ICHIMOKU CLOUD - All Signals

The ICHIMOKU CLOUD - All Signals indicator is a comprehensive backtesting tool designed to evaluate various entry signals provided by the Ichimoku Kinko Hyo system. It allows users to toggle between different crossover and cloud-based strategies while implementing ATR-based risk management.

Usage

This tool can be used to identify and test several classic Ichimoku trading signals. Users can select a specific signal from the dropdown menu to see how it performs across historical data. Examples of available signals include:

• Tenkan/Kijun Crossover: Standard momentum signal when the Conversion Line crosses the Base Line.
• Price/Cloud Crossover: Momentum signal when the price breaks through the Kumo (Cloud).
• Signal + Kumo Filter: Combined signals where entries only occur if the price is also above/below the Cloud, ensuring trend alignment.

The indicator uses ATR (Average True Range) to calculate dynamic Take Profit (TP) and Stop Loss (SL) levels. Users should select the "JPY Pair" option when trading Yen-based instruments to ensure correct pip calculation for the exit logic.

Details

The script calculates the standard components of the Ichimoku Cloud:

• Tenkan-Sen (Conversion Line): Midpoint of the 9-period high/low.
• Kijun-Sen (Base Line): Midpoint of the 26-period high/low.
• Senkou Span A & B: These define the Kumo (Cloud) and are projected forward by the displacement setting.
• Chikou Span (Lagging Span): Current price projected backward.

The strategy execution logic calculates exit distances based on a multiplier of the 14-period ATR, allowing for volatility-adjusted position management.

Settings

• SIGNAL - Choose your signal: Selection menu for the specific Ichimoku signal to be tested.
• ATR - Check if JPY Pair: Adjusts decimal scaling for JPY-related currency pairs.
• Conversion Line Periods: The lookback period for the Tenkan-Sen (default is 9).
• Base Line Periods: The lookback period for the Kijun-Sen (default is 26).
• Lagging Span 2 Periods: The lookback period for Senkou Span B (default is 52).
• Displacement: The number of periods the cloud is projected forward.
• ATR - Stop Loss Multiplier: Multiplier applied to the ATR to determine the stop loss distance.
• ATR - Take Profit Multiplier: Multiplier applied to the ATR to determine the take profit distance.
• Time - How many years of testing?: Defines the backtesting window starting from the current date.

FAQ

How do I access ICHIMOKU CLOUD - All Signals?

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

Which signal is the most accurate?

Accuracy depends on the timeframe and asset class; however, signals that include the "+Kumo" filter are generally used to ensure trades are taken in the direction of the long-term trend.

Why do I need to check the JPY Pair box?

Japanese Yen pairs are quoted with different decimal places compared to other major pairs. Checking this box ensures the ATR-based Stop Loss and Take Profit are calculated with the correct pip values.