Senkou Span A

AAA

DEFINITION of 'Senkou Span A'

A component of the Ichimoku Kinko Hyo indicator that is used to measure momentum and future areas of support and resistance. Senkou span A is always plotted alongside Senkou span B and the area between the two lines is filled with shaded indicator lines, also known as the cloud, which is used by traders to predict levels of future support/resistance. Senkou span A is calculated by using the following formula:

Senkou Span A


INVESTOPEDIA EXPLAINS 'Senkou Span A'

The trend is deemed to be downward when Senkou span A is located below senkou span B. In practice, the indicator is most commonly used to predict the reversal of a current trend when the senkou spans cross over each other.

RELATED TERMS
  1. Indicator

    Statistics used to measure current conditions as well as to forecast ...
  2. Resistance (Resistance Level)

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

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

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

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

    A component of the Ichimoku Kinko Hyo indicator that is created ...
Related Articles
  1. Dragons, Samurai Warriors And Sushi ...
    Bonds & Fixed Income

    Dragons, Samurai Warriors And Sushi ...

  2. An Introduction To Ichimoku Charts In ...
    Forex Education

    An Introduction To Ichimoku Charts In ...

  3. A Glance At An Equilibrium Chart
    Forex Education

    A Glance At An Equilibrium Chart

  4. Hypothesis Testing in Finance: Concept ...
    Active Trading Fundamentals

    Hypothesis Testing in Finance: Concept ...

comments powered by Disqus
Hot Definitions
  1. 80-10-10 Mortgage

    A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an ...
  2. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  3. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  4. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  5. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center