Senkou B

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With the Senkou B things get a bit complicated in the sense that the calculation of this line is quite interesting. The Senkou B line is calculated by taking the highest high and the lowest low from the past fifty two periods, divide the result by two and plot it twenty six periods ahead.

Senkou B forms basically the other edge of the kumo and because of the fact that it is taking into account a bigger period when compared with Senkou A, it should be more valuable to the trader. Changes in this line way of moving should be treated with caution by any trader as implies powerful signals for the overall trending market conditions.

In order for the cloud to be bullish, or green, the Senkou B should be below the Senkou A line, meaning it should have a lower value.

In order for the cloud to be bearish, or red, the Senkou B should be above the Senkou A line, meaning it should have a higher value.

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