Tenkan Sen Shows Bullish Movement For Vanadium One Energy Corp (VONE.V)

The Tenkan Line or Tenkan Sen (Sen means line in Japanese) is known as the conversion line or turning line is similar to a 9SMA but actually is quite different. Remember a SMA (simple moving average) will smooth out all the data and make it equal but the Tenkan Line will take the highest high and lowest low over the last 9 periods. The explanation for this is Hosada felt price action and its extremes were more important than smoothing any data because price action represented where buyers/sellers entered and directed the market, thus being more important than averaging or smoothing the data out. As you can see by the chart below, the Tenkan Line is quite different than a 9SMA. Because the TL (Tenkan Line) uses price instead of an averaging or the closing prices, it mirrors price better and is more representative of it. You can see this when the TL flattens in small portions to move with price and its moments of ranging.

Akin to all moving averages, the angle of the Tenkan line is very important as the sharper the angle, the stronger the trend while the flatter the Tenkan, the flatter or lesser the momentum of the move is. However, it is important to not use the Tenkan line as a gauge of the trend but more so the momentum of the move. However, it can act as the first line of defense in a trend and a breaking of it in the opposite direction of the move can often be a sign of the defenses weakening.

Turning to addtiional indicators, Vanadium One Energy Corp (VONE.V) currently has a 14-day Commodity Channel Index (CCI) of -40.99. Dedicated investors may choose to use this technical indicator as a stock evaluation tool. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal.

Investors may be trying to define which trends will prevail in the second half of the year. As the markets continue to chug along, investors may be trying to maximize gains and become better positioned for success. Technical analysts may be studying different historical price and volume data in order to help uncover where the momentum is headed. Coming up with a solid strategy may take some time, but it might be well worth it in the long run. As we move deeper into the year, investors will be closely tracking the next few earnings periods. They may be trying to project which companies will post positive surprises.

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