Senkou Span B

The senkou span B is calculated in the following manner:

SENKOU SPAN B ("2nd leading line")

(HIGHEST HIGH + LOWEST LOW) /2 for the past 52 periods time-shifted forwards (into the future) 26 periods

The senkou span B is best-known for its part, along with the senkou span A line, in forming the kumo, or "Ichimoku cloud" that is the foundation of the Ichimoku Kinko Hyo charting system. On its own, the senkou span B line represents the longest-term view of equilibrium in the Ichimoku Kinko Hyo system. Rather than considering only the last 26 periods in its calculation like the senkou span A, the senkou span B measures the average of the highest high and lowest low for the past 52 periods. It then takes that measure and time-shifts it forward by 26 periods, just like the senkou span A. In Hosoda's original implementation, the senkou span B would thus represent price equilibrium for the prior two (2) month period, shifted ahead of current price by one (1) month. This convention allows Ichimoku practitioners to see this longer term measure of equilibrium ahead of current price action, allowing them to make informed trading decisions.