Support and Resistance Levels
To start your education on technical analysis, let's begin with the basics: support and resistance!
- Fibonacci Trading
- How to Use Fibonacci Retracement to Enter a Trade
- Fibonacci Retracements are NOT Foolproof
- How to Use Fibonacci Retracement with Support and Resistance
- How to Use Fibonacci Retracement with Trend Lines
- How to Use Fibonacci Retracement with Japanese Candlesticks
- Using Fibonacci Extensions to know when to take Profit
- Using Fibonacci Extensions to determine the stop to lose Less Money
- Summary: Fibonacci Trading
Popular Chart Indicators
- How to Use Bollinger Bands?
- HOW TO USE THE MACD INDICATOR
- How to Use Parabolic SAR
- How to Use the Stochastic Indicator
- How to Use RSI (Relative Strength Index)
- How to Use ADX (Average Directional Index)
- Ichimoku Kinko Hyo
- Trading with Multiple Chart Indicators
- What is the Best Technical Indicator in Forex?
- Summary: Popular Chart Indicators
Ichimoku Kinko Hyo
Ichimoku Kinko Hyo (IKH), is a kind of Forex market indicator which gauges the
future price motions and predicts the next areas of resistance and support.
Ichimoku Kinko Hyo is a Japanese name which means, a glance at a chart in
equilibrium. An IKH consist of various like and each of them has a significant
meaning, let’s find out about them.
Kijun Sen – This is the baseline, which gets calculated by taking an average of the
lowest low and the highest high. It is estimated for the last 26 period and generally
represented by blue colour. In FX trading, Kijun Sen indicates towards the
futuristic price movements.
Tenkan Sen – Considered as the turning line, it is taken out by averaging the
lowest low and highest high of last nine periods. Mostly represented by red colour,
it talks about the FX market trend.
Chikou Span – Known as the lagging line, it is today’s closing price which has been
plotted 26 periods behindhand, generally of green colour. When this line crosses
price from a top-down signal, it’s a sell signal whereas a bottom-up means a buy
Senkou Span – These are the drawn by taking an average of Tenkan Sen and Kijun
Sen and gets plotted 26 periods ahead. Senkon is represented in orange colour. Intrading, these Senkon lines show the support level by their peak values and
resistance by low ones.
This is a very versatile Forex indicator which provides insights regarding
resistance-support levels, oscillators and crossovers all in one chart. IKH is mostly
used when Japanese Yen is being used in currency pair.