Forex

Ichimoku

Once you have downloaded metatrader you should open some currencies charts (by default 4 charts are open).

In the left you will have some indicators you can attach to the chart. You can choose a simple moving average, or more complex indicators like Ichimoku.

Ichimoku is a very powerfull and known japanese indicator.

http://www.forex-tsd.com/general-discussion/157-ichimoku.html

This indicator is based on the 4 time intervals and because of that we may see the 5 different line:
- Tenkan-sen is the average value of the price for the first time interval calculated as sum of maximum and minimum for this period of time devided by 2;
- Kijun-sen is the average value of the price for the second time interval;
- Senkou Span A is the middle of interval between two above mentioned lines (Tenkan-sen and Kijun-sen) shifted onward on the value of the second time interval;
- Senkou Span B is the average value of the price for the third time interval shifted onward on the value of the second time interval;
- Chinkou Span is the closing price of the current candle shifted back on the value of the second time interval.

I will go in more details of this indicator later (this week).

Best regards.

6:25 pm