FOREX TRADERS

[twk000jester]

It's just a function of price and time, thus hours, days, and weeks would provide better information. (For us Blind Monkey traders)

TENKAN SEN ("turning line")
(HIGHEST HIGH + LOWEST LOW)/2 for the past 9 periods

“While many may compare the tenkan sen to a simple 9 period simple moving average (SMA), it is quite different in the sense that it measures the average of price's highest high and lowest low for the last 9 periods.”

KIJUN SEN ("standard line")
(HIGHEST HIGH + LOWEST LOW)/2 for the past 26 periods

Due to the longer time period it measures, the kijun sen is a more reliable indicator of short-term price sentiment, strength and equilibrium than the tenkan sen.

If price has been ranging, then the kijun sen will reflect the vertical midpoint of that range (price equilibrium) via its flat aspect.

Once price exceeds either the last highest high or lowest low within the last 26 periods, however, the kijun sen will reflect that by either angling up or down, respectively.

Thus, short-term trend can be measured by the direction of the kijun sen.

In addition, the relative angle of the kijun sen will indicate the strength or momentum of the trend.

Price equilibrium is expressed even more accurately in the kijun sen than in the tenkan sen, given the longer period of time it considers.

Thus, the kijun sen can be relied upon as a significant level of price support and resistance.

CHIKOU SPAN ("lagging line")
CURRENT CLOSING PRICE time-shifted backwards (into the past) 26 periods

The chikou span represents one of Ichimoku's most unique features; that of time-shifting certain lines backwards or forwards in order to gain a clearer perspective of price action.

In the chikou span's case, the current closing price is time-shifted backwards by 26 periods.

While the rationale behind this may at first appear confusing, it becomes very clear once we consider that it allows us to quickly see how today's price action compares to the price action of 26 periods ago, which can help determine trend direction.

SENKOU SPAN A ("1st leading line")
(TENKAN SEN + KIJUN SEN)/2 time-shifted forwards (into the future) 26 periods

SENKOU SPAN B ("2nd leading line")
(HIGHEST HIGH + LOWEST LOW)/2 for the past 52 periods time-shifted forwards (into the future)
26 periods

Information link - http://www.kumotrader.com/ichimoku_wiki/index.php?title=Ichimoku_components