Chikou Span

AAA

DEFINITION of 'Chikou Span'

A component of the Ichimoku Kinko Hyo indicator that is created by plotting recent price movement 26-periods behind the latest closing price. The number of periods used to lag the Chikou span is customizable so that transaction signals are generated more or less frequently.

Also known as the "lagging span".

INVESTOPEDIA EXPLAINS 'Chikou Span'

The trend is deemed to be upward when the Chikou span is located above the closing prices and downward when the indicator is located below them. Many traders watch for the Chikou span to cross below the closing prices as a signal that the price of the asset is getting exhausted and is likely to experience a pullback.

RELATED TERMS
  1. Ichimoku Cloud

    A chart used in technical analysis that shows support and resistance, ...
  2. Kijun-Sen

    A component of the Ichimoku Kinko Hyo indicator that is primarily ...
  3. Senkou Span A

    A component of the Ichimoku Kinko Hyo indicator that is used ...
  4. Senkou Span B

    A component of the Ichimoku Kinko Hyo indicator that is used ...
  5. Crossover

    The point on a stock chart when a security and an indicator intersect. ...
  6. Ichimoku Kinko Hyo

    A technical indicator that is used to gauge momentum along with ...
Related Articles
  1. Dragons, Samurai Warriors And Sushi ...
    Bonds & Fixed Income

    Dragons, Samurai Warriors And Sushi ...

  2. An Introduction To Ichimoku Charts In ...
    Forex Education

    An Introduction To Ichimoku Charts In ...

  3. A Glance At An Equilibrium Chart
    Forex Education

    A Glance At An Equilibrium Chart

  4. The Six Things Investors Should Do Now
    Fundamental Analysis

    The Six Things Investors Should Do Now

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center