The Ichimoku Clouds strategy has been one of my favorite scripts to work with since I came across it a few months ago, so I thought I'd share one of the automated features I created for the strategy. For the purpose of this script, I'll only explain the Chikou Span aspect of it since there are plenty of other explanations about Ichimoku Clouds.
The Chikou Span is one of the most useful aspects of the Ichimoku Clouds strategy despite it not being used in most people's strategies. It is calculated by simply taking the current closing value and plotting it backwards 26 bars. The Chikou Span is used to identify large trend moves and trend reversals by what is referred to as 'open space'. This occurs when the Chikou Span is not intersecting any candlestick within 10 bars (if you were to draw a horizontal line from the tip of the Chikou Span, it would not touch any part of a candle within 10 bars).
The purpose of this script is to better identify the Chikou Span reaching 'open space' by coloring the Chikou Span's line: - Green when it is in upwards open space (bullish trend), and - Red when it is in downwards open space (bearish trend).
I've also included my personal color scheme for the Ichimoku Clouds strategy as well as inputs to turn on/off every aspect of the strategy.
** Disclaimer: THIS IS NOT TRADING ADVICE. The Chikou Span should not be used on its own to make any trades. When trading with the Ichimoku Cloud strategy, one should utilize all 5 lines of the strategy to make realistic trades. If you'd like to learn more, I'd recommend reading "Trading with Ichimoku Clouds - The Essential Guide to Ichimoku Kinko Hyo Technical Analysis" **
amazing work bro.looking forward full version. thank you
westryder009
⋅
Thank you so much for this Indicator. I must say that I'm really impressed with the detailed explanation that comes along with It.
I would most Grateful If you can add colour change alert condition to this script for the GREEN -Bull, White-( Neutral/Sideways) & Red (Bear).
OztheWoz
⋅
@westryder009, thank you for your compliment. I’m getting close to releasing a full “Advanced Ichimoku” script that will include all of this and much more. Since I’m getting close to finishing it, I’ll ask for you to wait a little while longer until it’s released.
KudiX
⋅
Nice one @OztheWoz, Kindly once us, once you've your "Advanced Ichimoku" script completed, I am very much interested in this development.
Just followed you. Kudos once again.
MaWeAl
⋅
Thank you so much for the indicator - it‘s a great help!