Tenkan-Sen
A component of the Ichimoku Kinko Hyo indicator that is primarily used to measure short-term momentum. This line is calculated by using the following formula:
This line is generally constructed by only considering the highs and lows for the last seven to nine time periods. The resulting line is interpreted in the same manner as a short-term moving average. Investopedia Says:
The Tenkan-sen is generally used in combination with the Kijun-sen to create predications of future momentum. A buy signal is created when the Tenkan-sen line moves above the Kijun-sen, while a sell signal is created when the Tenkan-sen line moves below the Kijun-sen line.
Many technical traders use the Tenkan-sen as a tool for predicting levels where the price of the asset will find short-term support. Related Terms:
Chikou Span
Ichimoku Kinko Hyo
Kijun-Sen
Momentum
Senkou Span A
Senkou Span B
Support
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