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Ichimoku Forex Forecast by Integra Capital Ltd.
30 oct - 05 nov 2006
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30 oct - 05 nov 2006
Ichimoku Forex Forecast by Integra Capital Ltd.
31.10.2006
USDCHF
On Monday and today's Asian session the Swiss franc oscillated at one level, after sharp falling last week. Horizontality of trend lines TS and KS and vicinity of ChS with the price chart speaks about consolidation between support SSA and resistance KS, but preservation of a rate above Up Cumo, and TS above KS points to an opportunity of renewal of rise.
EURUSD
The rate of euro on Monday fell, and in today's Asian session oscillated on one level, remaining within the Cumo. It means continuation of flat dynamics of the European currency between support on SSB and resistance on SSA. Herewith interlacing of ChS with the price chart also points to consolidation of a rate, but future Down Cumo and disposition of TS below KS, still testify to an opportunity of falling of the European currency.
GBPUSD
On Friday the British pound again rose in price, formed a candlestick "a white shooting star" often point to an opportunity of a turn of the tendency, but in today's Asian rise has proceeded. Now the majority of IKH-patterns: mount of the price above Cumo, "a golden cross" and future Up Cumo testify about a Bullish trend on the British currency. However horizontality of trend lines TS and KS, together with interlacing of ChS with the price chart speak that consolidation still is not finished. Rise of TS and ChS will finally confirm of an ascending trend, and "a three-line pattern" will point to trend stability. The support now is SSA.
USDJPY
The Japanese Yen on Monday and today's Asian session made weak oscillations at one level. Horizontality of fast trend line TS speaks about consolidation of a rate between support on SSA and resistance on KS, but preservation of the price above Up Cumo, and TS above KS testifies to a kept opportunity of renewal of a Bullish trend. A pattern to this will be mount of a rate above raising fast trend line TS.
USDCAD
On Monday the Canadian dollar rebounded from support on SSA upside and sharply rose, had mounted above resistance on the Cumo's upper boundary SSB. However in today's Asian session it again has started to fallen. If on results of the today's trades the price will return to within the Cumo it will mean continuation of flat dynamics of a rate of the Canadian currency. But the confirmed exit of a rate from the Cumo will create premises for the beginning of an up trend as rise of ChS above the price chart, disposition TS above KS and future Up Cumo testify to an opportunity of the further rise.
AUDUSD
The Australian dollar on Monday and today's Asian session has continued to rise in price, though growth of its rate was slowed down, and the yesterday's candlestick "a white spinning top", points to the few uncertainty in the market. But now almost all IKH-patterns (rise of a rate above Cumo, and ChS above the price chart, "a golden cross" and future Up Cumo) testify about a Bullish trend on the Australian currency. Formation of "a three-line pattern" will confirm stability of trend rise, and the nearest support now is TS.
NZDUSD
On Monday the rate of the New Zealand dollar has rebound from support TS upside and again rose, confirmed the strength of an up trend, and in today's Asian session it has a little fallen. Now almost all IKH-patterns: a disposition of a rate above wide Up Cumo, TS above KS, and ChS above the price chart and "a three-line pattern", point to renewal of a Bullish trend. But horizontality of TS and KS, speaks that consolidation still is not finish, therefore rise of support TS becomes a final pattern about renewal of trend rise.
GBPCHF
Cross-rate of the British pound to the Swiss franc on Monday rebounded from support TS upside and rose, having continued slow rise and in today's Asian session. The rebound of a rate from fast trend line confirms kept strength of Bullish market, and 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 now about an up trend. But while the price still has not finish the technical consolidation to what horizontality of trend lines TS and KS testifies. The rate of the British pound to US dollar now is in Bullish a trend, and the Swiss franc was consolidated, that points to probability of the further rise of cross-country-rate of these currencies.
