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. Chikou Span

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

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

    A component of the Ichimoku Kinko Hyo indicator that is used ...
RELATED FAQS
  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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