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Ichimoku Forex Forecast by Integra Capital Ltd.
06-12 november 2006
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06-12 november 2006
Ichimoku Forex Forecast by Integra Capital Ltd.
07.11.2006
USDCHF
On Monday the Swiss franc oscillated on one level and formed a candlestick "a shooting star" which, being after the big white candlestick, can precede the falling which has occured in today's Asian session. Dynamics of a rate points to the begun of consolidation between support on SSA resistance on KS and vicinity of ChS to the price chart confirms it. Herewith the disposition of the price above Up Cumo speaks about opportunities of its rise, but "a deadly cross", forecasts continuation of falling. Therefore the situation with the Swiss currency now ambiguity and breakout of one of the borders of consolidation will point to a direction of the further dynamics.
EURUSD
The rate of euro on Monday and today's Asian session rose, rebounded from fast trend line TS upside, and by present time has mounted above Cumo. If on results of the today's trades it will manage to be remain above SSB, will appear the serious premises for the beginning an up trend on the European currency as rise ChS above the price chart and "a golden cross" also is given to a Bullish pattern. SSA already has almost touched SSB and its rise above it becomes an additional Bullish pattern.
GBPUSD
On Monday the British pound fell in price, tested by the bottom shadow of a candlestick to the support on fast trend line TS, and in today's Asian session its rate has risen. If the today's trades will confirm a rebound of a rate from TS upside, it will give the additional acknowledgement of strength of a Bullish trend which presence now point to many IKH-patterns: rise of the price above Cumo, and ChS above the price chart, "a golden cross" and future Up Cumo. Occurrence of "a three-line pattern" will confirm trend's long term.
USDJPY
The Japanese Yen on Monday continued the rose and tested the basic trend has line KS, and in today's Asian session it has started to fall. If the today's trades will confirm a rebound of the price from KS downside, it will point to continuation of consolidation between support on SSA and resistance on KS. Interlacing of ChS with the price chart also speaks about consolidations, but "a deadly cross", mean an opportunity of falling, and the disposition of the price above Up Cumo testifies to probability of renewal of a Bullish trend. Breakout by one of borders of consolidation should clear up its further dynamics.
USDCAD
On Monday the Canadian dollar oscillated on one level, formed a candlestick "a grave stone" testifying to uncertainty in the market and at probability of its falling, and in today's Asian trading session the rate has started to decline. Appeared yesterday "a deadly cross" puts under doubt an opportunity of the beginning of an up trend which point to a disposition of a rate above Cumo, ChS above the price chart and future Up Cumo. Now the price is consolidated above Cumo to what horizontality TS testifies and its further dynamics is ambiguity.
AUDUSD
The Australian dollar on Monday rose in price, rebound from support on fast trend lines TS upside, and in today's Asian session its growth has proceeded. It is confirmation of strength of an up trend to which all IKH-patterns now testify: rise of a rate above Cumo, and ChS above the price chart, "a golden cross", "a three-line pattern" and future Up Cumo.
NZDUSD
On Monday the rate of the New Zealand dollar oscillated above trend lines, formed a black candlestick "hummer" point to an opportunity of rise, but in today's Asian session the rate has continued to slowly fall. Despite of it, now IKH-patterns: a disposition of the price above wide Up Cumo, and ChS above the price chart, "a golden cross" and "a three-line pattern" testify to a long-term Bullish trend on the New Zealand currency with support on TS.
GBPCHF
Cross-country-rate of the British pound to the Swiss franc on Monday slightly declined, and today's Asian session remained almost constant. Horizontality of support on fast trend line TS means consolidation of cross-country, but all IKH-patterns: a disposition of a rate above wide Up Cumo, and ChS above the price chart, "a golden cross" and "a three-line pattern" speak about continuation of a long-term Bullish trend. The rate of the British pound to US dollar now is in an up trend, and the Swiss franc was consolidated, that points to probability of rise of cross-rate of these currencies.
On Monday the US dollar stopped the rise and showed different dynamics to the major currencies. The Swiss franc, the Japanese Yen and Canadian dollar have not managed yet to begin the up trends and were consolidated. The euro again rises in price, but, despite of a number of Bullish patterns, about the beginning of an up trend to speak while early. The British pound, the Australian and New Zealand dollars try to continue of the up trends, and cross-rate of the British pound to the Swiss franc was consolidated at top of a long-term Bullish trend.
