Blockchain and Cryptocurrency Intermediate - How To Use the Tenkan Sen Line and Kijun Sen Line in the Ichimoku Kinko Hyo Indicator

How to use the Tenkan Sen line?

The Tenkan Sen is one of the most important components of the Ichimoku Kinko Hyo indicator and is very useful during the technical analysis process. On my chart, the Tenkan Sen line is the blue line and is considered the conversion line. It is the fast line in the indicator and it is derived by averaging the highest high and the lowest low for the past nine periods. What this means is that its primary use is to measure price volatility or price changes of any cryptocurrency asset over the past 9 periods.

In the cryptocurrency world, since the Tenkan Sen is an indicator of the market trend, it is mainly used to measure the short term trend in the cryptocurrency market over a particular period and also used to determine minor support and resistance areas in the chart. To determine the market direction, careful attention is paid on the Tenkan Sen line. If the Tenkan Sen line which is the blue line on the chart is moving up or down, it signals that the cryptocurrency market is either moving in an uptrend direction or downtrend direction. On the chart, the price is above the Tenkan Sen line shows that the market is in an uptrend direction in the short term. Also, the price below the Tenkan Sen line shows that the market is in a downtrend direction.

How to use the Kijun Sen line?

The Kijun Sen is also one of the most important components of the Ichimoku Kinko Hyo indicator and is very useful during the technical analysis process. On my chart, the Kijun Sen line is the red line and is considered the base line. The Kijun-sen line is great for confirming a change in trend in the market and also can be very useful to determine where to set trailing stoploss point. Calculating the Kijun Sen line is basically done by taking the midpoint of the highest high and the lowest low over the previous 26 periods.

In the cryptocurrency world, since the Kijun Sen line is an indicator of future market movement. If the Kijun Sen red line is above the Tenkan Sen blue line, it signals that the market is in a downtrend direction. The Kijun-sen line is great for confirming a change in trend in the market and also can be very useful to determine where to set trailing stoploss point.

How to use them simultaneously?

The Tenkan Sen and Kijun Sen can be used simultaneously. Both the Tenkan Sen and Kijun Sen can be used simultaneously for confirming a change in trend in the market. On the chart, Kijun Sen red line is above the Tenkan Sen blue line which signals that the market is moving in a downtrend direction. Also, the Kijun Sen red line is below the Tenkan Sen blue line which signals that the market is moving in an uptrend direction.