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<ul class="itemize mark-bullet">
<li><a class="uref" href="http://www.linnsoft.com/tour/techind/donch.htm">http://www.linnsoft.com/tour/techind/donch.htm</a> &ndash; sample graph of Intel
(symbol &lsquo;<samp class="samp">INTC</samp>&rsquo;) from July-September 2001 (year not marked, but is 2001).
</li></ul>


<hr>
</div>
</div>
<div class="section-level-extent" id="Ichimoku-Kinko-Hyo">
<div class="nav-panel">
<p>
Next: <a href="#Keltner-Channel" accesskey="n" rel="next">Keltner Channel</a>, Previous: <a href="#Donchian-Channel" accesskey="p" rel="prev">Donchian Channel</a>, Up: <a href="#Channels-and-Boxes" accesskey="u" rel="up">Channels and Boxes</a> &nbsp;...
</div>
<h3 class="section" id="Ichimoku-Kinko-Hyo-1"><span>9.4 Ichimoku Kinko Hyo<a class="copiable-link" href="#Ichimoku-Kinko-Hyo-1"> &para;</a></span></h3>
<a class="index-entry-id" id="index-Ichimoku-kinko-hyo"></a>

<a class="index-entry-id" id="index-Ichimoku-Sanjin"></a>
<a class="index-entry-id" id="index-Sanjin_002c-Ichimoku"></a>
<a class="index-entry-id" id="index-Hosoda_002c-Goichi"></a>
<p>Ichimoku kinko hyo by journalist Goichi Hosoda (writing under the pseudonym
&ldquo;Ichimoku Sanjin&rdquo; the 1930s) is a set of indicator lines designed to show
the overall state of the market.  The name in Japanese means roughly &ldquo;chart
equilibrium at a glance&rdquo;.
</p>
<dl class="table">
<dt>Tenkan (orange) and Kijun (red)</dt>
<dd><p>The tenkan line shown in orange is the midpoint of the past 9-day trading
range, and the kijun line shown in red is a similar midpoint but of a slower
26 day period.  A crossing of the tenkan up through the kijun is taken as a
bullish signal, or conversely a downwards crossing is bearish.  This is
similar to fast/slow moving average crossing systems, but using range
midpoints.
</p>
</dd>
<dt>Senkou cloud (green)</dt>
<dd><p>A senkou or &ldquo;cloud&rdquo; region is shown between green lines.  One line is the
average (the mean) of the tenkan and kijun, the other is the midpoint of the
52 day trading range.  But these lines are drawn 26-days ahead, and thus
extend out past the end of the latest data.  The idea is that the present
values of those are predicted to have a future influence.
</p>
<p>The cloud adds to the bullishness or bearishness of the tenkan/kijun
crossovers.  A bullish cross while above the cloud is a strong buy signal,
whereas within the cloud it&rsquo;s only a normal buy, or below the cloud a weak
buy.  Conversely a bearish cross is a strong sell if below the cloud, normal
within, or weak if above.  The cloud region beyond current data is also
interpreted as prospective future support/resistance.
</p>
</dd>
<dt>Chikou (blue)</dt>
<dd><p>The chikou line drawn in blue is closing prices shifted back 26 days.  It&rsquo;s
interpreted relative to those past prices, with chikou above being bullish or
below being bearish.  This is similar to the kind of comparison momentum makes
(see <a class="pxref" href="#Momentum-and-Rate-of-Change">Momentum</a>).
</p></dd>
</dl>

<p>The time periods of 9 days and 26 days are parameters in Chart (see <a class="pxref" href="#View-Style">View Style</a>).  When Hosoda designed the system Japanese markets traded 6 days a
week, so 9 days was <em class="math">1 1/2</em> trading weeks and 26 days was a month.
The same calendar times in today&rsquo;s 5 day weeks can be had with 7 and 22 days.
</p>
<a class="index-entry-id" id="index-Range-Midpoint"></a>
<a class="anchor" id="Range-Midpoint"></a><ul class="mini-toc">
<li><a href="#Range-Midpoint-1" accesskey="1">Range Midpoint</a></li>
</ul>
<div class="subsection-level-extent" id="Range-Midpoint-1">
<h4 class="subsection"><span>9.4.1 Range Midpoint<a class="copiable-link" href="#Range-Midpoint-1"> &para;</a></span></h4>

