Okay, I took a look at the video, and here are a few things to go over.
You really need to punish her with 2, 1, smoke bomb when you block her close attack. If you toward, f+2, 1, smoke bomb you have a sizable range of where you can hit your opponent as the f, 2 input essentially moves you 2 steps closer because of the movement animation included in a standing 2. Kitana's d+1 is a killer and can hit you out of your Smoke aways and Smoke towards. If you want to mount an offensive on Kitana when she's doing d+1, you can do a jump in punch or a jump in kick, but the timing is strict, and your attack has to hit very low to the ground because of her small hitbox (which I believe will be patched soon), but only those options as d+1 stuff all of your other combo starters, especially b+2, 3. Kitana zones with her instant air fans but Smoke can easily counter those with his Shake because his Shake changes his stances from a ready position (normal stance when he is doing nothing) to straight standing up so you have a bit more range for the Shake to catch the air fan. Kitana's butt slam (Square Wave is what I call it), can actually be hit out of using your regular 2 since when you do it, it slightly shrinks your hitbox vertically and extends it horizontally, but unless you time it right she can hit you back, it hits her away from you so you can move away. Additionally, positioning against Kitana rather than for her will definitely be a pain in her neck. Her most optimal position is within where the f+2, 1 which is basically within the distance from when you are right next to her and when you Smoke Away, here's a diagram:
[------------------]
[K+++++++S]
[------------------]
The pluses here are the range that Kitana enjoys, and where the S is is where you can be most dominant. Each plus represents just a single step, so basically seven steps away from Kitana are where you want to be (it's also really close to the max distance of a regular Smoke Away and 3 back dashes). Isn't her only combo starter but within that range, she doesn't have to be afraid of pulling if off because if you aren't blocking she gets a full combo. Keeping this distance is key to controlling the match, if you let her in close then you won't be able to do what you want which is the following:
- Make her throws fans so she has to chip you from practically full screen, this is where you can punish with regular Shake.
- You throwing out your Smoke bombs which is a win-win if she does or doesn't block. If she does, thanks to fleshmasher here, we know that it helps you build meter quickly, and 8 of those build you a bar of meter which you will need for :en Smoke bombs, :en Shakes, :en Teleports and breaker. If she doesn't block then you get a free combo.
- Her Instant air fans leave her vulnerable in the air for a few seconds as she falls. Usually you can't do anything as she recovers but with Meter, you can easily catch her as she falls with :en Smoke bomb leaving you for full combo. If you mistime and she blocks, she eats 2% chip and you build a smidgen of meter, at which point you go back to building meter.
- Kitana thrives in the corner as can you, but since she has unbreakerable high damage combos, it's a better option to try to direct your combos to the center of the stage, by ending combos with just a jumping kick to leave her in the center if the combo directs you there, but if she's heading into the corner, air throw her instead. You can risk getting in a corner for your own high damage and use your :en Teleports to move away.
Meter is pretty important, and I saw you doing :en Shake from a distance, Square Wave goes over it and she can easily position next to you to poke you out of it. Punishing Square Wave with standing 2 is pretty important when she tries to position next to you, if you can hit her out of the air, you're gold, but moving away with your Smoke teleports on Wake Up helps too.
This is what i've thought on during the matchup and it's not really complete because I can still get bodied by Kitanas, but this is what has helped me stay in game against them online.
