IKH anticipates the future price evolution, determining potential support / resistance levels. It is used especially for JPY pairs.

We’ll analyse the meaning of each line. (It is not necessary to memorize how they are determined, because the trading platform will do it automatically.)

The blue line is called Kijun Sen, the standard line or baseline. This is the arithmetic mean of Higher Highs and Lower Lows for the last 26 timeframes.

The red line is called Tenkan Sen or the return line. This is the arithmetic mean of the Higher Highs and Lower Lows for the last 9 timeframes.

The green line is called Chikou Span or lagging line. It shows the closing price of the current day for the next 26 timeframes.

The orange lines are called Senkou Span.
The first one the projection of the arithmetic mean between the baseline and the return line and over the next 26 timeframes.
The second one is the projection of the arithmetic mean between the Higher Highs and Lower Lows from the last 52 timeframes over the next 26 timeframes.

How do we use IKH

Orange lines - supports / resistances
If the price is above them, the top line will serve as the first support level while the lower line as the second support level.
If the price is below these lines, the lower one will serve as the first resistance level and the upper one as the second resistance.

Base line - an indicator of possible price developments
If the price is above the blue line, then it may increase further.
If the price is below the blue line then it may continue to fall.

Return line - trend indicator
If the red line moves up or down this means there is a trend.
If the red line is horizontal then the price ranges (there is no trend).

Lagging line - buy / sell signal
If the green line crosses the price from bottom to top, it is a Buy signal.
If the green line crosses the price from top to bottom, it is a Sell signal.