 1 (Most Aggressive): blind market order immediately when all 3 prerequisites are met
Entry Option 2 (Moderate): wait for a Tenkan retest after the prerequisites are met; set limit orders at the Tenkan
Entry Option 3 (Most Conservative): use LTE methodology — identify an S/R flip near the Kijun, wait for a trigger (bullish engulfing, etc.)
Stop Loss: below the cloud for bullish E2E; above the cloud for bearish E2E
Target: opposite edge of the Kumo cloud — this is the defined destination once E2E is activated
Cloud width matters: a wide cloud on the daily or weekly chart produces the largest R multiples
Once the opposite edge is reached: the E2E is complete; often the cloud itself is then broken on the next leg
Check Yourself
All three Edge to Edge prerequisites have been met on the daily chart: a weak bullish TK crossover, the Chikou Span is above price, and there has been a strong decisive candle close inside the Kumo cloud. Where is the defined price target for this E2E setup?
The opposite edge of the Kumo cloud — when E2E is activated, price travels from the bottom edge of the cloud (entry close) to the top edge of the cloud (target), or from the top edge to the bottom edge for bearish E2E; the cloud width determines the R multiple
The Kijun-sen level — when price closes inside the cloud the next significant Ichimoku level is the Kijun; the E2E target is always the base line that acts as the mean reversion point within the cloud
The Tenkan-sen level — the TK crossover that triggered the E2E setup defines the first target; price must reach the Tenkan before a secondary target at the cloud edge can be considered
Answer it (with a live chart) in the interactive lesson.
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