How to use the Ichimoku Kinko Hyo indicator

How to use the Ichimoku Kinko Hyo indicator

Ichimoku Kinko Hyo, maybe it sounds a bit strange like Japanese. But yes, this indicator is called from Japanese, bro. And at a glance when I see this indicator it seems very complicated and frightening. But after further study it turned out to be very pleasant and not as complicated as it seemed.
So we just start the lesson!
Ichimoku Kinko Hyo is an indicator that is able to measure future price momentum and determine the upcoming support and resistance areas. But the indicator is able to show 3 indicators in 1 indicator (3in1).
To display this indicator into the graph of the price movements of currency pairs is very easy, which is the same as how to display other indicators, just click and set it to finish 🙂 and how to calculate it is not legally thought because there are already counting it.
Wooa become the indicator of Ichimoku Kinko Hyo, looks scary and scary right 🙂 but don’t worry after seeing a brief explanation of each line and shading we will all understand how to use it.
Kijun Sen (blue line) is also called the line or base line standard. This line is calculated based on the average price of highest highs and lowest lows in the last 26 periods.
Tenkan Sen (red line) is also called turning line. This line is calculated based on the average prices of highest highs and lowest lows in the last 9 periods.
Chikou Span (green line) is called lagging line and is obtained from today’s price which is then plotted 26 back periods.
Senkou Span (orange line), the first line is obtained from the average Kijun Sen and Tenken Sen and is plotted for the next 26 periods. The second line is determined by the average price of highest high and lowest low for the last 52 periods and plotted for the next 26 periods.

How to use the Ichimoku Kinko Hyo indicator

When the price is above the Senkou Span it is said that the top line is the first support level and the line below it is the second support level.
And if the price is below the Senkou Span then the opposite applies that the bottom line is the first resistance level and the line above it is the second resistance level.
Meanwhile the blue line or Kijun Sen serves as an indicator of price movements of the upcoming currency pair (forecasting price – forecasting). If the price is higher than the blue line then the price continues to move upwards (uptrend) and if the price is lower than the blue line then the price will continue to move down (downtrend).
And Tenkan Sen is an indicator that functions to determine the trending market (direction of market movement). If this red line moves up or down it means the market is trending and if the move is only horizontal then the market is ranging (consolidated).
Finally, if the Chikou Span or green line crosses (crosses) the price from the bottom up then this is a BUY signal (BUY). And if crossing (crossing) the price from the top down then this is a SELL signal (SELL).
The following is an example of the Ichimoku Kinko Hyo indicator application.
How about it indeed at the beginning it really looks like this indicator is very complicated and frightening but if we have studied it further it turns out to be very very easy and multifunctional.
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