Chiku + SuperTrend

The Chiku + SuperTrend indicator provides a robust trend-following system that combines the breakout logic of the Ichimoku Chiku Span with the volatility-based tracking of the SuperTrend.

Usage

The Usage section describes how traders can identify trend shifts and potential entry points using the combined logic of momentum and volatility.

• Bullish Trend: A buy signal is generated when the price is both above the SuperTrend line and higher than the price from 25 bars ago (Chiku breakout).
• Bearish Trend: A sell signal is generated when the price is both below the SuperTrend line and lower than the price from 25 bars ago.

Traders often use the SuperTrend line (Trailing Stop Loss) as a dynamic level for risk management, while the Kijun Sen provides an additional baseline for price equilibrium.

Details

The script integrates two distinct technical analysis philosophies. First, it utilizes a SuperTrend calculation based on Average True Range (ATR) to establish a volatility-adjusted trend line. Second, it incorporates the "Chiku" (Lagging Span) logic from the Ichimoku Kinko Hyo system. By comparing the current price to the price 25 periods ago, the script filters out SuperTrend signals that lack sufficient momentum or historical breakout confirmation. The script also plots a "Target" line based on the opposite trend level to provide a visual objective for price movement.

Settings

• Multiplier: Adjusts the sensitivity of the SuperTrend calculation. A higher multiplier makes the indicator less sensitive to price fluctuations, while a lower one makes it more reactive.
• Period: Sets the lookback period for the ATR calculation used in the SuperTrend. Increasing this value smooths the trend line.

FAQ

How do I use the signals from this tool?

The signals are designed to confirm trend direction. A green line indicates a bullish environment where price has cleared both volatility and historical resistance, while a red line indicates a bearish environment.

What is the purpose of the Kijun Sen plot?

The Kijun Sen (Base Line) acts as a midpoint for price action over a 26-period lookback, serving as a secondary confirmation of trend health and potential mean reversion levels.

How can I access this script?

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