Ichimoku Kinko Hyo
Ichimoku Kinko Hyo Technical Indicator
Section titled “Ichimoku Kinko Hyo Technical Indicator”The Ichimoku Kinko Hyo Technical Indicator is a tool used to characterize market trends, support and resistance levels, and generate buy and sell signals. It is most effective when used with weekly and daily charts.
Indicator Parameters and Line Descriptions
Section titled “Indicator Parameters and Line Descriptions”The indicator utilizes four different time intervals to determine its parameters. The values of the individual lines in this indicator are based on these intervals:
Chikou Span
Section titled “Chikou Span”The Chikou Span line represents the closing price of the current candle shifted backwards by the value of the second time interval. The area between the Senkou lines, known as the cloud, is shaded with a different color. If the price is within this cloud, the market is considered non-trend and the cloud boundaries act as support and resistance levels.
Kijun-sen
Section titled “Kijun-sen”The Kijun-sen line is used as an indicator of market movement. If the price is above this line, it is likely to continue increasing. When the price crosses this line, a trend reversal may occur. The Kijun-sen line also generates signals. A bottom-up crossover of the Tenkan-sen line with the Kijun-sen line indicates a buy signal, while a top-down crossover indicates a sell signal.
Tenkan-sen
Section titled “Tenkan-sen”The Tenkan-sen line is used to determine market trends. If the line is rising or falling, it indicates a trend. A horizontal movement suggests that the market is in a channel.