Kijun Line

AAA

DEFINITION of 'Kijun Line'

The mid-point between the highest high and lowest low of a particular security. The kijun line, also called kijun-sen, is the base line used specifically in ichimoku kinko hyo (or ichimoku cloud) candlestick charts. It is one of two moving average lines displayed in the chart, and is a 26-period moving average. (The other line, tenkan-sen, is a nine-period moving average.)




INVESTOPEDIA EXPLAINS 'Kijun Line'

When reading ichimoku kinko hyo, investors should note that the kijun line lags behind the tenkan-sen, and trails price less sensitively because it covers a longer period of time. When tenkan-sen crosses and moves above the kijun line, this is generally considered a bullish signal.

RELATED TERMS
  1. Ichimoku Cloud

    A chart used in technical analysis that shows support and resistance, ...
  2. Ichimoku Kinko Hyo

    A technical indicator that is used to gauge momentum along with ...
  3. Momentum

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

    The price level which, historically, a stock has had difficulty ...
  5. Crossover

    The point on a stock chart when a security and an indicator intersect. ...
  6. Tenkan-Sen

    The mid-point between the highest high and lowest low of a particular ...
Related Articles
  1. Trading Strategies

    Momentum Trading With Discipline

    This type of strategy demands controlled decision-making, requiring a continual refinement of entry and exit techniques.
  2. Trading Strategies

    MACD Histogram Helps Determine Trend Changes

    Learn how this momentum indicator is used to determine price action on a stock.
  3. Technical Indicators

    A Primer On The MACD

    Learn to trade in the direction of short-term momentum.
  4. Bonds & Fixed Income

    Dragons, Samurai Warriors And Sushi On Wall Street

    From samurai to sushi, there's no denying the East Asian influence on investing terminology.
  5. Forex Education

    An Introduction To Ichimoku Charts In Forex Trading

    Discover how this high-flying application can be used in forex trading.
  6. Forex Education

    Introduction to Types of Trading: Technical Traders

    Learn about the different traders and explore in detail the broader approach that looks to the past to predict the future.
  7. Forex Education

    A Glance At An Equilibrium Chart

    The easy-to-use Ichimoku chart can tell you quite a bit in just one glance.
  8. Stock Analysis

    A Trader's Look at the S&P 500

    Moving averages are sending an important signal, and it's probably not what you think.
  9. Chart Advisor

    Is Now the Time to Invest in North America?

    Bullish chart patterns across the North American markets suggest that now might actually be a wise time to allocate closer to home.
  10. Chart Advisor

    These Oil Service Stocks Are Ready For A Move Higher

    In the oil services sector, active traders have been trying hard to establish a floor and the double bottom pattern that is appearing on the chart suggests that a short-term reversal could be ...

You May Also Like

Hot Definitions
  1. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  2. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  3. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  4. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  5. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  6. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
Trading Center