08.11.2006
USDCHF
On Tuesday the Swiss franc declined, but the long bottom shadow of the black candlestick tested the Cumo's upper boundary SSA, speaks about weak of the Bearish market, and in today's Asian trading session the rate has few risen. Such dynamics points to continuation of consolidation between support on SSA and resistance on KS, and vicinity of ChS to the price chart confirms it. Herewith disposition of the price above Up Cumo testifies to an opportunity of its rise, but "a deadly cross" forecasts continuation of falling. It makes a situation with the Swiss currency very ambiguity and breakout of one of the borders of consolidation will point to a direction of the further movement of a rate.
EURUSD
The rate of euro on Tuesday again breakout of resistance SSB upside and left Cumo, and in today's Asian session it has a little fallen. It forms seriously premises to the beginning of a Bullish trend as rise ChS above the price chart, "a golden cross" and started to be formed yesterday future Up Cumo also is given with Bullish pattern. Occurrence of "a three-line pattern" will point to long-term of trend rise, and as support now if SSB.
GBPUSD
On Tuesday the British pound rose in price, rebounded from support on fast trend line TS upside, and in today's Asian session its rate has slightly declined. The rebound of the price from TS upside confirms strength of a Bullish trend to which presence almost all IKH-patterns now testify: rise of the price above Cumo, and ChS above the price chart, "a golden cross" and future Up Cumo. Occurrence of "a three-line pattern" will confirm long-term of trend rise.
USDJPY
The Japanese Yen on Tuesday rebound from resistance on the basic trend line KS downside and declined, tested by the bottom shadow of candlestick the support on SSA, and in today's Asian session its change were insignificant. It means continuation of consolidation of a rate between Cumo and KS which horizontality, together with interlacing of ChS with the price chart also points to range dynamics of the price. But "a deadly cross" speaks about an opportunity of falling, but the disposition of the price above Up Cumo testifies to probability of renewal of a Bullish trend. Breakout by one of borders of consolidation should clear up its further dynamics.
USDCAD
On Tuesday the Canadian dollar oscillated on one level, formed a candlestick "long-legged doji" testifying to balance in the market and in today's Asian session the rate has started to rise. Horizontality of TS speaks about continuation of consolidation, "a deadly cross" gives a Bearish pattern, but a disposition of a rate above Cumo, ChS above the price chart and future Up Cumo point to an opportunity of rise. Therefore a situation with the Canadian currency very ambiguity now.
AUDUSD
The Australian dollar on Tuesday a little rose in price, but the long top shadow of a small white candlestick, points to weak of Bullish market, and in today's Asian session its rate oscillated on one level. But all IKH-patterns: rise of a rate above Cumo, and ChS above the price chart, "a golden cross", "a three-line pattern" and future Up Cumo unanimously testify to continuation of a Bullish trend with support on TS.
NZDUSD
On Tuesday the rate of the New Zealand dollar oscillated on one level, formed a candlestick "long-legged doji", speaking about the market balance, and in today's Asian session its rate has slightly risen. Despite of some consolidation all IKH-patterns: a disposition of the price above wide Up Cumo ", and ChS above the price chart, "a golden cross" and "a three-line pattern" testify to a long-term Bullish trend on the New Zealand currency with support on TS.
GBPCHF
Cross-country-rate of the British pound to the Swiss franc on Tuesday continued to slowly fall, and in today's Asian session remained almost constant. While the price is kept above support on fast trend line TS which horizontality means consolidation of cross-country, but herewith all IKH-patterns: a disposition of a rate above wide Up Cumo, and ChS above the price chart, "a golden cross" and "a three-line pattern" speak about continuation of a long-term Bullish trend. The rate of the British pound to US dollar now is in an up trend, and the Swiss franc was consolidated, that points to probability of rise of cross-country-rate of these currencies.
On Tuesday the US dollar declined to the major currencies. The Swiss franc, the Japanese Yen and the Canadian dollar continue consolidation with a few probability of the further rise. The euro rises in price, and has formed seriously premises to the beginning a Bullish trend, and the British pound, the Australian and the New Zealand dollars while continue the up trends. Cross-rate of the British pound to the Swiss franc was consolidated at top of a long-term Bullish trend.
09.11.2006
USDCHF
On Wednesday the Swiss franc rose, formed a candlestick configuration "Bullish harami", giving a weak upside pattern, and in today's Asian trading session it has again a little fallen. The last rebound of the price from Cumo upside has continued consolidation of a rate between support on SSA and resistance on KS, confirmed by vicinity of ChS to the price chart. Herewith the disposition of the price above Up Cumo testifies to an opportunity of its rise, but "a deadly cross" forecasts continuation of falling. It makes a situation with the Swiss currency ambiguity and breakout of one of the borders of consolidation will point to a direction of the further movement of a rate.
