The Kijun-Sen is a key component of the Ichimoku Kinko Hyo trading system, commonly used in technical analysis. It represents the average of the highest high and the lowest low over the last 26 periods, providing traders with a baseline for potential support and resistance levels. Traders often use the Kijun-Sen to identify trends and potential entry or exit points. When the price is above the Kijun-Sen, it may indicate an uptrend, while a price below suggests a downtrend. This indicator helps traders make informed decisions based on market momentum.