Ichimoku Kinko Hyo Signals

The Ichimoku Kinko Hyo Signals indicator provides an automated signal system based on the classical Ichimoku Kinko Hyo components combined with momentum and trend-following filters. It identifies potential market reversals and trend-following opportunities by analyzing Tenkan-sen, Kijun-sen, Chikou Span, and Kumo Cloud relationships.

Usage

The script categorizes market conditions into four primary signal types:

• Strong Buy (Sanyaku Kouten): Triggered when a bullish "Threefold Greeting" occurs, indicating a potential major trend reversal or powerful bullish continuation.
• Buy: Triggered when trend-following conditions are met, such as price being above the Kumo cloud, Tenkan-sen above Kijun-sen, and specific line slopes being positive.
• Strong Sell (Sanyaku Gyakuten): Triggered when a bearish "Threefold Greeting" occurs, signaling a potential major bearish reversal.
• Sell: Triggered when the price is below the Kumo cloud, Tenkan-sen is below Kijun-sen, and negative momentum is confirmed.
• Exit: Displays potential take-profit or exit points based on price crossing back through the Kijun-sen or specific counter-crosses.

Details

The indicator calculates signals using a multi-step confirmation process:

1. Donchian Channels: Used to derive the core Ichimoku lines (Tenkan-sen 9, Kijun-sen 26, Senkou Span B 52).
2. Agility and Sensitivity: Custom logic determines if lines are "trending" by comparing their current values to previous values over a user-defined lookback period.
3. Sanyaku Logic: The script tracks the state of the Sanyaku Kouten/Gyakuten across multiple bars, requiring specific sequential conditions to be met before a "Strong" signal is issued.
4. Optional Filters: Users can toggle Stochastic (K=14, D=3) and Triple EMA filters to refine signals for lower timeframes and reduce noise.

Settings

Visibility & General

• Show Strong Buy / Strong Sell: Toggles the visibility of Sanyaku signals.
• Show Buy / Sell: Toggles standard trend-following signals.
• Show Exit: Enables potential exit markers.
• Improve Sanyaku with Trend Following: If enabled, Sanyaku signals must also meet standard trend-following criteria.

Sensitivity & Agility

• Short/Mid/Long term sensitivity: Sets the percentage threshold for a line to be considered "trending."
• Short/Mid/Long term agility: Defines the lookback period for determining the direction of the trend.

Filters

• Use stochastic In Signals: Adds a Stochastic confirmation (K > D for buys, K < D for sells) to the signal logic.
• Use EMA In Signals: Incorporates a triple EMA (Fast, Mid, Slow) trend filter to ensure alignment with broader price action.

FAQ

How do I use the "Exit" signals?

The exit signals are designed to suggest when a current trend might be losing momentum, typically when price closes on the opposite side of the Kijun-sen.

What is Sanyaku Kouten?

It is a "triple bull" signal in Ichimoku theory occurring when the price is above the cloud, Tenkan-sen is above Kijun-sen, and the Chikou Span is above the price of 26 periods ago.

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.