Scalping Ichimoku

The Scalping Ichimoku indicator simplifies the Ichimoku Cloud system into a streamlined signaling tool designed to identify trend-following entries and potential exit points across various timeframes.

Usage

The tool monitors two specific conditions derived from the Ichimoku Cloud components to generate trading signals:

• Buy Signal: Triggered when the price crosses above the cloud and the Conversion Line (Tenkan-sen) simultaneously crosses above the Base Line (Kijun-sen). An upward-pointing triangle identifies these entries.
• Sell Signal: Triggered when the price crosses below the cloud and the Conversion Line crosses below the Base Line. A downward-pointing triangle identifies these entries.
• Exit Points: If enabled, the indicator marks potential exits with an "X" shape. A long exit occurs when the Conversion Line crosses below the Base Line, while a short exit occurs when it crosses above. If an entry and exit trigger on the same candle, the exit mark changes color to highlight the strength of the entry.

The script ensures signal clarity by enforcing a "one signal at a time" rule, preventing consecutive duplicate signals in the same direction.

Details

The script calculates the standard Ichimoku components:

• Conversion Line (Tenkan-sen): Midpoint of the 9-period high/low.
• Base Line (Kijun-sen): Midpoint of the 26-period high/low.
• Leading Span A & B (Senkou Span): Forms the "Cloud," projected forward by the displacement value.

The "Scalping" logic requires price confirmation relative to the cloud boundaries alongside the traditional Tenkan-Kijun cross. This dual-filter approach aims to filter out noise often found in sideways markets.

Settings

Main Settings

• Conversion Line Length: Sets the period for the Tenkan-sen calculation (default is 9).
• Base Line Length: Sets the period for the Kijun-sen calculation (default is 26).
• Leading Span B Length: Sets the period for the Senkou Span B calculation (default is 52).
• Displacement: Determines how many periods the cloud is shifted forward.
• Change candle colors...: If enabled, colors the price bars based on whether Leading Span A is above or below Leading Span B.
• Draw indicator on the chart: Toggles the visibility of the actual Ichimoku lines and cloud.
• Show Exit Spots: Toggles the visibility of the "X" exit markers.

FAQ

How do I use the Scalping Ichimoku?

You can use the triangle shapes for entries when both price and momentum filters align, and the "X" marks to manage potential trade exits.

Is this only for scalping?

While designed for scalping due to its reactive nature, the logic can be applied to swing trading or higher timeframes to capture broader trend shifts.

How can I access Scalping Ichimoku?

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