<p>An N-day range midpoint like the tenkan, kijun and cloud lines is also
available separately as &ldquo;Range Midpoint&rdquo; if you want to experiment.  It&rsquo;s
under &ldquo;Low Priority&rdquo; in the averages list.
</p>

<hr>
</div>
</div>
<div class="section-level-extent" id="Keltner-Channel">
<div class="nav-panel">
<p>
Next: <a href="#Kirshenbaum-Bands" accesskey="n" rel="next">Kirshenbaum Bands</a>, Previous: <a href="#Ichimoku-Kinko-Hyo" accesskey="p" rel="prev">Ichimoku Kinko Hyo</a>, Up: <a href="#Channels-and-Boxes" accesskey="u" rel="up">Channels and Boxes</a...
</div>
<h3 class="section" id="Keltner-Channel-1"><span>9.5 Keltner Channel<a class="copiable-link" href="#Keltner-Channel-1"> &para;</a></span></h3>
<a class="index-entry-id" id="index-Keltner-channel"></a>
<a class="index-entry-id" id="index-Channel_002c-Keltner"></a>

<a class="index-entry-id" id="index-Keltner_002c-Chester-W_002e"></a>
<p>The Keltner channel is an N-day simple moving average (see <a class="pxref" href="#Simple-Moving-Average">Simple Moving Average</a>) of &ldquo;typical price&rdquo; (which is (high+low+close)/3), and bands drawn
above and below that at a distance which is the simple moving average of daily
ranges (high to low) in the period.
</p>
<a class="index-entry-id" id="index-Ten_002dday-moving-average-trading-rule"></a>
<p>This indicator was described by Chester W. Keltner in his 1960 book <i class="i">How
To Make Money in Commodities</i>, and those who learnt of it from him apparently
gave it the name Keltner Channel.  Keltner himself called it the &ldquo;Ten-Day
Moving Average Trading Rule&rdquo; and never claimed any originality for the idea
&ndash; it may have come from grain traders in the 1930s, or even earlier.
</p>
<p>The idea is that closes outside the channel suggest strong bullish (or strong
bearish) sentiment and can be bought (or sold).  The 10-day period is a
parameter in Chart.
</p>
<p>The channel bands need daily high/low data, so when that&rsquo;s not available (a
few indices for instance) they can&rsquo;t be drawn.  The centre line is still shown
(it ends up as just a simple moving average of the closes).
</p>

<hr>
</div>
<div class="section-level-extent" id="Kirshenbaum-Bands">
<div class="nav-panel">
<p>
Next: <a href="#Parabolic-SAR" accesskey="n" rel="next">Parabolic SAR</a>, Previous: <a href="#Keltner-Channel" accesskey="p" rel="prev">Keltner Channel</a>, Up: <a href="#Channels-and-Boxes" accesskey="u" rel="up">Channels and Boxes</a> &nbsp; [<a h...
</div>
<h3 class="section" id="Kirshenbaum-Bands-1"><span>9.6 Kirshenbaum Bands<a class="copiable-link" href="#Kirshenbaum-Bands-1"> &para;</a></span></h3>
<a class="index-entry-id" id="index-Kirshenbaum-bands"></a>
<a class="index-entry-id" id="index-Average-2"></a>
<a class="index-entry-id" id="index-Moving-average-1"></a>
<a class="index-entry-id" id="index-Variance-1"></a>
<a class="index-entry-id" id="index-Deviation-1"></a>
<a class="index-entry-id" id="index-Standard-error"></a>