Liquidity Theory
LessonsCourse 4: Liquidity Theory › Ichimoku Masterclass
Course 4: Liquidity Theory · Ichimoku Masterclass

Kijun-sen Bounces and Rejections

Module 5 · Session 1
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Introduction

Kijun Bounce — Mean Reversion in Trending Markets

The Kijun-sen (Base Line) is the dynamic midpoint of the highest high and lowest low over the last 26 periods — functionally equivalent to a dynamic 50% Fibonacci retracement of the current trend. Price in a strong trend always wants to return to the Kijun. When price is far from the Kijun, the trend is overextended. When it reverts to the Kijun, the highest probability entry in that trend direction appears.

Lesson

Trading Kijun Bounces — Entry, Stop, and Target

The Kijun bounce is mechanically simple: in an uptrend, identify the current Kijun price, set limit bids at or slightly below it, and wait for price to revert. When it does, the Kijun acts as support. Stop goes just below the recent swing low with buffer. Target is the prior resistance or next key level. The setup typically delivers 2+ R in strong trends.

Check Yourself

Price is in a clear strong uptrend, making consistent Higher Highs and Higher Lows. After a large impulse move up, price pulls back toward the Kijun-sen level. According to the Kijun bounce strategy, what is the highest probability trade setup?

Answer it (with a live chart) in the interactive lesson.

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Educational content only — trading involves substantial risk and most beginners lose money. Nothing here is financial advice.