On Monday the US dollar slowed down the falling and was consolidated to the major currencies. The Swiss franc and the Japanese Yen were consolidated after deep descending correction, and the Canadian dollar has flat dynamics, but makes attempts to begin rise. The euro also continues flat, the British pound has begun an up trend, and its cross-rate to the Swiss franc is consolidated at top of a Bullish trend, with probability of its continuation. The Australian dollar continues of a Bullish trend, and the New Zealand dollar tries to renew of trend rise.
01.11.2006
USDCHF
On Tuesday the Swiss franc again sharply fell, after one-day consolidation, and got to support on SSA, and in today's Asian session it oscillated at one level. Now the vicinity of ChS to the price chart speaks about consolidations, future Up Cumo points to an opportunity of rise of a rate, and formed yesterday "a deadly cross" forecasts falling. It makes a situation with the Swiss currency very ambiguity, and further dynamics of the price to the SSA should clear up: its breakout downside and the entrance of the price within the Cumo will mean begin a flat, and the rebound upside will give hope for renewal of a Bullish a trend.
EURUSD
The rate of euro on Tuesday renewed the rise and has left from Cumo, and in today's Asian session its change was insignificant. Rise of the price above a Cumo, together with formed yesterday "a golden cross" formed strong premises for the beginning of an up trend on the European currency. But ChS now close with the price chart and speaks about market balance, and future Down Cumo forecasting falling, therefore before disappearance of these patterns it is impossible to be assured that a Bullish trend has begun. Support now is SSA.
GBPUSD
On Tuesday the rate of the British pound accelerated the rise, and in today's Asian session it remained almost constant. Now 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 about a Bullish trend on the British currency. Occurrence of "a three-line pattern" will point to trend stability, and now support is TS.
USDJPY
The Japanese Yen on Tuesday continued to fall steadily, breakout the support on SSA downside and entranced into Cumo, but in today's Asian session it has a few risen. If on results of the today's trades the price remains within the Cumo, it will mean begin a flat dynamics between support on SSB and resistance on SSA, but the rebound of a rate from Cumo upside will give hope for renewal of its rise. Now ChS has touched the price chart, and TS has incorporated with KS, point to exhaustion of Bullish market, but wide Up Cumo speaks about an opportunity of rise.
USDCAD
On Tuesday and today's Asian session the Canadian dollar made volatility oscillation at a level of the Cumo's upper boundary SSB, fell yesterday and having risen today. It speaks about consolidations of a rate of the Canadian currency and horizontality of KS confirms it. But ChS now there is above the price chart, and a future Cumo is Up, therefore in case of the decidedly rise of a rate above Cumo will appear premises for its further rise.
AUDUSD
The Australian dollar on Tuesday continued to rise in price quickly, and in today's Asian session its rate oscillated at one level. Now 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 about a strength Bullish a trend on the Australian currency. The nearest support is TS.
NZDUSD
On Tuesday the rate of the New Zealand dollar continued the rise, and in today's Asian session it has declined. Now all IKH-patterns: a disposition of a rate above wide Up Cumo, TS above KS, and ChS above the price chart and "a three-line pattern" point to renewal a Bullish trend, with support on fast trend lines TS.
GBPCHF
Cross-rate of the British pound to the Swiss franc on Tuesday and today's Asian session has continued slow mount, having given a pattern about end of consolidation (rise of trend lines TS and KS). Now 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 continuation of a long-term Bullish trend. The rate of the British pound to US dollar now is in up trend, and the Swiss franc has not certain dynamics, after end of deep descending correction that points to probability of the further rise cross-country-rate of these currencies.
On Tuesday the US dollar continued steady falling to the major currencies. The Swiss franc and the Japanese Yen finished descending correction and have begin flat, and the Canadian dollar also was consolidated. The euro tries to finish flat dynamics and to begin an up trend, and the British pound and its cross-country-rate to the Swiss franc rise in an up trend. The Australian and New Zealand dollars also are in Bullish trends.
