Senkou Span B

AAA

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).

INVESTOPEDIA EXPLAINS '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 Cloud

    A chart used in technical analysis that shows support and resistance, ...
  2. Indicator

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

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

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

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

    A component of the Ichimoku Kinko Hyo indicator that is primarily ...
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. The Six Things Investors Should Do Now
    Fundamental Analysis

    The Six Things Investors Should Do Now

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center