The basics of an Ichimoku:
- Conversion Line (Tenkan-Sen): It represents a midpoint of the highest and lowest prices over a specific period, usually 9 periods, reflecting short-term price movements.
- Base Line (Kijun-Sen): It acts similarly to the Conversion Line but over a longer period, typically 26 periods, representing medium-term price movements.
- Leading Span A & B (Kumo): Span A is the average of the Conversion Line and Base Line, and Span B is the midpoint of the highest and lowest prices over a usually longer period, typically 52 periods. Their interaction denotes trend direction, and the cloud color changes depending on whether Span A is above or below Span B, indicating bullish or bearish market conditions, respectively.
- Lagging Span (Chikou Span): It is the current closing price plotted 26 periods behind, assisting in confirming the trend direction and potential momentum.
Advantage of an Oscillator:
Utilizing the oscillator format allows traders to interpret market dynamics more efficiently by visualizing the momentum and trend strength in a bounded range, enabling quick assessments of overbought or oversold conditions. Creating this oscillator provides multiple advantageous; particularly in sideway markets, helping to identify potential reversal points and offering insights on market entries and exits. When building this oscillator we've put a focus on unique interpretations such as overbought and sold areas and divergences; otherwise not found in traditional Ichimoku techniques. It is important to note these divergences are naturally not 100% real time.
When the oscillator turns green; the market is in an uptrend, red for downtrend and yellow for a transitioning market. The center line and the inner most cloud represent a balanced market state.
Key Features & Input Parameters:
- Signal Source: Allows the selection of the price data source for signal generation, such as closing prices, and it’s the foundational parameter upon which the oscillator functions.
- Normalization Settings: Users can select the normalization mode (“All”, “Window”, or “Disabled”), influencing how the oscillator scales its values. When enabled, it will scale from 100 to -100, allowing the user to understand better the relative positioning of price data.
- Smoothing: This indicator offers advanced smoothing features, with options for additional smoothing, allowing traders to adjust the signal's sensitivity to price movements.
- Kumo & Chikou Visibility: Traders can customize the visibility settings of Kumo and Chikou, tailoring the display of each component to their preference, enabling a cleaner and more intuitive view of market conditions.
- Color Coding: Each component and condition, like bullish or bearish states, can be color-coded, providing visual cues to enhance the interpretability of market trends and states.
- Color on Conversion: The oscillator provides an option to color the signal based on the crossover of the conversion and base lines.
- Divergence: The oscillator can detect and highlight regular and hidden bullish and bearish divergences between the signal and price, aiding traders in identifying potential trend reversals or continuations.
The list of inbuilt alerts are provided below:
- Inside Cloud: The signal line is inside the cloud.
- Up Out of Cloud: The signal line crossed above the cloud.
- Down Out of Cloud: The signal line crossed below the cloud.
- Future Kumo Cross Bullish: The future Kumo lines have crossed in a bullish manner.
- Future Kumo Cross Bearish: The future Kumo lines have crossed in a bearish manner.
- Current Kumo Cross Bullish: The current Kumo lines have crossed in a bullish manner.
- Current Kumo Cross Bearish: The current Kumo lines have crossed in a bearish manner.
- Conversion Base Bullish: The conversion line crossed above the base line.
- Conversion Base Bearish: The conversion line crossed below the base line.
- Signal Bullish on Conversion Base: The signal line crossed above the maximum of conversion and base lines.
- Signal Bearish on Conversion Base: The signal line crossed below the minimum of conversion and base lines.
- Chikou Bullish: The Chikou line crossed above zero.
- Chikou Bearish: The Chikou line crossed below zero.
- Signal Over Max: The signal line crossed above the max level.
- Signal Over High: The signal line crossed above the high level.
- Signal Under Min: The signal line crossed below the min level.
- Signal Under Low: The signal line crossed below the low level.
- Chikou Over Max: The Chikou line crossed above the max level.
- Chikou Over High: The Chikou line crossed above the high level.
- Chikou Under Min: The Chikou line crossed below the min level.
- Chikou Under Low: The Chikou line crossed below the low level.
- Signal Crossover MA: The signal line crossed over the moving average.
- Signal Crossunder MA: The signal line crossed under the moving average.
- Regular Bullish Divergence: Regular bullish divergence detected.
- Hidden Bullish Divergence: Hidden bullish divergence detected.
- Regular Bearish Divergence: Regular bearish divergence detected.
- Hidden Bearish Divergence: Hidden bearish divergence detected.
- Bounce off of Kumo Up: Bullish Bounce off of Kumo.
- Bounce off of Kumo Down: Bearish Bounce off of Kumo.
By providing a cohesive visualization of the Ichimoku elements and market momentum within a bounded range, this oscillator is a unique tool and insight into markets.
Dans le véritable esprit de TradingView, l'auteur de ce script l'a publié en open-source, afin que les traders puissent le comprendre et le vérifier. Bravo à l'auteur! Vous pouvez l'utiliser gratuitement, mais la réutilisation de ce code dans une publication est régie par le règlement. Vous pouvez le mettre en favori pour l'utiliser sur un graphique.
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