ICHIMOKU Kinko Hyo by KIVANC fr3762

The ICHIMOKU Kinko Hyo by KIVANC fr3762 indicator provides a comprehensive trend-following framework that visualizes support, resistance, and momentum through its classic five-line component system.

Usage

The Usage section describes how the script can be used to identify market trends and potential reversal points. Traders typically look for the interaction between price and the "Kumo" (cloud) or crossovers between the specific component lines.

• Trend Identification: When the price is above the cloud, the trend is considered bullish. Conversely, price below the cloud indicates a bearish trend.
• Tenkan Sen / Kijun Sen Crossover: A bullish signal is often generated when the Tenkan Sen (fast line) crosses above the Kijun Sen (slow line). A bearish signal occurs when it crosses below.
• Cloud (Kumo) Analysis: The area between Senkou Span A and Senkou Span B acts as a dynamic support and resistance zone. A thicker cloud suggests stronger support/resistance, while a thin cloud suggests volatility or a potential breakout.
• Chikou Span: Used as a momentum filter; if the lagging line is above the price from 26 periods ago, it confirms bullish momentum.

Details

The script is a refined implementation of the system developed by Goichi Hosoda. Unlike standard built-in versions, this script provides independent control over all five parameters, allowing for more precise tuning across different asset classes.

The indicator consists of five main components:

1. Tenkan Sen (Turning Line): Averaging the highest high and lowest low for the past 9 periods.
2. Kijun Sen (Base Line): Averaging the highest high and lowest low for the past 26 periods.
3. Chikou Span (Lagging Line): The current closing price plotted 26 periods back in time.
4. Senkou Span A (Leading Span A): The average of the Tenkan Sen and Kijun Sen plotted 26 periods ahead.
5. Senkou Span B (Leading Span B): The average of the highest high and lowest low for the past 52 periods, plotted 26 periods ahead.

While traditional markets often use the 9, 26, 52 settings, many traders apply a 1-3-3-6-3 ratio for 24/7 markets like Cryptocurrency (e.g., 10, 30, 60 or 20, 60, 120).

Settings

• Tenkansen Length: The lookback period for the Tenkan Sen (Conversion Line), default is 9.
• Kijunsen Length: The lookback period for the Kijun Sen (Base Line), default is 26.
• Chikouspan Length/Horizontal Shift: Determines the displacement for the lagging span and the leading cloud components, default is 26.
• SenkouspanB Length: The lookback period for the Senkou Span B (Leading Span B), default is 52.
• SenkouspanA Length: The parameter used to calculate the first leading span, default is 26.

FAQ

How do I interpret the cloud color? The cloud is colored green (bullish) when Senkou Span A is above Senkou Span B, and red (bearish) when Senkou Span B is above Senkou Span A.

Can I use this for Cryptocurrency markets? Yes, though it is recommended to adjust the lengths to account for 24/7 trading, such as using 10, 30, 60 settings while maintaining the traditional ratios.

How can I access the ICHIMOKU Kinko Hyo by KIVANC fr3762? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.