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05. Chikou: today viewed in the past

LESSON 05 OF 13 · COMPARE LIKE WITH LIKE

Chikou: today viewed in the past

The same close is shown at two chart positionsOriginal educational schematic. The same close is shown at two chart positions. This illustration is not market data.25 bar intervals (inclusive 26th bar)Past positionTodayChikou = today’s closeEarlier price

Original schematic · For learning, not a market forecast.

Chikou is today’s closing price placed earlier on the chart. It is neither a moving average nor an estimate of a future close. Compare it with price at its displaced position.

Read both direction and space

Chikou above earlier price supports an upward comparison; below earlier price supports a downward comparison. Notice whether it is clear of the historical price cluster or tangled within it. A wider gap describes a larger price difference, not certainty about the next move.

Why the moving average connection works

With this series’ 25 interval displacement, compare C(t) with C(t−25). A 25 bar simple moving average changes by [C(t) − C(t−25)] ÷ 25. Its slope therefore shares the sign of that close to close difference. Comparing Chikou with candle highs and lows is a stricter, different test.

On a historical chart, a Chikou point was only available when its corresponding later close occurred. In replay or backtesting, judge signals at the decision time, not at the earlier plotting position.

Check your understanding

Today’s close is 115; the close 25 intervals earlier is 105. What is the change in the 25 bar SMA?

Reveal the explanation

(115 − 105) ÷ 25 = +0.4. This compares closes; a candle’s high may still obstruct Chikou.

Further reading: Kojiro’s Japanese Ichimoku lesson 05. This English lesson and its diagram were independently written and created by Ichimoku Master.

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Kei with the original Japanese Ichimoku books

AUTHOR

Kei

Kei is a Japanese forex trader and mentor who has traded since 2013. He teaches Ichimoku in English from the original Japanese texts, with a focus on chart analysis, trading psychology and risk management.