Definition – What does Ichimoku Chart mean?
An ichimoku chart is a price action graph that combines much of the information a trader needs in a single chart. The chart is made up of four lines:
- The kijun sen
- The tenkan sen
- The senkou span A
- The senkou span B
All these lines are created using averages and plotted ahead and behind of the current price action. Crossovers of these averages form a kumo (cloud) that represents the market trend and the probable future price movement.
ForexTerms explains Ichimoku Chart
Ichimoku charts are designed to provide a multi-dimensional view or support and resistance, as well as provide indicators and oscillators. Although they are difficult to learn at first, many traders have been converted because of the way the areas of the chart visually expand and contract along with the market movements.