Ichimoku Kinko Hyo Technical Indicator [Oscillator]
Ichimoku Kinko Hyo — технический indicator , consisting of a set of individual indicators that can be used as a ready-made trading strategy. In short, this set is simply called "Ishimoku" and it can be used to determine the direction of market movement, find the best support and resistance levels, as well as to find signals to enter the market. The indicator is best used on high timeframes: a week or a day.
Kinko Hayo Ishimoku Indicator is standard for MetaTrader4 terminal.
The technical Ichimoku Kinko Hyo indicator includes 4 different indicators, as well as 3 time intervals, on which the indicators are built:
— Tenkan-sen indicator (red chart in the figure) reflects the average price value for the first time interval in the settings and is calculated by summing the maximum and minimum for a given number of bars, divided by two.
— Kijun-sen indicator (the blue graph in the figure) shows the average price value for the second time interval in the settings.
— Chinkou Span indicator (green chart in the figure) shows the closing price of the current candle and is shifted along the time axis by the number of bars equal to the time period of the Kijun-sen indicator.
— Indicator Senkou Span A (Kumo Up) (orange chart in the figure) reflects the middle of the distance between the Tenkan-sen and Kijun-sen indicators and is shifted forward on the time axis by the number of bars equal to the time period of the Kijun-sen indicator.
— Indicator Senkou Span B (Kumo Down) (purple chart in the figure) reflects the average price value for the third time interval in the settings and is shifted forward on the time axis by the number of bars equal to the time period of the Kijun-sen indicator.
Kinko Hayo Ishimoku indicator cloud
The distance between the Senkou A and B indicators is traditionally shaded in a different color on the chart and is called "Cloud.". This "Cloud" is designed to determine the direction of the trend of the price movement, as well as support levels and resistances.
If the price is located inside the "Cloud", then we should talk about sideways movement of the market, with the Senkou A and B indicators as support and resistance, respectively.
If the price chart is above the "Cloud", then state upward trendand the indicators play the role of supports. In the opposite case, the trend will be downward, and the Senkou A and B indicator lines as resistances.
Ichimoku Kinko Hyo indicator trading signals
Trading signals Ichimoku Kinko Hyo indicator is determined in two ways:
1. The direction of the intersection Chinkou Span line of the price chart determines the signals: from the bottom to the top - a signal to buy, from the top to the bottom - a signal to sell.
2. Kijun-sen line указывает общее настроение рынка — если цена выше Kijun-sen, цены, скорее всего, продолжат рост, если ниже — снижение. Если ценовой график пересекает линию Kijun-sen, то нужно быть готовым к смене trend. In addition, the Kijun-sen line indicates trading signals: сигнал на покупку появляется при пересечении Tenkan-sen линии Kijun-sen снизу вверх. Сигнал к продаже — сверху вниз.