Tenkan-Sen

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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.


Also known as "Tenkan-Sen line" or simply "Tenkan line".

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 TERMS
  1. Ichimoku Cloud

    A chart used in technical analysis that shows support and resistance, ...
  2. Ichimoku Kinko Hyo

    A technical indicator that is used to gauge momentum along with ...
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  4. Support (Support Level)

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    A component of the Ichimoku Kinko Hyo indicator that is primarily ...
RELATED FAQS
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