EURUSD
The rate of euro on Wednesday again declined to support on SSB, and in today's Asian session remained almost constant. Herewith almost all IKH-patterns: the disposition of the price above Cumo and rise of ChS above the price chart, "a golden cross" and future Up Cumo also is given with Bullish pattern. Occurrence of "a three-line pattern" will point to a long-term trend rise, and in case of an entrance of the price to within the Cumo will begin the flat period.
GBPUSD
On Wednesday the British pound fell in price, tested the support on fast trend line TS, and in today's Asian session it remained almost constant. Despite of some fell of a rate all IKH-patterns: rise of the price above Cumo, and ChS above the price chart, "a golden cross" and future Up Cumo testify to continuation of a Bullish trend. Occurrence of "a three-line pattern" will confirm long-term of trend rise.
USDJPY
The Japanese Yen on Wednesday and today's Asian session slowly rose, rebounded from the Cumo's upper boundary. It means continuation of consolidation of the price between support on SSA and resistance on the basic trend line KS which horizontality, together with interlacing of ChS with the price chart also point to range dynamics. But "a deadly cross" speaks about an opportunity of falling, and the disposition of the price above Up Cumo testifies to probability of renewal of a Bullish trend. Breakout by one of borders of consolidation should clear up its further dynamics.
USDCAD
On Wednesday the Canadian dollar continued oscillations on one level, formed the second successively candlestick "long-legged doji" testifying about stable equilibrium in the market, and in today's Asian session its rate has started to rise. Horizontality of TS speaks about continuation of consolidation, "a deadly cross" gives a pattern to fall, but a disposition of a rate above Cumo, ChS above the price chart and future Up Cumo, point to an opportunity of rise. Therefore the situation with the Canadian currency continues to keep uncertainty.
AUDUSD
The Australian dollar on Wednesday fell in price and declined to support on TS, and in today's Asian session it has accelerated the falling and has breakout the support downside. If on results of the today's trades the breakout will prove to be true, it will mean the beginning of descending correction with the target on following support KS. But while almost all IKH-patterns: rise of a rate above Cumo, and ChS above the price chart, "a golden cross" and future Up Cumo testify to preservation of strength of a Bullish a trend. A pattern to its renewal will be mount of a rate above upsurge TS.
NZDUSD
On Wednesday the rate of the New Zealand dollar declined, breakout the support on TS downside, and in today's Asian session it has continued the falling and has almost got to following support KS. It speaks about the beginning of descending correction of a Bullish trend, herewith almost all IKH-patterns: a disposition of the price above wide Up Cumo, and ChS above the price chart, "a golden cross" and "a three-line pattern" testify to preservation of trends strength. Mount of the price above upsurge TS, becomes a pattern to renewal of the trend.
GBPCHF
Cross-country-rate of the British pound to the Swiss franc on Wednesday a little rose, and in today's Asian session again has declined, having continued oscillations above support TS which horizontality speaks about consolidation. Herewith all IKH-patterns: a disposition of a rate above wide Up Cumo, and ChS above the price chart, "a golden cross" and "a three-line pattern" testify to an opportunity of continuation of a long-term Bullish trend. The rate of the British pound to US dollar now is in an up trend, and the Swiss franc was consolidated, that points to probability of rise of the cross-rate of these currencies.
On Wednesday the US dollar a little stronger to the major currencies. The Swiss franc, the Japanese Yen and the Canadian dollar continue consolidation with some probability of the further ruse. Euro has declined and has not managed yet to begin an up trend, but the British pound continues an up trend, and its cross-rate to the Swiss franc was consolidated at top of a long-term Bullish trend. The Australian and New Zealand dollars have fallen in price and have begun descending correction of the Bullish trends.
10.11.2006
USDCHF
On Thursday the Swiss franc considerably declined and entranced into Cumo, finished that consolidation of a rate between SSA and KS, and in today's Asian session it continue the falling, and has left Cumo downside. If on results of the today's trades breakout of SSB downside will be confirmed, it becomes a pattern to the possible beginning of a Bearish trend. Decline of ChS under the price chart and "a deadly cross" also point to an opportunity of continuation of falling, but Up Cumo still testifies to preservation of probability of rise of a rate.
