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.

  1. Ichimoku Cloud

    A chart used in technical analysis that shows support and resistance, ...
  2. Chartist

    An individual who uses charts or graphs of a security's historical ...
  3. Tenkan-Sen

    The mid-point between the highest high and lowest low of a particular ...
  4. Resistance (Resistance Level)

    A chart point or range that caps an increase in the level of ...
  5. Momentum

    The rate of acceleration of a security's price or volume. The ...
  6. Support (Support Level)

    The price level which, historically, a stock has had difficulty ...
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  1. How can the Chikou Span help my trading strategy?

    The Chikou span is part of the multifaceted Ichimoku Kinko Hyo charting strategy. The Ichimoku Kinko Hyo is a technique intended ... Read Full Answer >>
  2. How do traders create strategies based on Chikou Span?

    The Chikou span is the lagging indicator component of the Ichimoku Kinko Hyo candlestick trading model. The Chikou is a line ... Read Full Answer >>
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