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Ichimoku Kinko Hyo |
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Ichimoku is a Japanese terms that means "instant view" or "one glance". Kinko translates into "equilibrium" or "balance". Lastly, Hyo means "chart". Strictly translated, Ichimoku Kinko Hyo means "one glance cloud chart", but the more accurate meaning is "instant view of the balance chart". It is an indicator of support and resistance in the market, and it was developed by Goichi Hosoda, a Japanese newspaper writer, during the early Showa era (1926-1989) and copyrighted by Kabushiki Kaisha Hendou Souken. Ever since Hosoda published his findings in 1969, Ichimoku Kinko Hyo has become a permanent feature in Japanese trading rooms.
The series of lines are comparable to moving averages and are based upon high and low prices. The two Senkou Span (leading) lines are pushed forward in time to represent past support and resistance. The idea is that once established, support will continue to provide support until broken, and then it becomes resistance. The area between the two Senkou Span lines is shaded to resemble a cloud. This "cloud" defines the trend and also acts as support and resistance for price. Basically, if the price is above the cloud then the trend is higher and if it is below the cloud, the trend is lower.
However, the relative positions of the Kijun Sen and Tenkan Sen are also important. (Sen means "line"). Generally, a crossing of the Tenkan Sen above the Kijun Sen is bullish, while a crossing of the Tenkan Sen below the Kijun Sen is bearish. Along with the positions of price against the cloud and the crossing of the Tenkan Sen and Kijun Sen, the comparative position of today's price against that of 26 periods prior decides the strength of the signals.
The Chikou Span (lagging span) is today's price moved back 26 periods. If the Chikou Span is below that of 26 periods ago and a sell signal occurs, it is a stronger signal than had it been above the close of 26 periods ago. The opposite is just as true for buy signals.
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| Symbol |
Rate |
| GBP:CHF |
1.747703 |
| GBP:JPY |
155.484239 |
| GBP:USD |
1.638403 |
| NZD:USD |
0.627050 |
| EUR:CAD |
1.545998 |
| EUR:CHF |
1.516857 |
| EUR:GBP |
0.867915 |
| EUR:JPY |
134.947096 |
| EUR:USD |
1.421994 |
| AUD:JPY |
76.394373 |
| AUD:USD |
0.805000 |
| USD:CAD |
1.087204 |
| USD:CHF |
1.066711 |
| USD:JPY |
94.899879 |
| USD:SEK |
7.613010 |
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History