The Ichimoku Kinko Hyo is a powerful technical indicator used to assess market trends, potential support and resistance levels, and momentum. It consists of several components that help visualize the market's state:
Tenkan-sen (Conversion Line): A fast-moving average. Kijun-sen (Base Line): A slower-moving average. Senkou Span A (Leading Span A): The average of Tenkan-sen and Kijun-sen, shifted forward in time. Senkou Span B (Leading Span B): A slower moving average of the high and low price over a period of 52 periods, shifted forward in time. Chikou Span (Lagging Line): The closing price shifted back in time by 26 periods. This custom version of the Ichimoku indicator adds the vertical mirrored distance feature, which calculates the distance between Senkou Span B and Kijun-sen and then mirrors this distance to create two new lines. These new lines help visualize the range between these key Ichimoku lines.