EURUSD
The rate of euro on Thursday rebound from support on the Cumo's upper boundary upside and essentially rose, having continued the rise and in today's Asian session. Now almost all IKH-patterns: a disposition of the price above Cumo and mount of ChS above the price chart, "a golden cross" and future Up Cumo speak about the beginning of a Bullish trend. Occurrence of "a three-line pattern" will point to its stability.
GBPUSD
On Thursday the British pound rose in price, and the long bottom shadow of a white candlestick points to probability of the further rise, as has been confirmed in today's Asian session. Now the majority of IKH-patterns: rise of the price above Cumo, and ChS above the price chart, "a golden cross" and future Up Cumo testify to continuation of a Bullish trend. Occurrence of "a three-line pattern" will confirm long-term of trend rise.
USDJPY
The Japanese Yen on Thursday oscillated at one level, formed a candlestick "a grave stone", meaning continuation of consolidation between support on SSA and resistance on the basic trend line KS, with probable of decline subsequently. In today's Asian session the rate has started to fall and has got to the Cumo's upper boundary SSA. IKH-patterns now give the inconsistent information: interlacing of ChS with the price chart points to consolidation, "a deadly cross" speaks about an opportunity of falling, and Up Cumo does not exclude renewal of rise. The rebound of the price from SSA upside will continue consolidation, and its entrance to within the Cumo will mean the beginning of flat dynamics of the Japanese currency.
USDCAD
On Thursday the Canadian dollar a little declined, formed a candlestick "a shooting star", forecasting continuations of falling, and in today's Asian trading session the rate has continued to fallen. Horizontality of trend lines TS and KS together with vicinity of ChS to the price chart speak about continuation of consolidation above Cumo, herewith "a deadly cross" gives a pattern to fall, and a disposition of a rate above Cumo, and future Up Cumo, point to an opportunity of rise. Therefore mount of the price above the trend lines, confirmed by "a golden cross", will be the beginning of an up trend, but the entrance of the price to within the Cumo will mean flat dynamic.
AUDUSD
The Australian dollar on Thursday fell in price, formed a candlestick "a handing man" with the long bottom shadow, speaking about weakness of Bearish market, but in today's Asian session its falling was accelerated. Breakout of support on TS downside means the beginning descending corrections of a Bullish trend with the target of decline on next support KS. But while almost all IKH-patterns: a disposition of a rate above Cumo, and ChS above the price chart, "a golden cross" and future Up Cumo testify to preservation of strength of a Bullish trend. A patterns to its renewal becomes mount of a rate above upsurge fast trend line TS.
NZDUSD
On Thursday the rate of the New Zealand dollar declined, formed a candlestick "handing man ", point to weak of a Bearish market, and in today's Asian session it still has a little fallen in price. It means continuation of descending correction of a Bullish trend with the target of decline on support KS. But horizontality of trend lines TS and KS speaks about consolidations of a rate, and a disposition of the price above wide Up Cumo, ChS above the price chart and "a golden cross" testify to preservation of strength of a Bullish trend and an opportunity of its renewal. A pattern to this becomes mount of the price above upsurge TS.
GBPCHF
Cross-country-rate of the British pound to the Swiss franc on Thursday sharply fell, breakout the first support on TS upside and got to next support KS, and in today's Asian session its falling has proceeded. It means the beginning of descending correction of a Bullish trend with the target of decline on the basic trend line KS, and in case of confirmation of its breakout - on next support SSA. Herewith the horizontality of TS speaks about consolidations of a rate, but many IKH-patterns: a disposition of a rate above wide Up Cumo, and ChS above the price chart and "a golden cross" point to preservation of strength of a long-term Bullish trend and an opportunity of its renewal. The rate of the British pound to US dollar now is in an up trend, and the Swiss franc tries to begin a down trend that points to probability of some rise of cross-rate of these currencies.
On Thursday the US dollar renewed the falling to the major currencies. The Japanese Yen and the Canadian dollar continued consolidation, and pair the Swiss franc began the flat dynamics with the prospects to the further fall. The euro has confidently risen and begins an up trend, the British pound continues an up trend, and its cross-rate to the Swiss franc the beginnings of descending correction of a Bullish trend. The Australian and New Zealand dollars become cheaper and also continue the descending corrections of the up trends.
11.11.2006
USDCHF
On Friday the Swiss franc tried to leave Cumo, but not managed it to make, and was closed above its bottom boundary SSB, formed a black candlestick "hummer" which, being after the downside tendency, often foretells rise. Now the rate has flat dynamics between support on SSB and resistance on SSA, but decline of ChS under the price chart and "a deadly cross", point to probability of continuation of fall of a rate. Herewith thickness of an Up Cumo constantly decreases, that also can as a harbinger of falling of a rate. Therefore breakout of SSB downside will create a serious premises to the beginning of a down trend.
