Ichimoku Kinko Hyo

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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.

INVESTOPEDIA EXPLAINS '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. Ichimoku Cloud

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

    The rate of acceleration of a security's price or volume. The ...
  3. Resistance (Resistance Level)

    A chart point or range that caps an increase in the level of ...
  4. Support (Support Level)

    The price level which, historically, a stock has had difficulty ...
  5. Tenkan-Sen

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

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