Now let’s try to find out more about Ichimoku Kinko Hyo and what each of the lines is for.
Kijun Sen (blue line): This line is also called the standard line or baseline.
It is calculated by averaging the highest high and the lowest low for the past 26 periods.
Tenkan Sen (red line): they also know this as the turning line.
It is derived by averaging the highest high and the lowest low for the past nine periods.
Chikou Span (green line): This is called the lagging line.
It is today’s closing price plotted 26 periods behind.
Senkou Span (orange lines): The first Senkou line is calculated by averaging the Tenkan Sen and the Kijun Sen and plotted 26 periods ahead.
The second Senkou line is determined by averaging the highest high and the lowest low for the past 52 periods and plotted 26 periods ahead.
Got it? Well, it’s not really necessary for you to memorize how each of the lines is computed.
What’s more important is for you to know how to interpret these fancy lines.
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