Tenkan-sen (Conversion Line)
Tenkan-sen, also known as the Conversion Line, is a technical indicator used in the field of financial analysis. It is used to identify the trend of a security or market, and to identify potential support and resistance levels. The Tenkan-sen is calculated by taking the average of the highest high and the lowest low over the past nine periods. This average is then plotted on a chart, and is used to identify the trend of the security or market.
History of Tenkan-sen
The Tenkan-sen was developed by Goichi Hosoda, a Japanese journalist and trader. He developed the indicator in the late 19th century, and it has since become a popular tool among technical analysts. The Tenkan-sen is often used in conjunction with the Kijun-sen, another technical indicator developed by Hosoda. Together, these two indicators are known as the Ichimoku Kinko Hyo, or “one glance equilibrium chart”.
Comparison Table
| Period | Highest High | Lowest Low | Average |
|---|---|---|---|
| 1 | 100 | 90 | 95 |
| 2 | 110 | 80 | 95 |
| 3 | 120 | 70 | 95 |
| 4 | 130 | 60 | 95 |
| 5 | 140 | 50 | 95 |
| 6 | 150 | 40 | 95 |
| 7 | 160 | 30 | 95 |
| 8 | 170 | 20 | 95 |
| 9 | 180 | 10 | 95 |
Summary
The Tenkan-sen is a technical indicator used to identify the trend of a security or market, and to identify potential support and resistance levels. It is calculated by taking the average of the highest high and the lowest low over the past nine periods. This average is then plotted on a chart, and is used to identify the trend of the security or market. For more information about the Tenkan-sen, you can visit websites such as Investopedia, TradingView, and StockCharts.
See Also
- Kijun-sen
- Ichimoku Kinko Hyo
- Moving Average Convergence Divergence (MACD)
- Relative Strength Index (RSI)
- Bollinger Bands
- Stochastic Oscillator
- Average Directional Index (ADX)
- On Balance Volume (OBV)
- Parabolic SAR
- Fibonacci Retracement
