Ichimoku Kinko Hyo

DEFINITION of 'Ichimoku Kinko Hyo'

A technical indicator that is used to gauge momentum along with future areas of support and resistance. The Ichimoku indicator is comprised of five lines called the tenkan-sen, kijun-sen, senkou span A, senkou span B and chickou span. This indicator was developed so that a trader can gauge an asset's trend, momentum and support and resistance points without the need of any other technical indicator.

BREAKING DOWN 'Ichimoku Kinko Hyo'

"Ichimoku" is a Japanese word that means "one look." This charting technique was created by a Japanese newspaper writer. It does look very complicated when a trader sees the indicator for the first time, but don't hesitate to give this indicator a try because the complexity quickly disappears once you gain an understanding of what the various lines mean and why they are used.

RELATED TERMS
  1. Senkou Span A

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

    A component of the Ichimoku Kinko Hyo indicator that is used ...
  3. Ichimoku Cloud

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

    A component of the Ichimoku Kinko Hyo indicator that is primarily ...
  5. Tenkan-Sen

    The mid-point between the highest high and lowest low of a particular ...
  6. Kijun Line

    The mid-point between the highest high and lowest low of a particular ...
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RELATED FAQS
  1. How can the Chikou Span help my trading strategy?

    Discover the role and uses of the Chikou span indicator, one of the five lines within the Ichimoku Kinko Hyo candlestick ... Read Answer >>
  2. How do traders create strategies based on Chikou Span?

    Learn about some of the most common trading strategies involving the Chikou span indicator from the Ichimoku Kinko Hyo charting ... Read Answer >>
  3. How do I spot support and resistance from Chikou Span?

    Understand how to interpret the Chikou span, one of the indicators that makes up the ichimoku cloud, and is used to pinpoint ... Read Answer >>
  4. How do I create a profitable strategy when spotting a Tenkan-Sen Kijun Sen cross?

    Learn how to create a simple trading strategy using the Tenkan Sen and Kijun Sen indicators, part of the Ichimoku cloud technical ... Read Answer >>
  5. What is the difference between market indicators and economic indicators?

    Read about the differences between technical market indicators and general economic indicators, and learn how traders and ... Read Answer >>
  6. How do I start using technical analysis?

    Technical analysis is a method of analyzing securities by evaluating current and historical price and/or volume activity. ... Read Answer >>
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