EURUSD
The rate of euro on Friday intensively oscillated and formed a candlestick "a shooting star" which, being after the big white candlestick, can foretell crisis of the up tendency. However the majority of IKH-patterns: a disposition of the price above Cumo and mount of ChS above the price chart, "a golden cross" and future Up Cumo continue to testify to the beginning of a Bullish trend on the European currency. Occurrence of "a three-line pattern" will point to its stability, the support now is fast trend line TS.
GBPUSD
On Friday the British pound rose in price, but the long top shadow of a white candlestick points to weak of the Bullish market. But the majority of IKH-patterns: mount of the price above Cumo, and ChS above the price chart, "a golden cross" and future Up Cumo testify to continuation of a Bullish trend. Occurrence of "a three-line pattern" will confirm long-term of trend rise, and support now is TS.
USDJPY
The Japanese Yen on Friday declined, but the long bottom shadow of a black candlestick speaks about weak of the Bearish market. Horizontality of trend lines TS and KS and vicinity of ChS to the price chart means consolidation of a rate between support on SSA and resistance on KS. However "a deadly cross" points to probability of continuation of fall, and preservation of the price above Up Cumo, - on an opportunity of renewal of rise. It makes a situation with the Japanese currency ambiguity and breakout of one of borders of consolidation will point to a direction of the further movement of the price.
USDCAD
On Friday the Canadian dollar rose and mounted above trend lines TS and KS. It again formed premises for the beginning of a Bullish trend, and rebounded of ChS from the price chart upside, alongside with preservation of a rate above Up Cumo also testify to an opportunity of rise. But "a deadly cross" for the present gives a Bearish pattern and before rise of TS above KS it is possible to speak only about consolidation of a rate above Cumo with support on its upper boundary SSA.
AUDUSD
The Australian dollar on Friday again fell in price and continued descending correction with the target on support KS. But horizontality of trend lines TS and KS points to consolidation of a rate at top of an up trend, about kept which strength now speak almost all IKH-patterns: a disposition of a rate above Cumo and ChS above the price chart, "a golden cross" and future Up Cumo. A pattern to trend renewal becomes mount of a rate above upsurge fast trend line TS.
NZDUSD
On Friday the rate of the New Zealand dollar slightly raised, continued consolidation between horizontal trend lines TS and KS. Herewith the majority of IKH-patterns: a disposition of the price above wide Up Cumo, ChS above the price chart and "a golden cross" testify to preservation of strength of a Bullish trend and an opportunity of its renewal. A pattern to this will be rise of the price above upsurge fast trend line TS.
GBPCHF
Cross-country-rate of the British pound to the Swiss franc on Friday raised, rebounded from support on the basic trend line KS upside, and the long bottom shadow of a white candlestick testifies to presence of Bullish market. Herewith many IKH-patterns: a disposition of a rate above wide Up Cumo, and ChS above the price chart and "a golden cross" also point to preservation of strength of the long-term Bullish trend and an opportunity of its renewal. A pattern to this will be mount of cross-country above upsurge TS. The rate of the British pound to US dollar now is in an up trend, and the Swiss franc begin the flat dynamic, that points to probability of rise of cross-country-rate of these currencies.
On Friday US dollar slowed down the falling to the major currencies, and in relation to the some even managed to become stronger. The rates to the Japanese Yen and the Canadian dollar continue of consolidation, and in relation to "Canadian" there is a probability of the beginning of an up trend, and the Swiss franc began the flat. Euro suspended the rise, but while the Bullish patterns are not cancelled, the British pound continues of an up trend, and its cross-rate to the Swiss franc was consolidated at top of an up trend. The Australian dollar began of descending correction, and the New Zealand dollar continues of consolidation at top of an up trend.
Ichimoku Kinko Hyo is Japanese for "one glance cloud chart." It consists of five lines called Tenkan-sen, Kijun-sen (sen is Japanese for line), Senkou Span A, Senkou Span B and Chinkou Span. The calculation uses four different time periods which we call termT, termK, termS and termC. The Ichimoku Kinko Hyo is graphed over the closing price line. The space between the Senkou spans is called the Cloud, and is usually graphed in a hatched pattern.
The Senkou Spans are support and resistance lines. When the price is in the Cloud, the market is non-trending. When the price is above the Cloud, the higher Span is the first support level and the lower Span is the second support level. When the price is below the Cloud, the lower Span is the first resistance level and the higher Span is the second resistance level.
