Using one indicator as the core for another one to improve certain aspects while offering an alternative user interaction can be very interesting in technical analysis.
This indicator is a modification of the popular Ichimoku indicator using the equally popular Supertrend indicator as its core, thus no longer entirely relying on calculations done over a fixed window size but instead relying on the average true range and the trend detection method offered by the Supertrend.
Settings
Tenkan: Atr length (left) and factor (right) used for the Supertrend involved in the calculations of the Tenkan Ichimoku component
Kijun: Atr length (left) and factor (right) used for the Supertrend involved in the calculations of the Kijun Ichimoku component
Senkou Span B: Atr length (left) and factor (right) used for the Supertrend involved in the calculations of the second Senkou Span Ichimoku component
Displacement: Bar offset of the cloud (positive offset) and Chikou (negative offset)
Usage
The SuperIchi indicator can be interpreted similarly to a regular Ichimoku as it retains the components and aspects from this one. Users can make use of the Supertrend Factor to detect shorter or longer-term trends.
Unlike the regular components of the Ichimoku based on rolling maximums/minimums, using the Supertrend here allows smoother components and makes it less prone to whipsaw signals.
Note that the Chikou is disabled by default in the style settings
Details
The original Ichimoku indicator is constructed from the average between the rolling maximum high and minimum low values. The Supertrend indicator also relies on one upper/lower extremity but using the average of these extremities for the modification of the Ichimoku indicator might not provide easy to use results due to the nature of these extremities.
Instead, we compute the average between the Supertrend and trailing maximums/minimums with a value reset when a new trend is detected by the Supertrend. This allows obtaining a result that is closer to the original average used by Ichimoku.
One of the most powerful concepts of Ichimoku is that of the mid-price. Since the Kijun-sen and Senko Span B are using longer term mid prices of the market, you should know that when Kijun-sen and Senko Span B are FLAT, the market is now ranging. Why? Because if the line is flat it means that over the past 26 or 52 periods, the high and low prices haven't changed. If this continues for some time then it means the price is not renewing new highs or lows, therefore it's ranging.
If anyone looks at this and wonders why some of the crossovers work really well, while some are terrible, keep this fact in mind.
The best tip I can give anyone for trading Ichimoku is to trade the *angle* of the lines. When the price is above or below the cloud wait for Kijun sen to be angled up or down in the same direction. Why? This means that the price is trending higher or lower and it can allow you to set a tight stop for high RR trades.
chartmojo
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@ichimokucorner, Good points. I like to use those prior horiz lines often to place targets/entries/exits just in front of them. Same with flat developing poc's, vwaps etc. and in particular a flat 50% range, as you say its often consolidation ..most often w2 w4, ..wB urge/force consolidations as well.
Rocketman
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@ichimokucorner, That is an interesting hypothesis, but it probably does not work well in reality.
itrade258
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"Using one indicator as the core for another one to improve certain aspects while offering an alternative user interaction can be very interesting in technical analysis ."
that part.
Ahtapot1234
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can you add alarm
Trix_N
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Is the superIchi repaint indicator or non repaint indicator?
Pratik_4Clover
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That's interesting new idea, thanks!!
iLLHero
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@Pratik_4Clover, like most of their indicator s he to right from mostly dgt indicators, and lazy bear,I doubt it's a coincidence...check out Dual SuperTrend, Ichimoku and DMI Color Weighted by DGT ... Much better orginal one..
rkayasth
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@sdog1785, can you post the link to Dual SuperTrend by DGT? I was not able to find it?
If anyone looks at this and wonders why some of the crossovers work really well, while some are terrible, keep this fact in mind.
The best tip I can give anyone for trading Ichimoku is to trade the *angle* of the lines. When the price is above or below the cloud wait for Kijun sen to be angled up or down in the same direction. Why? This means that the price is trending higher or lower and it can allow you to set a tight stop for high RR trades.