Ichimoku with MACD/ CMF/ TSI

The Ichimoku with MACD/ CMF/ TSI indicator provides a comprehensive trend-following strategy by combining the Ichimoku Cloud with momentum and volume-based oscillators to filter market noise and identify high-probability entries.

Usage

The strategy identifies bullish or bearish market regimes based on a confluence of four primary indicators. A trade signal is generated when all conditions align, suggesting strong trend confirmation across price action, momentum, and volume.

• Long Entry: Occurs when the Tenkan-Sen is above the Kijun-Sen, price is above the Senkou-Span (Cloud), and the MACD Histogram, Chaikin Money Flow (CMF), and True Strength Index (TSI) are all above their respective zero levels.
• Short Entry: Occurs when the Tenkan-Sen is below the Kijun-Sen, price is below the Senkou-Span (Cloud), and the MACD Histogram, CMF, and TSI are all below their respective zero levels.
• Exit Logic: Positions are closed when an opposing signal is detected (e.g., a long position is closed when a bearish signal triggers).

Users can adapt the tool to different timeframes and financial markets by adjusting the period lengths for each component to suit specific volatility levels.

Details

This script integrates several technical analysis concepts into a single logic:

• Ichimoku Cloud: Used for identifying trend direction and support/resistance zones.
• MACD (Moving Average Convergence Divergence): Used to measure momentum through its histogram relative to the zero line.
• Chaikin Money Flow (CMF): Measures the amount of Money Flow Volume over a specific period to confirm trend strength through accumulation/distribution.
• True Strength Index (TSI): A double-smoothed momentum oscillator used to filter out market noise and identify trend direction.

Settings

Ichimoku

• Tenkan-Sen Bars: The period used for the conversion line calculation.
• Kijun-Sen Bars: The period used for the base line calculation.
• Senkou-Span B Bars: The period used for the leading span B calculation.
• Chikou-Span Offset: The displacement value for the lagging span.
• Senkou-Span Offset: The displacement value for the cloud spans.

Strategy

• Long Entry: Toggle to enable or disable long trade signals.
• Short Entry: Toggle to enable or disable short trade signals.

MACD

• Fast Length: The period for the fast moving average.
• Slow Length: The period for the slow moving average.
• Source: The price data used for MACD calculations (e.g., HL2).
• Signal Smoothing: The period for the signal line.
• Simple MA (Oscillator): Uses SMA instead of EMA for the oscillator if enabled.
• Simple MA (Signal Line): Uses SMA instead of EMA for the signal line if enabled.

CMF

• CMF Length: The lookback period for calculating Money Flow.

TSI

• Long Length: The first smoothing period for the TSI.
• Short Length: The second smoothing period for the TSI.

FAQ

How do I use the Ichimoku with MACD/ CMF/ TSI?

This tool is used as a trend-following system where trades are taken only when price action (Ichimoku), momentum (MACD/TSI), and volume (CMF) align in the same direction.

Can I use this for intraday trading?

Yes, the indicator is adaptable to any timeframe. For shorter timeframes, you may need to adjust the lengths of the oscillators to reduce lag.

How 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.