Ichimoku Kinko Hyo
The Ichimoku Kinko Hyo indicator works best with daily and weekly charts. It shows the current market trend, as well as the support and resistance levels. It also generates buy and sell signals.
Ichimoku Kinko Hyo consists of five indicators.
|Tenkan sen||Average of the highest high and lowest low in the previous 9 periods|
|Kijun sen||Average of the highest high and lowest low in the last 26 periods|
|Chikou span||Current closing price shifted back 26 periods|
|Senkou span A||Average of Tenkan sen and Kijun sen shifted forwards 26 periods|
|Senkou span B||Average of the highest high and lowest low in the previous 52 periods, shifted forwards 26 periods|
On charts, the area between senkou span A and senkou span B is referred to as the “cloud” and is shaded in. It has the following significance:
- There is no market trend if the price is inside the “cloud”
- Senkou span A and senkou span B are support lines if the price is above the “cloud”
- Senkou span A and senkou span B are resistance lines if the price is below the “cloud”
- A buy signal occurs when chikou span crosses the price line from below
- A sell signal occurs when chikou span crosses the price line from above
- The price will probably continue to increase if it’s above the kijun sen line
- A trend change may happen if the price crosses the kijun sen line
- There’s a bullish trend when it’s rising
- There’s a bearish trend when it’s falling
- There’s no trend when it’s flat
- Crossing from below is a buy signal
- Crossing from above is a sell signal
You can find more information about technical indicators in the MetaTrader 4 User Guide. Select Help > Help Topics > Analytics > Technical Indicators.