MetaTrader Indicators

Ichimoku Kinko Hyo technical indicator is predefined to generate signals of buying and selling and to distinguish the resistance levels, market support, and market trends. This technical indicator works best at daily charts and on weekly basis.

Four time intervals of different lengths are used to define the dimensions of parameters. Composing this technical indicator the values of individual lines are based on these intervals:

• Tenken-sen shows that the average price value during the first time interval is defined as the sum of minimum and maximum within the given time and divides by 2.
• Kijun-sen shows the average price value during the second time interval.
• Senkou Span A shows that the middle of the distance between the two previous lines has been shifted forwards by the value of the second time interval.
• Senkou Span B shows that the average price value during the third time interval has been shifted forward by the value of the second time interval.

Chinkou Span shows that the closing price of the current candle has been shifted towards the back by the value of the second time interval. The distance between the Senkou lines is formulated with another color and this is known as cloud. If the price is between these lines, the cloud margins form the resistance and support levels and then the market should be considered as non-trend.

• If the price is above the cloud, the first support level forms as its upper line, and the second support level forms as its second line.
• If the price is below the cloud, the first resistance level forms the lower line, and the second level forms as the upper one.
• If the Chinkou Span line passes through the price chart in the bottom-up direction then it’s the signal to buy. If the Chinkou Span line passes through the price chart in the top-down direction then it’s the signal to sell.

The technical indicator of the market movement is the Kijun-sen. If the price is above the indicator, than the prices will probably continue to increase, when the price passes through this line the trend, more changes in the trend are possible.

Another kind of giving signals is using the Kijun-sen. When the buy signal is generated then the Tenkan-sen like pass through the Kijun-sen is in the bottom-up direction. The signal to sell is the top-down direction.

The technical indicator of the market trend is the Tenkan-sen. If this Tenken-sen line decreases or increases, the trend exists. When it’s straight, it indicates that the market has come into the channel.