Senkou Span B

DEFINITION of 'Senkou Span B'

A component of the Ichimoku Kinko Hyo indicator that is used to create the 'cloud' of the indicator. Senkou span B is always plotted alongside Senkou span A and the area between the two lines is shaded. The shaded area, known as the cloud, is then used to give traders an idea of future support and resistance. Senkou span B is calculated by using the following formula:

Senkou Span B



Senkou span B is generally regarded as the slowest moving component of the Ichimoku indicator because it is created by using the greatest number of time periods in its calculation (generally 52 time periods).

BREAKING DOWN 'Senkou Span B'

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 two senkou spans cross over each other.

RELATED TERMS
  1. Ichimoku Kinko Hyo

    A technical indicator that is used to gauge momentum along with ...
  2. SPAN Margin

    Short for standardized portfolio analysis of risk (SPAN). This ...
  3. Kijun Line

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

    The mid-point between the highest high and lowest low of a particular ...
  5. Replacement Chain Method

    A capital budgeting decision model that is used to compare two ...
  6. Signal Line

    A moving average plotted alongside a technical indicator and ...
Related Articles
  1. Technical Indicators

    Swing Trading With Ichimoku Clouds

    Ichimoku Clouds offer complex market analysis in a single visual image that addresses price, trend and momentum.
  2. Options & Futures

    How Does Your Margin Grow?

    Risk-management tool SPAN margin boosts profitability prospects by helping to determine when to exit a trade.
  3. Forex Education

    Most Commonly Used Forex Chart Patterns

    These chart patterns provide entries, stops and profit targets that can be easily seen.
  4. Stock Analysis

    New Cloud Computing ETF Launches

    Cloud computing has the potential to revolutionize information and data technology, and with the world’s first cloud computing ETF now available, investors have a new way to play this fast-growi ...
  5. Investing

    What's a Transfer Price?

    A transfer price is what one unit of a business charges another unit of the same business for a good or service. The transfer price is usually close to the prevailing market rate when different ...
  6. Stock Analysis

    Fifty Shades Of Big Money

    Don't underestimate the power of a female-driven phenomenon.
  7. Investing Basics

    What are Class B Shares?

    Class B shares are one classification of common stock issued by corporations.
  8. Forex Education

    How To Build A Trading Indicator

    Wondering how people like Elliott and Gann built their famous trading tools? Learn the basics of constructing an indicator.
  9. Your Clients

    Why the Young and Rich Fire Their Advisors

    The top reasons why affluent Millennials fire advisors may sound a little unusual. Here's what advisors should know.
  10. Insurance

    Exploring Oscillators and Indicators: Leading And Lagging Indicators

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com Indicators can be separated into two main types - leading and lagging - both differing in what they show users. Leading ...
RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. What is the difference between transfer price and standard cost?

    Learn about the difference between transfer pricing and standard cost and how companies decide what to charge for products ... Read Answer >>
  4. What is the difference between Berkshire Hathaway's Class A and Class B shares?

    Learn why Warren Buffet created Berkshire Hathaway Class B shares and discover the main differences between Class A and Class ... Read Answer >>
  5. Who needs to fill out IRS Form Schedule B?

    If you have several investments, there's a good chance you'll need to fill out a IRS Form Schedule B. Read Answer >>
  6. A Straddle

    A. Speculates on the rate of change of a security's market price. B. Speculates on the rate of change of an option's market ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center