02.11.2006
USDCHF
On Wednesday the Swiss franc rebounded from the Cumo's upper boundary SSA and a few rose, having continued slow risen and in today's Asian trading session. Stability of support SSA to breakout points to the keep of a Bullish market, and disposition of ChS above the price chart and future Up Cumo confirm an opportunity of the further rise. However "a deadly cross" gives a Bearish pattern that makes a situation with the Swiss currency inconsistent and not certain.
EURUSD
The rate of euro on Wednesday and today's Asian session has fallen, remaining above support on the upper boundary of Cumo SSA. Such dynamics means, that the European currency yet did not manage to begin an up trend about which opportunity speaks "a golden cross" and rise of the price above Cumo". Herewith interlacing of ChS with the price chart points to consolidation, and future Down Cumo testifies to an opportunity of the further decline. Because return of a rate to within the Cumo will mean flat renewal, but the rise, accompanied mount of ChS above the price chart and SSA above SSB, becomes a pattern about the beginning of a Bullish trend.
GBPUSD
On Wednesday the rate of the British pound oscillated on one level, formed a candlestick " long-legged doji" which, being at top of the market, can precede a turn of the tendency. In today's Asian session the rate remained almost constant, that strengthens uncertainty of a situation. But while 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 kept of strength of a Bullish trend on the British currency. Occurrence of "a three-line pattern" will point to trend stability, and now support is TS.
USDJPY
The Japanese Yen on Wednesday rose, left Como, and having continued rise and in today's Asian session. The rebound of the price from support SSA upside forms premises to the further rise as Cumo is Up. Herewith the vicinity of ChS to the price chart points to consolidation, and "a deadly cross", speaks about an opportunity of new falling. It makes a situation with Japanese currency ambiguity, and further dynamics should bring in it clearness: return of a rate within the Cumo will mean flat renewal, but mount of the price above trend lines TS and KS, will renew a Bullish trend.
USDCAD
On Wednesday the Canadian dollar sharply rose, left Cumo and mounted above trend lines TS and KS, and in today's Asian trading session it has a little declined. This jump forms premises for renewal of a Bullish trend as ChS now is above the price chart, TS - above KS, and future Cumo is Up, that also is Bullish patterns. Increase of support TS will finally confirm the beginning of an up trend.
AUDUSD
The Australian dollar on Wednesday little rose in price, but long shadows of a small white candlestick, testify to market uncertainty, and in today's Asian session the rate has started to fallen. If on results of today falling will be kept, the candlestick configuration "an evening star" usually specifying on end of trend rise will be formed. But while 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 kept of strength of a Bullish trend on the Australian currency. The nearest support is TS.
NZDUSD
On Wednesday the rate of the New Zealand dollar continued rise, but a long top shadow at a small body of a white candlestick speaks about the market uncertainty, and in today's Asian session a rate has started to fallen. In case of if the today's candlestick will appear black, it will form a configuration "an evening star" usually forecasting falling. But while all IKH-patterns: a disposition of a rate above wide Up Cumo, TS above KS, and ChS above the price chart and "a three-line pattern" speak about a long-term Bullish trend of the New Zealand currency with support on TS.
GBPCHF
Cross-country-rate of the British pound to the Swiss franc on Wednesday again rose, and in today's Asian session it has remained almost constant. Now 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 continuation of a long-term Bullish trend. The rate of the British pound to US dollar was now consolidated at top Bullish a trend, and the Swiss franc has not certain dynamics that points to probability of consolidation of cross- rate of these currencies.
On Wednesday the US dollar has made an attempt to rise in the global currency market. The Swiss franc and the Japanese Yen gave the first patterns about an opportunity of renewal of rise though their dynamics very not certain recently, and the Canadian dollar sharply rose and tries to begin an up trend. A situation with Euro also ambiguity, and the British pound, the Australian and the New Zealand dollars are in the Bullish trends, however there were some patterns of crisis of the tendency. Cross-rate of the British pound to the Swiss franc continues a long-term Bullish trend.
