the hAnDbook of teChnICAl AnAlysIsover the last twenty‐six periods. This characteristic is shared by the Tenkan‐sen,
Senkou Span B, and—to a lesser extent—the Senkou Span A (since Span A is a
simple moving average of two rolling mid‐range prices).
The Senkou Span A is calculated by taking the average of the Tenkan‐sen and
Kijun‐sen, and plotting its 26 periods into the future. See Figure 16.4.
Senkou Span B is calculated by taking the mid‐range price of the last 52 peri-
ods and plotting it 26 periods into the future. As mentioned earlier, the additional
simple average smoothing action on Senkou Span A gives it a smoother appear-
ance than that of Senkou Span B. See Figure 16.5.
Chikou Span is just the current or closing price plotted 26 periods back in
time. It is in fact the equivalent of a conventional line chart that has been displaced
FIgure 16.3 26‐Day SMA versus Kijun‐sen on the Daily Bund Chart.
Source: MetaTrader 4FIgure 16.4 Senkou Span A on the Daily Bund Chart.
Source: MetaTrader 4