Ichimoku Kinko Hyo (IKH)
Invented by Japanese journalist Goichi Hosada in 1969, the IKH shows price trend levels and support and resistance areas in an innovative way, using various moving averages:
Senkou Span B: calculated by dividing by 2 the average of the highs and lows of the last 52 periods, projected forward by 26 periods.
Tenkan Sen: average between the highest high and the lowest low of the last 9 periods.
Ichimoku is a powerful tool for identifying past trends and help to see future trends, but it is effective only when the market shows a clear direction. In sideways market situations, its effectiveness decreases significantly.
