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.)




BREAKING DOWN '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.

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RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. 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 >>
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