SuperIchi

In the world of technical analysis, combining the best elements of various indicators can lead to intriguing results. The SuperIchi Indicator is a fascinating modification of the classic Ichimoku indicator, infusing it with the power of the renowned Supertrend indicator. Instead of solely relying on computations over a fixed window size, this unique indicator leverages the Average True Range (ATR) and the trend detection prowess of the Supertrend.

Customizable Settings

• Tenkan: Customize the ATR length and factor to influence the Supertrend calculations in the Tenkan Ichimoku component.
• Kijun: Adjust the ATR length and factor for the Supertrend calculations involved with the Kijun Ichimoku component.
• Senkou Span B: Set the ATR length and factor for the Supertrend calculations in the second Senkou Span Ichimoku component.
• Displacement: Configure the bar offset for the cloud (positive offset) and Chikou (negative offset).

How to Trade with the SuperIchi Indicator

The SuperIchi Indicator is designed to mimic the traditional Ichimoku method while incorporating the benefits of the Supertrend. Traders can effectively utilize the Supertrend Factor within this new framework to detect trends of varying durations—whether short-term or long-term.

A significant advantage of using the Supertrend in this context is its ability to smooth the Ichimoku components, providing a less volatile trading experience that minimizes the occurrence of false signals, also known as whipsaw signals.

Note that the Chikou is disabled by default in the style settings

Understanding the Technical Details

The traditional Ichimoku indicator forms its components based on the average of rolling maximum high and minimum low values. The Supertrend also interacts with upper and lower extremities, but in this innovative combination, simplicity in user experience is prioritized.

The SuperIchi Indicator computes the average using both the Supertrend and trailing maximums/minimums. This average is reset whenever the Supertrend detects a fresh trend, thereby allowing the formation of components similar to the original Ichimoku averages while integrating more dynamic, real-time trend assessments.

FAQ

1. How can I access the SuperIchi Indicator?

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

2. What are the main components of the SuperIchi Indicator?

The main components include Tenkan, Kijun, and Senkou Span B, each modified using the Supertrend's ATR length and factor.

3. How does the SuperIchi Indicator minimize whipsaw signals?

By incorporating the Supertrend's smoothness into the Ichimoku framework, the indicator reduces the erratic signals typical in volatile markets.