Trade Bitcoin Trading

Ichimoku Kinko Hyo

Ichimoku Kinko Hyo is a Japanese charting technique that was developed before by a Japanese newspaper writer, with the pen name of Ichimoku Sanjin.

• Ichimoku means "a glance" or "one look"
• Kinko means "equilibrium" or "balance"
• Hyo is the Japanese word for "chart"

Thus, Ichimoku Kinko Hyo means, "a glance at an equilibrium chart". Ichimoku attempts to identify the likely direction of btcusd price and help the bitcoin trader to determine the most suitable time to enter or exit the btcusd trading market.

Calculation

This btcusd indicator consists of five lines drawn using the midpoints of previous highs and lows. The five lines are calculated as follows:

1) Tenkan-Sen; Conversion Line; Red Line (Highest High + Lowest Low) / 2, for the last 9 btcusd price periods

2) Kijun-Sen; Base Line; Blue Line (Highest High + Lowest Low) / 2, for the last 26 btcusd price periods

3) Chikou Span; Lagging Span; Green Line Today's closing btcusd price drawn 26 btcusd price periods behind

4) Senkou Span A; Leading Span A = (Tenkan-Sen + Kijun-Sen) / 2, drawn 26 btcusd price periods ahead

5) Senkou Span B; Leading Span B; (Highest High + Lowest Low) / 2, for the past 52 btcusd price periods, drawn 26 btcusd price periods ahead

Kumo; Cloud; area between Senkou Span A and B

Bitcoin Trading Analysis and Generating Bitcoin Trading Signals

Bullish signal- Tenkan-Sen crosses the Kijun-Sen from below.

Bearish signal- Tenkan-Sen crosses the Kijun-Sen from above.

However, there are different levels of strength for the buy and sell cryptocurrency signals generated.

Technical Analysis

Bullish crossover signal occurs above the Kumo (clouds),

Very strong buy crypto signal.

Bearish crossover signal occurs below the Kumo (clouds),

Very strong sell crypto signal.

If a bullish/ bearish crossover signal takes place within the Kumo (clouds) it is considered a medium strength buy or sell crypto signal.

A bullish crossover that occurs below the clouds is considered a weak buy cryptocurrency signal while a bearish crossover that occurs above the clouds is considered a weak sell crypto signal.

Support and Resistance Levels

Support and resistance levels can be predicted by the presence of Kumo (clouds). The Kumo can also be used to identify the current bitcoin trend of the btcusd trading market.

• If btcusd price is above the Kumo, the prevailing market bitcoin trend is said to be upwards.
• If btcusd price is below the Kumo, the prevailing market bitcoin trend is said to be downwards.

The Chikou Span or Lagging Span is also used to determine the strength of the buy or sell crypto signal.

• If the Chikou Span is below the closing btcusd price of the last 26 periods ago and a sell short signal is given, then the strength of the bitcoin trend is downwards, otherwise the signal is considered to be a weak sell crypto signal.
• If there is a bullish signal and the Chikou Span is above the btcusd price of the last 26 periods ago, then the strength of the bitcoin trend is to the upside, otherwise it is considered to be a weak buy crypto signal.