Search Investopedia

Tenkan-Sen

Filed Under » ,
Dictionary Says

Definition of 'Tenkan-Sen'

The mid-point between the highest high and lowest low of a particular security calculated over the past nine periods. The Tenkan-Sen line is the conversion line used specifically in the Ichimoku Kinko Hyo (or Ichimoku Cloud) equilibrium charts. Along with the 26-period moving average, Kijun-Sen, it is one of two moving average lines displayed in the chart.

This line is calculated by using the following formula:

Tenkan-Sen


The resulting line is interpreted in the same manner as a short-term moving average.

Alson known as "Tenkan-Sen line" or simply "Tenkan line".
Investopedia Says

Investopedia explains 'Tenkan-Sen'

The Tenkan-Sen is generally used in combination with the Kijun-Sen to create predications of future momentum. A buy signal is created when the Tenkan-sen line moves above the Kijun-Sen, while a sell signal is created when the Tenkan-Sen line moves below the Kijun-Sen line. 

Many technical traders use the Tenkan-Sen as a tool for predicting levels where the price of the asset will find short-term support. 

When reading Ichimoku Kinko Hyo charts, investors should note that the Tenkan-Sen line leads the Kijun-Sen, and tracks price with more sensitivity because it covers a shorter period of time. When the Tenkan-Sen line crosses and moves above the Kijun-Sen line, this is generally considered a bullish signal. Alternatively, when the Tenkan-Sen line crosses below the Kijun-Sen line, it is considered a bearish signal.

Related Definitions

  •

    Ichimoku Kinko Hyo

    A technical indicator that is used to gauge momentum along with future areas of support and resistance. The Ichimoku indicator is comprised of five lines called the tenkan-sen, ...
    Read More »

  • Momentum

    The rate of acceleration of a security's price or volume. The idea of momentum in securities is that their price is more likely to keep moving in the same direction than to change ...
    Read More »

  • Support (Support Level)

    The price level which, historically, a stock has had difficulty falling below. It is thought of as the level at which a lot of buyers tend to enter the stock. Often referred to as the ...
    Read More »

    • Sushi Roll

      A candlestick pattern consisting of 10 bars where the first five (inside bars) are confined within a narrow range of highs and lows and the second five (outside bars) engulf the first ...
      Read More »

    • Kijun-Sen

      A component of the Ichimoku Kinko Hyo indicator that is primarily used to measure medium-term momentum. This line is calculated by using the following formula:The formula that is used to ...
      Read More »

    • 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 ...
      Read More »

    • Chikou Span

      A component of the Ichimoku Kinko Hyo indicator that is created by plotting recent price movement 26-periods behind the latest closing price. The number of periods used to lag the Chikou ...
      Read More »

    • 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 ...
      Read More »

    • Ichimoku Cloud

      A chart used in technical analysis that shows support and resistance, and momentum and trend directions for a security or investment. It is designed to provide relevant information at a ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions