Ichimoku and Space Factor

The Ichimoku indicator elegantly demonstrates the interplay between time and price, suitable for all financial markets and across various timeframes. Its full name, Ichimoku Kinko Hyo, encapsulates its essence: 'Ichimoku' translates to 'one glance,' 'Kinko' denotes 'balance' or 'equilibrium,' and 'Hyo' stands for 'chart.' This name implies that the indicator provides a quick view of market conditions and chart balance (equilibrium) with just a single glance at the chart.

A key insight from its name suggests that traders can, at a single glance, spot opportunities for high-probability trades and distinguish them from lower-probability ones. Hosoda viewed the market as a mirror of collective human behavior, with a direct link between market movements and human interactions. He likened human behavior to a cyclical pattern, where individuals continuously drift from or move towards equilibrium in their lives. Each of the five elements of the Ichimoku indicator—Tenkan-sen, Kijun-sen, Senkou Span A, Senkou Span B, and the Chikou Span—represents this concept of balance or equilibrium, designed to provide a holistic view of the market’s potential directions.

There is a notable alignment between the Space Factor value related to the Kijun Sen's numerical periods and the line itself. The Kijun Sen, like all Ichimoku lines, represents key equilibrium points on a chart, crucial for market analysis. The space factor allows us to visibly track changes in these lines—such as movements, flattening, and directional shifts—without necessarily displaying the Ichimoku indicator on the chart. 

This underscores that the space factor is deeply embedded within the market's nature, mirroring the balance and imbalances within the market and chart. It aligns closely with the highs, lows, and trends in the market, similar to the Ichimoku lines. By analyzing the Ichimoku indicator together with the space factor, we enhance our understanding of the indicator and the complex interplay of time, price and space factor in market charts.