Chikou Span (Lagging Span)
Chikou Span, also known as the Lagging Span, is a technical analysis tool used in the Ichimoku Kinko Hyo trading system. It is a line that is plotted 26 periods behind the current price on a chart. The Chikou Span is used to identify potential support and resistance levels, as well as to confirm trends and momentum. It is also used to identify potential entry and exit points for trades.
History of the Chikou Span
The Chikou Span was developed by Goichi Hosoda, a Japanese journalist, in the late 1960s. He developed the Ichimoku Kinko Hyo trading system, which includes the Chikou Span, as a way to identify potential support and resistance levels. The system was designed to be used in conjunction with other technical analysis tools, such as candlestick patterns, to help traders identify potential entry and exit points.
How to Use the Chikou Span
The Chikou Span is used to identify potential support and resistance levels, as well as to confirm trends and momentum. When the Chikou Span is above the price, it is considered a sign of potential support. Conversely, when the Chikou Span is below the price, it is considered a sign of potential resistance. The Chikou Span can also be used to confirm trends and momentum. When the Chikou Span is above the price and rising, it is considered a sign of an uptrend. Conversely, when the Chikou Span is below the price and falling, it is considered a sign of a downtrend.
Table of Comparisons
| Support/Resistance | Trend/Momentum |
|---|---|
| Chikou Span Above Price | Chikou Span Rising |
| Chikou Span Below Price | Chikou Span Falling |
Summary
The Chikou Span is a technical analysis tool used in the Ichimoku Kinko Hyo trading system. It is a line that is plotted 26 periods behind the current price on a chart. The Chikou Span is used to identify potential support and resistance levels, as well as to confirm trends and momentum. It is also used to identify potential entry and exit points for trades. For more information about the Chikou Span, you can visit Investopedia, TradingView, and other financial websites.
See Also
- Ichimoku Kinko Hyo
- Kijun Sen
- Tenkan Sen
- Senkou Span A
- Senkou Span B
- Candlestick Patterns
- Support and Resistance
- Trends
- Momentum
- Technical Analysis
