Daily Kijun with Bounce Alerts

The Daily Kijun with Bounce Alerts indicator provides a higher-timeframe perspective by plotting the daily Kijun line across all chart timeframes to identify key support/resistance levels and price rejection signals.

Usage

The Daily Kijun with Bounce Alerts tool is primarily used to identify "bounces" where the price tests the Kijun level but fails to break through, suggesting a continuation of the prior trend or a strong rejection. When a bounce occurs, the script plots a "K" label on the chart.

• Bullish Bounce: Occurs when the price dips below the Kijun but closes back above it, confirmed by the following candle remaining above the level.
• Bearish Bounce: Occurs when the price rallies above the Kijun but closes back below it, confirmed by the following candle remaining below the level.

Because the Kijun represents a 50% retracement (equilibrium) over a specific period, a flat Kijun line acts as a particularly strong magnetic level or dynamic Fibonacci 50% retracement.

Details

Unlike the standard Ichimoku Cloud which includes five different components, this script isolates the Kijun-sen (Base Line) calculated from a daily resolution. The Kijun is calculated by taking the average of the highest high and the lowest low over a user-defined period (defaulting to 50).

The script uses request.security to fetch daily data, ensuring that the level remains consistent whether you are viewing a 1-minute, 15-minute, or 1-hour chart. The bounce logic requires a two-candle sequence: an initial breach/touch of the level followed by a confirmation candle that closes on the original side of the Kijun.

Settings

• Source: Determines the price data used for the Kijun calculation (default is Close).
• Resolution: Sets the timeframe for the Kijun calculation (default is Daily).
• Length: The lookback period used to find the highest high and lowest low (default is 50).
• Offset: Allows the user to shift the Kijun calculation back in time.
• Label Bounces (K): Toggles the visibility of the "K" labels on the chart when a bounce is confirmed.

FAQ

What does the "K" label represent?

The "K" label identifies a "Kijun Bounce," which is a price action signal where the market tests the Daily Kijun level but fails to sustain a breakout, indicating a potential reversal or trend continuation.

Can I use this on lower timeframes?

Yes, the indicator is designed to show the daily Kijun level on intraday timeframes, providing a higher-timeframe anchor for day traders.

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.