FREE DOWNLOAD Forex Kijun-Sen Line Indicator and Trading System – The Kijun-Sen is a major indicator line and component of the Ichimoku Kinko Hyo indicator, also known as the Ichimoku cloud. It is generally used as a metric for medium-term momentum.
The formula used to calculate the Kijun-Sen is almost identical to that of the formula used to calculate the Tenkan-Sen line. It differs in that the quantity of time periods used in the calculation is increased so long-term momentum can more effectively be gauged.
The Kijun-Sen is almost always used, specifically, in combination with the Tenkan-Sen to generate predictions of likely future price movements. When the Tenkan-Sen line moves above the Kijun-Sen line, a buy signal is created. A sell signal is created, conversely, when the Tenkan-Sen line moves below the Kijun-Sen line.
The Kijun-Sen line, along with each individual element of the Ichimoku cloud method, should never be considered in isolation but considered in context with the entire chart.