Indicator «Ichimoku Kinko Hyo»
A little history. Ichimoku indicator was invented by a Japanese analyst Hosoda. But the names of the indicator went from Alias creator Sanzhdin Ichimoku. Initially, the indicator was created to predict the further movement of the indices in the economic market of Japan. But then began to apply the indicator in predicting all the tools that are on the stock exchange: currency pairs, stocks, indices. This indicator is referred to as oscillators.
The purpose of the indicator. With this indicator, a trader can determine the levels of support, market trend , signals to buy and sell financial instruments. Most experts and analysts are advised to use this indicator in the weekly or daily charts, it is significant way to increase the efficiency indicator for forecasting.
The structure of the indicator. Ichimoku consists of five lines:
1. Tenkan - sen shows the average price for the first time. The value of this line is defined as the sum of the maximum and minimum value, divided by two.
2. Kiyun - sen displays the price for the second time
3. Chinkou Span shows the current closing price of candlesticks. The line moved back to the value of the second time interval.
4. Senkou Span A shows the middle of the distance between two previous lines shifted forwards by the value of the second time interval;
5. Senkou Span B shows the average price value during the third time interval shifted forwards by the value of the second time interval.
The distance between the two lines Senkou hatched, and get in the end Ichimoku cloud.
Ichimoku Analysis. (Focus on the picture)
Cloud. Thanks to the cloud, the trader can determine the current situation on the stock market. The values of the cloud is determined by its position relative price chart. If the cloud is above the price chart, the edges of the clouds will be price resistance levels (the bottom line - the first level, the top - the second level). If the cloud is a price chart, the edges will be the support levels (the top line - the first level of support, bottom - the second level of support). Thus, the price may be between the lines clouds. In such cases, the market is not trending and better at this time not to make orders, as the line will support and resistance levels. Signal for the trader to buy or sell can be cross cloud chart. If the cloud crosses the price chart from top to bottom - is a signal to sell, and if the bottom up, it is a signal to sell. Thus, traders have noticed that the price movement before crossing the clouds, is the movement of prices after the intersection. For example, if the price before crossing the cloud rose from the bottom up by 20 points, after crossing it will rise by another 20 points. This theory is 95% works in practice, but as you know, the Forex market unpredictable and there are times that of the trend can not be predicted.
Kiyun sen. Kindzhun September - the main line indicator. This line can reliably determine the future trend. On the basis of this line is the trend - if it is below the graph, then the prices will continue to rise. Just this line may file trader signals to buy and sell. A buy signal - line Tenkan Sen crosses kindzhun September downward. A sell signal - line Tenkan Sen crosses kindzhun September upwards.
Tenkan sen. The line that shows the average price for the first time. This line will help the trader to determine the upward or downward trend. If Tenko September is horizontal, then the market is in a flat, and better resist the detention orders.
As you have probably noticed, Ichimoku Kinko Hyo, a universal indicator, which consists of five indicators. Creator, Sanzhdin Ichimoku noticed that these indicators give phenomenally accurate forecast further price movement. Over the years of practice, many traders assessed this indicator, you also have the chance to earn a lot of money, the SPIRIT indicator data. Use the tips in this article, analyze the data of the indicator, it is you may notice more signals to buy or sell that are not yet known.