IKH Signals v2

The IKH Signals v2 indicator provides a comprehensive signal generation system based on the Ichimoku Kinko Hyo framework, designed to identify high-probability trend continuations and reversals. It incorporates advanced filtering techniques such as Kumo thickness analysis, slope detection, and multi-timeframe validation to minimize false signals during consolidation.

Usage

The Usage section focuses on interpreting the various signal types and visual aids provided by the tool:

• Sanyaku Kouten & Gyakuten: These represent the "three ritual" signals where price, Tenkan/Kijun cross, and Chikou Span align with the Kumo. These are often considered the strongest Ichimoku signals.
• Standard Buy/Sell Signals: Triggered when the price momentum aligns with the Kumo direction and thickness requirements. Signals are filtered to avoid triggering on Doji candles to ensure price action conviction.
• Multi-Timeframe (MTF) Validation: By enabling the "Major Trend Confirmation" setting, the indicator only allows signals that align with the trend of a higher timeframe (e.g., 1-hour trend for 15-minute entries).
• Trend Coloring: The indicator can color price bars between signals to provide a visual representation of the current bullish or bearish bias.
• Exit Signals: Users can toggle exit alerts based on specific Ichimoku criteria like Tenkan/Kijun crosses or "Flat" Kijun/SSA lines which often signify a loss of momentum.

Details

This script implements a refined version of the Ichimoku strategy by calculating the deviation and slope of the Senko Spans and Kijun-sen.

Key implementation details include:

• Kumo Thickness: Calculated as a percentage relative to historical volatility to ensure the cloud provides meaningful support or resistance.
• Slope Analysis: Uses the Chande Momentum Oscillator (CMO) on Senko Spans to determine the "angle" of the trend, requiring a minimum slope for "Strong" signal classifications.
• Dynamic Breakouts: Incorporates Donchian Channel-based logic to detect localized high/low breakouts, which are used to validate "Strong Buy/Sell" triggers.

Settings

Display & Main

• Display Ichimoku: Toggles the visibility of the standard Ichimoku Kinko Hyo components (Lines and Kumo).
• Use Major Trend Confirmation: Enables MTF filtering for signals.
• Major Trend Resolution: Sets the timeframe for the MTF filter.
• Color bar if trending between signals: Toggles bar coloring based on the active trend.

Signal Visibility

• Show Sanyaku Kouten/Gyakuten: Toggles the strongest Ichimoku confluence signals.
• Show Buy/Sell: Toggles standard trend-following signals.

Exit Settings

• Show Exit: Enables exit labels on the chart.
• Choice exit type: Selects the logic for exits, including Tenkan/Kijun Cross, Kijun Flat, SSA Flat, or a combination.
• Use Major Trend to trigger Exit: Determines if the exit logic should be calculated based on the MTF resolution or the local chart.

FAQ

How do I access IKH Signals v2?

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

What is the difference between a "Buy" and a "Strong Buy"?

A "Strong Buy" requires additional filters including a minimum Kumo thickness (>= 6) and specific rising slope angles for both Senko Span A and B, alongside a local high breakout.

Why did a signal not appear on a specific trend?

The script is designed to ignore Doji candles and periods where the Kumo is too thin or the slope is flat to avoid "whipsaw" signals in ranging markets.