Kijun-sen and Tenkan-sen are trend indicators. When the price is above the Kijun-sen, prices will likely continue to go up, when the price is below the Kijun-sen, prices will likely continue to go down. The direction of the Tenkan-sen indicates the direction of the trend. If the Tenkan-sen is flat, the market is in a non-trending channel.
The Ichimoku Kinko Hyo Japanese charting technique was developed before World War II with the aim of portraying - in a snapshot - where the price was heading and when was the right time to enter or exit the market. This was all performed without the aid of any other technical analysis technique (or study).
The word Ichimoku can be translated to mean "a glance" or "one look". Kinko translates into "equilibrium" or "balance", with respect to price and time, and Hyo is the Japanese word for "chart". Thus, Ichimoku Kinko Hyo simply means "a glance at an equilibrium chart", providing a panoramic view of where prices are likely to go and the position one should undertake.
Invented by a Japanese journalist with a pen name of "Ichimoku Sanjin", meaning "a glance of a mountain man", Ichimoku charts have become a popular trading tool in Japan, not only with the equity market, but in the currency, bond, futures, commodity and options markets as well. The technique was published over 30 years ago but has only gained international attention within the last few years.
The Ichimoku chart consists of five lines. The calculation for four of these lines involves taking only the midpoints of previous highs and lows, similar to moving average studies. Yet even with this simplicity, the completed chart is able to present a clear perspective of the price action.
Ichimoku uses three key time periods for its input parameters: 9, 26, and 52. When Ichimoku was created back in the 1930s, a trading week was 6 days long. These parameters, thus, represent one and a half week, one month, and two months, respectively. Now that the trading week is 5 days, one may want to modify the parameters to 7, 22, and 44.
Moreover, there are, in fact, different levels of strengths for the buy and sell signals of an Ichimoku chart. First, if there was a bullish crossover signal and the price, at that time, was trading above the Kumo (or cloud), this would be considered a very strong buy signal. In contrast, if there was a bearish crossover signal and the price, at that time, was trading below the Kumo, this would be considered a very strong sell signal. Secondly, a normal buy or sell signal would be issued if the price was trading within the Kumo when the crossover took place. Thirdly, a weak buy signal would be issued if there was a bullish crossover that occurred while the price was trading below the Kumo. On the other hand, a weak signal would be issued if there was a bearish crossover that occurred when the price was trading above the Kumo.
Another striking feature of the Ichimoku charting technique is the identification of support and resistance levels. These levels can be predicted by the presence of the Kumo. The Kumo can also be used to help identify the prevailing trend of the market. If the price is above the Kumo, the prevailing trend is said to be up. And if the price is below the Kumo, the prevailing trend is said to be down.
A final feature of Ichimoku is the Chikou Span. This line can also be used to determine the strength of the buy or sell signal. If the Chikou Span was below the closing price and a sell signal was issued, then the strength is with the sellers, otherwise it is a weak signal. Conversely, if there was a buy signal and the Chikou Span was above the price, then there is strength to the upside, otherwise it can be considered a weak buy signal. This feature can also be incorporated into the other signals.
Chinkou Span shows the closing price of the current candle shifted backwards by the value of the second time interval. The distance between the Senkou lines is hatched with another color and called 'cloud'. If the price is between these lines, the market should be considered as non-trend, and then the cloud margins form the support and opposition levels. If the price is above the cloud, its upper line forms the first support level, and the second line forms the second support level. If the price is below cloud, the lower line forms the first opposition level, and the upper one forms the second level. If the "Chinkou Span" line traverses the price chart in the bottom-up direction it is signal to buy. If the "Chinkou Span" line traverses the price chart in the top-down direction it is signal to sell. "Kijun-sen" is used as an indicator of the market movement. If the price is higher than this indicator, the prices will probably continue to increase. When the price traverses this line the further trend changing is possible.
Another kind of using the "Kijun-sen" is giving signals. Signal to buy is generated when the "Tenkan-sen" line traverses the "Kijun-sen" in the bottom-up direction. Top-down direction is the signal to sell. "Tenkan-sen" is used as an indicator of the market trend. If this line increases or decreases, the trend exists. When it goes horizontally, it means that the market has come into the channel.
Most traditional technical analysis techniques are based on the open, high, low, close or average price. Others may use volatility while fixed scales such as Fibonacci numbers have also been applied. But the results are the same. Support and resistance levels are always depicted as a point or a line.