Ichimoku Slope Filtered Signals

The Ichimoku Slope Filtered Signals indicator provides trading signals derived from the Ichimoku Cloud framework enhanced with a normalized slope filter to confirm trend strength.

Usage

The script generates signals based on the interaction between the Tenkan-sen and Kijun-sen lines. Traders can use these signals for entry or exit points while utilizing the integrated slope oscillator for trend confirmation.

• Bullish Signal: A green circle appears at the bottom of the pane when the Tenkan-sen crosses above the Kijun-sen.
• Bearish Signal: A red circle appears at the top of the pane when the Tenkan-sen crosses below the Kijun-sen.
• Slope Confirmation: The indicator plots a normalized slope of the Tenkan-sen in a separate pane. A positive value (green area) indicates upward momentum, while a negative value (red area) indicates downward momentum.
• Signal Filtering: By enabling the "Filter Ichimoku Signals with Slope" setting, signals will only trigger if the slope exceeds the user-defined threshold, helping to avoid trades in sideways markets.

Details

This tool calculates the Ichimoku components using a modified average method that incorporates ATR-based bands. The core logic focuses on the Tenkan-sen's rate of change over a specific number of bars, which is then normalized against a historical lookback period. This normalization process allows the slope to be represented on a consistent scale (typically between -3 and +3), making it easier to identify extreme momentum or trend Exhaustion.

Settings

Ichimoku Settings

• Tenkan / Kijun / Senkou Span B Length: The period used to calculate the respective Ichimoku lines.
• Multipliers: Adjusts the ATR-based sensitivity for the line calculations.
• Displacement: The number of bars to shift the Ichimoku components forward or backward.

Slope Settings

• Measure Slope of Last (x) bars: The window used to calculate the price change for the slope calculation.
• Lookback of Slope: The number of historical bars used to determine the normalization levels.
• Filter Ichimoku Signals with Slope: Toggle to require a minimum slope threshold before a crossover/crossunder signal is displayed.
• Upper/Lower Signal Slope Threshold: The specific normalized slope value required to validate a trade signal.

FAQ

How do I access Ichimoku Slope Filtered Signals?

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

What is the purpose of the Normalized Slope?

The normalized slope quantifies the speed of price movement. It helps traders distinguish between a weak crossover in a ranging market and a strong crossover supported by significant momentum.

Can I change the sensitivity of the signals?

Yes, you can adjust the Tenkan and Kijun lengths or the multipliers in the settings. Lowering these values will result in more frequent, sensitive signals, while increasing them will produce fewer, more lagged signals.