<h2>Tenkan-Sen (Conversion Line)</h2>
<p>The Tenkan-Sen, often referred to as the conversion line, is a key component of the Ichimoku Cloud indicator, a versatile technical analysis tool used in trading. It helps traders identify potential support and resistance levels, as well as trend directions.</p>

<h2>How It Works</h2>
<p>The Tenkan-Sen is calculated by averaging the highest high and the lowest low of the past nine periods (usually candlesticks). It is plotted nine periods behind the current price. Here's the formula:</p>
<p><strong>Tenkan-Sen</strong> = (Highest High + Lowest Low) / 2</p>
<p>For example, if we're using a daily chart, the Tenkan-Sen for the current day would be the average of the highest high and lowest low from the past nine days.</p>

<h2>Why It Matters for Traders</h2>
<p>The Tenkan-Sen serves multiple purposes in technical analysis:</p>
<ul>
<li><strong>Support and Resistance</strong>: It can act as a dynamic support or resistance level. Price often finds difficulty moving above or below the Tenkan-Sen.</li>
<li><strong>Trend Identification</strong>: In an uptrend, the Tenkan-Sen slopes upwards, and in a downtrend, it slopes downwards. The direction of the Tenkan-Sen can help confirm the overall trend.</li>
<li><strong>Crossover Signals</strong>: When the Tenkan-Sen crosses above the Kijun-Sen (base line), it can signal a potential buy opportunity. Conversely, a cross below the Kijun-Sen can indicate a sell signal.</li>
</ul>

<h2>Example</h2>
<p>Consider the EUR/USD pair on the MetaTrader 5 platform. If the Tenkan-Sen is at 1.2050 and the price crosses above it, this could indicate a potential buy signal, especially if the cross occurs after a period of bearish price action.</p>

<h2>Key Takeaways</h2>
<ul>
<li>The Tenkan-Sen is a key component of the Ichimoku Cloud indicator, calculated as the average of the highest high and lowest low over the past nine periods.</li>
<li>It can act as a dynamic support or resistance level, helping traders identify potential entry and exit points.</li>
<li>The direction of the Tenkan-Sen can help confirm the overall trend of the asset.</li>
<li>Crossover signals with the Kijun-Sen can provide traders with potential buy or sell opportunities.</li>
</ul>