03.11.2006
USDCHF
On Thursday and today's Asian trading session the Swiss franc weakly oscillated at a level of support SSA, and horizontality of trend lines TS and KS together with vicinity of ChS to the price chart confirm consolidation. Herewith preservation of the price above Up Cumo speaks about an opportunity of rise of a rate in the further, and "a deadly cross", on the contrary, testifies, that consolidation will end by falling of the price and an entrance to flat.
EURUSD
The rate of euro on Thursday rebounded from support SSA and rose, and in today's Asian session it has remained constant. Rise of a rate above Cumo, and ChS above the price chart and "a golden cross" speak about attempt of the European currency to begin of a Bullish trend, but horizontality of trend lines TS and KS points to consolidation, and future Down Cumo testifies to an opportunity of fall. Therefore, upsurge of fast trend line TS and rise of SSA above SSB become final patterns about the beginning of an up trend.
GBPUSD
On Thursday the rate of the British pound continued oscillations at one level, formed the second candlestick "long-legged dojies " successively, and in today's Asian session its rate remained almost constant. It points to very serious market uncertainty, and horizontality of trend lines TS and KS confirms consolidation. But while 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 kept of strength of a Bullish trend. Occurrence of "a three-line patterns" will point to trend stability, and as support now is TS.
USDJPY
The Japanese Yen on Thursday and today's Asian session made weak oscillations at a level of support SSA, and horizontality of trend lines TS and KS, together with vicinity of ChS to the price chart, confirm the begun consolidation. Herewith preservation of the price above Up Cumo speaks about an opportunity of rise of a rate in the further, and "a deadly cross", on the contrary, points to an opportunity of the further falling and an entrance to flat.
USDCAD
On Thursday the Canadian dollar made intensive oscillation at one level and has formed a candlestick "long-legged doji", testifying about uncertainty in the market, and in today's Asian trading session its rate has slightly risen. However now all IKH-patterns: rise of a rate above Cumo, and ChS above the price chart, "a golden cross", "a three-line patterns" and future Up Cumo speak about the beginning of an up trend with the support on TS.
AUDUSD
The Australian dollar on Thursday a little fell in price after intensive oscillation formed a candlestick "handing man" which, being at top of the market, usually precedes the falling, but in today's Asian session its rate has slightly risen. Horizontality of trend lines TS and KS testifies to the beginning of consolidation, but all IKH-patterns: rise of a rate above Cumo, and ChS above the price chart, " a golden cross", "a three-line patterns" and future Up Cumo unanimously speak about kept of strength of a Bullish trend on the Australian currency. The nearest support now is TS.
NZDUSD
On Thursday the rate of the New Zealand dollar continued the rise, and in today's Asian session it oscillated on one level. All IKH-patterns: a disposition of a rate above wide Up Cumo, TS above KS, and ChS above the price chart and "a three-line patterns" testify to a long-term Bullish trend ob the New Zealand currency with support on TS, but horizontality of conterminous trend lines TS and KS speaks about the begun consolidation.
GBPCHF
Cross-country-rate of the British pound to the Swiss franc on Thursday and today's Asian session made insignificant oscillation at one level, 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 patterns" speak about continuation of a long-term Bullish trend on this cross-country. The rate of the British pound to US dollar was now consolidated at top of an up trend, and the Swiss franc also has range dynamics that points to probability of consolidation of cross-rate of these currencies.
On Thursday the US dollar was consolidated to the major currencies, and in the international financial market the calm was observed. The Swiss franc and the Japanese Yen were consolidated after deep descending correction and their further dynamics is not clear, and the Canadian dollar began a Bullish trend. The euro makes attempts to begin an up trend, but it is required to this additional confirmations, and the British pound, the Australian and the New Zealand dollars were consolidated at top of the Bullish trends. Cross-rate of the British pound to the Swiss franc continues a long-term Bullish though volatility of pairs it is low.
