ChsaDos

ICHIMOKU INDICATOR EXPLAINED - AN INTRODUCTION - CHIKOU SPAN

MTGOX:BTCUSD   Bitcoin / Dollar
1665 2 4
The chikou span is calculated in the following manner:

CURRENT CLOSING PRICE time-shifted backwards (into the past) 26 periods

The chikou span represents one of Ichimoku most unique features; that of time-shifting certain lines backwards or forwards in order to gain a clearer perspective of price action. In the chikou span's case, the current closing price is time-shifted backwards by 26 periods. While the rationale behind this may at first appear confusing, it becomes very clear once we consider that it allows us to quickly see how today's price action compares to the price action of 26 periods ago, which can help determine trend direction.

In addition to providing us with another piece of the "trend puzzle", the chikou span also provides clear levels of support and resistance , given that it represents prior closing prices. Ichimoku practitioners can thus draw horizontal lines across the points created by the chikou span to see these key levels and utilize them in their analysis and trading decisions
Great stuff, never really bothered to look at the Chikou span that way in regards to S/R. Thanks,
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The published chart had the many other Ichimoku Indicators hidden: here it is in its full glory -
snapshot
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