Ichimoku Kinko Hyo
Ichimoku Kinko Hyo Technical Indicator
Section titled “Ichimoku Kinko Hyo Technical Indicator”The Ichimoku Kinko Hyo Technical Indicator is a tool that characterizes market trends, support and resistance levels, and generates buying and selling signals. It is most effective when used with weekly and daily charts.
Signal Lines
Section titled “Signal Lines”The Ichimoku Kinko Hyo indicator uses 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 shows the closing price of the current candle shifted backwards by the value of the second time interval. The distance between the Senkou lines is hatched with another color and called the cloud. If the price is between these lines, the market is considered non-trend, and the cloud margins form the 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 higher than this line, prices will likely continue to increase. When the price crosses this line, a trend change is possible. It can also be used to generate signals. A bottom-up crossover between the Tenkan-sen and Kijun-sen lines 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 as an indicator of market trend. If this line is increasing or decreasing, a trend exists. When it moves horizontally, it indicates that the market is in a channel.