Ichimoku Kinko Hyo Cloud + QQE

The Ichimoku Kinko Hyo Cloud + QQE indicator combines the comprehensive trend-following capabilities of the Ichimoku Cloud with the momentum-based Quantitative Qualitative Estimation (QQE) to identify high-probability trade setups. This tool is designed to filter price action through multiple layers of confirmation, using Ichimoku for long-term trend direction and QQE for capturing swift momentum shifts.

Usage

The Usage section highlights how to interpret the dual-strategy approach:

• Long-Term Trend: Use the Ichimoku Cloud (Senkou Span A/B) and the Lagging Span (Chikou Span) to establish the primary trend direction. When the Lagging Span is above the cloud, the trend is bullish.
• Momentum Entry: Once a trend is established by the Ichimoku components, look for QQE signals ("QQE L" or "QQE S") to time entries during momentum expansion.
• Timeframe Recommendation: For optimal results, use the Ichimoku signals on a 15-minute timeframe for capturing sustained moves, while utilizing QQE signals on the same timeframe for identifying more immediate price reactions.
• Exit Strategy: The script provides explicit "Exit Long" or "Exit Short" shapes based on bearish/bullish Tenkan-Sen and Kijun-Sen crossovers within the prevailing trend.

Details

The script executes two distinct logic paths:

1. Ichimoku Logic: Calculates Tenkan-Sen (Conversion Line), Kijun-Sen (Base Line), and the Senkou Spans. It includes a "No Offset" mode which displays these lines without the traditional 26-bar forward displacement, helping traders identify signals that do not repaint and align directly with current price candles.
2. QQE Logic: Based on a smoothed RSI and a volatility-based trailing stop (Fast ATR Trailing Line). The cross between the smoothed RSI and this trailing line generates the QQE momentum signals.
3. RSI Filter: An additional RSI-based filter is integrated to ensure trades are not taken in extreme overbought or oversold conditions, based on user-defined levels.

Settings

Ichimoku Settings

• Standard Ichimoku Cloud: Toggles the traditional displaced cloud visualization.
• Ichimoku Cloud - no offset: Toggles the non-displaced version of the cloud for real-time signal alignment.
• Conversion Line Period: Sets the period for the Tenkan-Sen (default 9).
• Base Line Period: Sets the period for the Kijun-Sen (default 27).
• Lagging Span 2 Periods: Sets the period for Senkou Span B (default 52).
• Displacement: Adjusts the forward/backward shift for various cloud components.

RSI & QQE Settings

• RSI Filter Levels: Sets the overbought/oversold thresholds for trade filtering.
• QQE RSI Length: The period used for the internal QQE RSI calculation.
• QQE RSI Smoothing: The smoothing factor applied to the QQE RSI.
• Fast QQE Factor: The multiplier for the ATR-based trailing line in the QQE logic.

FAQ

How do I use this for trend confirmation? Wait for the "Up" or "Down" circles which indicate the Lagging Span has cleared the Ichimoku Cloud, then look for "Long" or "Short" triangles for entry confirmation.

What is the "No Offset" cloud? This setting removes the standard 26-period forward shift of the Senkou Spans, allowing you to see the cloud's boundaries directly under the current price action for easier visual backtesting.

How can I access the Ichimoku Kinko Hyo Cloud + QQE? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.