CURRENT CLOSING PRICE time-shifted backwards (into the past) 26 periods
The chikou span represents one of 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.
If the current close price (as depicted by the chikou span) is lower than the price of 26 periods ago, that would indicate
that there is a potential for more price action to come, since price tends to follow trends. Conversely, if the
current closing price is above the price of 26 periods ago, that would then indicate the possibility for more
price action to follow.