Chikou Support and Resistance

The Chikou Support and Resistance indicator identifies and plots key price structures based on the movement and "cusps" formed by the Ichimoku Kinko Hyo Chikou Span. By projecting historical close prices into the past and identifying significant reversal points, this tool highlights horizontal support and resistance levels derived from structural shifts in sentiment.

Usage

The indicator can be used on any timeframe to find structural levels that may not be immediately obvious on a standard candlestick chart. Traders can use these levels to identify potential areas of price exhaustion or breakout zones.

The tool utilizes a Zig-Zag logic to filter minor price fluctuations and focus on significant "bounces." When a new pivot (cusp) is confirmed based on the Zig-Zag Deviation and Depth settings, the indicator projects a horizontal line across the chart. These lines serve as historical reference points where the Chikou Span—representing the closing price shifted back—has previously reversed.

Details

The script functions by processing the close price equivalent of the Chikou Span and applying a Zig-Zag algorithm to determine local highs and lows (cusps). These points are stored internally, and upon the calculation of the latest bar, the script renders horizontal lines representing these structural levels.

This implementation draws inspiration from the technical analysis techniques described by Corrado Rondelli. Unlike standard support and resistance indicators that look at current price action, this tool focuses on the specific geometry of the Chikou line to find "hidden" levels that align with the Ichimoku Kinko Hyo methodology.

Settings

• Zig-Zag Deviation (%): The minimum percentage change required to confirm a new pivot point.
• Zig-Zag Depth: The minimum number of bars required between pivots to determine a high or low.
• Extend To Last Bar: When enabled, the current active price leg is projected to the most recent bar.
• Display Reversal Price: Toggles the display of the price value at the reversal point.
• Display Cumulative Volume: Shows the total volume accumulated during the price leg between two pivots.
• Display Reversal Price Change: Shows the price difference from the previous pivot.
• Difference Price: Selects whether the price change is displayed as an "Absolute" value or a "Percent".

FAQ

How do I use the Chikou Support and Resistance levels?

These levels act as potential areas of interest for entries or exits. Horizontal lines crossing the entire chart represent significant historical structural points where price momentum shifted in the past.

Can I change the sensitivity of the levels?

Yes, by adjusting the Zig-Zag Deviation and Zig-Zag Depth in the settings menu, you can filter for major macro levels or more frequent micro-structures.

How can I access Chikou Support and Resistance?

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