04.11.2006
USDCHF
On Friday the Swiss franc considerably rose, and its rebound from the Cumo's upper boundary SSA upside, gave the first pattern to renewal of a Bullish trend. Mount of ChS above the price chart and Up Cumo also point to probability of continuation of rise, but "a deadly cross" testifies about opportunities of new falling, and horizontality of trend lines speaks about consolidation of a rate between support on SSA and resistance on KS. It makes a situation with the Swiss currency is ambiguity, therefore it is necessary to wait the further patterns: the rebound of a rate from trend lines downside will mean continuation of consolidation, but its breakout upside, accompanied by formation of "a golden cross", will point to the beginning of an up trend.
EURUSD
The rate of euro on Friday essentially declined and again has returned to within the Cumo, renewed flat dynamics between support on SSB and resistance on SSA. Horizontality of trend lines TS and KS also point to consolidation of the European currency, herewith disposition of ChS above the price chart and "a golden cross" speaks about an opportunity of renewal of rise, and future Down Cumo predicts continuation of falling.
GBPUSD
On Friday the British pound fell in price, after several days of range movement. Horizontality of trend lines TS and KS speaks about a proceeding consolidation of the British currency, but 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 kept of strength of a Bullish trend. Occurrence of "a three-line pattern" will point to its stability, and as support now is fast trend line TS.
USDJPY
The Japanese Yen on Friday sharply rose, rebound from support SSA upside, and got to resistance on nearby trend lines. This rebound from Up Cumo is serious pattern to renewal of a Bullish trend, but horizontality of trend lines TS and KS, alongside with interlacing of ChS with the price chart, testifies that consolidation still is not finish, and "a deadly cross", does not exclude new falling of a rate. Further dynamics of the Japanese currency should clear up a situation in the market: the rebound of a rate from trend lines downside will continue consolidation, but its breakout upside, accompanied by formation of "a golden cross", will point to renewal of an up trend.
USDCAD
On Friday the Canadian dollar declined, formed a Bearish candlestick configuration "an evening star", forecasting opportunity of falling. Herewith horizontality of support TS speaks about consolidation, 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, continue to point to probability of renewal of an up trend. A pattern to this becomes a rebound of a rate from upsurge TS upside.
AUDUSD
The Australian dollar on Friday considerably fell in price, continued consolidation at top of up trend with support on TS. Herewith 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 speak about kept of strength of a Bullish trend on the Australian currency and probability of its renewal. A pattern to this will be rise of fast trend line TS.
NZDUSD
On Friday the rate of the New Zealand dollar declined, confirmed consolidation of a rate at top of an up trend with support on horizontal conterminous trend lines TS and KS. But herewith all IKH-patterns: a disposition of a rate above wide Up Cumo, TS above KS, and ChS above the price chart and "a three-line pattern" testify to a long-term Bullish trend on of the New Zealand currency. Rise of TS becomes a pattern to trend renewal.
GBPCHF
Cross-country-rate of the British pound to the Swiss franc on Friday rebound from support on TS upside and rose, continued a long-term Bullish trend to which IKH-patterns testify all: a disposition of a rate above wide Up Cumo, and ChS above the price chart, "a gold cross" and "a three-line pattern". The rate of the British pound to US dollar was now consolidated at top of a Bullish trend, and the Swiss franc tries to renew of an up trend that point to probability of rise of cross- rate of these currencies.
On Friday the US dollar considerably strengthened to the major currencies under influence of positive economic statistics from the USA. The Swiss franc and the Japanese Yen try to renew of the up trends but the further confirmations are required, and Canadian dollars however declined and consolidated though all patterns speak about probability of continuation of an up trend. Euro not managed to begin of a Bullish trend and returned to flat, and the British pound, the Australian and New Zealand dollars are consolidated at tops of the Bullish trends. Cross-rate of the British pound to the Swiss franc continued a long-term Bullish 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.