Why We Use Kinjusen in All Our Trading Analysis - We Use Mostly & KINJUSEN
Why KijunSen Is Superior to the Moving Average"
Let’s begin with the formula, since Kijun Sen measures the past Our Given periods:
Kijun Sen = (Highest High + Lowest Low) / 2 for the past Our Given periods
By taking the median of price extremes, Kijun Sen reflects the equilibrium, or of prices, taking into account. A flat horizontal Kijun Sen means that price extremes have not changed, and the market is consolidating.
Prices tend to gravitate towards this equilibrium, as indicated by the blue circles in the above chart. Once a strong trend is identified, retracements toward the Kijun Sen serve as more conservative entry points.