Ichimoku Trend Oscillator

The Ichimoku Trend Oscillator indicator transforms core Ichimoku components into a normalized trend force model designed to visualize bullish and bearish pressure within a single lower-panel oscillator. It simplifies the complex relationship between price and the Ichimoku Cloud into a readable force score and momentum histogram for more efficient trend analysis.

Usage

The Usage section describes how the script can be used to identify trend direction and momentum quality. The oscillator acts as a directional filter where the central zero line serves as the primary divider between bullish and bearish regimes.

• Directional Filtering: Values above the zero line indicate bullish pressure, while values below suggest bearish pressure.
• Force and Momentum: The distance of the Force Line from the zero line represents trend strength. A rising histogram indicates accelerating momentum, while a fading histogram suggests deceleration.
• Expansion States: The indicator classifies market conditions into states like "Bullish Expansion" or "Bearish Pressure," helping traders distinguish between simple directional bias and high-conviction trend alignment.
• Signals:
  • LONG/SHORT: Triggered on zero-line crossovers, signaling a regime shift.
  • SHIFT: Circular markers that appear when momentum changes sharply without a full zero-line cross, acting as early warnings for potential trend changes.
• Tenkan Overlay: An optional main-chart plot of the Tenkan line changes color based on trend conditions to provide structural context directly on price action.

Details

The script compresses several Ichimoku readings into a normalized engine using ATR-based scaling. It evaluates the Tenkan/Kijun directional spread, price location relative to the Kumo (Cloud), and the directional structure of the Cloud itself.

By translating these traditional Ichimoku rules—such as price being above the cloud for bullishness and the Tenkan/Kijun cross for momentum—into a numerical score, the tool creates a "Force Line." This line is then smoothed to prevent noise and compared against a signal line to generate the histogram. This approach allows traders to evaluate the total state of the Ichimoku system without cluttering the main price chart.

Settings

Core Ichimoku

• Tenkan Length: Period for the Tenkan-sen (default 9).
• Kijun Length: Period for the Kijun-sen (default 26).
• Senkou B Length: Period for the Senkou Span B (default 52).
• Source: The price input used for calculations (default Close).

Style

• Show Tenkan Force Overlay: Toggles the Tenkan line on the main chart.
• Show Force Line: Displays the main oscillator line.
• Show Histogram: Displays the momentum difference between the force line and signal line.
• Show Soft Gradient Fill: Enables the dynamic background coloring based on trend strength.
• Show LONG / SHORT / SHIFT Signals: Toggles visibility of all entry and momentum shift markers.
• Show Dashboard: Enables the on-chart information panel.

Force Logic

• Force Smoothing: Adjusts the EMA length used to smooth the force line.
• Force Scale: Multiplier used to normalize the output range.
• Neutral Zone: Defines the range around zero where the market is considered neutral.
• Fill Softness Curve: Adjusts the gradient transition of the background fill.

Signals

• Use Zero Cross Signals: Enables markers for regime changes at the zero line.
• Use Momentum Shift Signals: Enables markers for sharp velocity changes in the force line.
• Shift Threshold: Determines the sensitivity required to trigger a SHIFT signal.

FAQ

How do I interpret the "Expansion" states on the dashboard? Expansion states occur when multiple Ichimoku elements align (e.g., price is above the cloud, Tenkan is above Kijun, and the force score is high), indicating a strong, trending market environment.

What does a "SHIFT" signal represent? A SHIFT signal indicates a rapid change in momentum. It is often an early warning that the current trend is accelerating or potentially nearing a reversal before the main Force Line crosses the zero boundary.

Where can I access this indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.