Purpose of Ichimoku
Ichimoku Kinko Hyo is a Japanese trend system made of five lines. The Tenkan-sen and Kijun-sen are midpoints of recent highs and lows; Senkou Span A and Senkou Span B form the "cloud", drawn ahead of price; the Chikou Span is the closing price drawn back in time. Together they show trend direction, momentum and support and resistance levels.
How It Works
When you select Ichimoku Kinko Hyo in the Trade Rule block, you can configure it with the following settings:
Tenkan-sen Period of Ichimoku
The number of candles for the Tenkan-sen (standard: 9).
Kijun-sen Period of Ichimoku
The number of candles for the Kijun-sen (standard: 26).
Senkou Span B Period of Ichimoku
The number of candles for Senkou Span B (standard: 52).
Mode of Ichimoku (Which line to use)
Tenkan-sen: The fast conversion line.
Kijun-sen: The slower base line.
Senkou Span A: The first cloud line.
Senkou Span B: The second cloud line.
Chikou Span: The closing price drawn 26 candles back. It has no value on the most recent 26 candles.
Time Frame of Ichimoku
Sets the chart time frame for the Ichimoku calculation.
Can be replaced with a variable or input for quick testing and optimization.
Candle ID of Ichimoku
Defines which candle the calculation starts from.
0: Current candle (still forming).
1: Most recently closed candle.
Higher IDs refer to older candles.
Adjust of Ichimoku (Modify the Result)
Apply an adjustment to the calculated value by adding, subtracting, multiplying, or dividing by a number.
Example
If you set:
Tenkan-sen: 9
Kijun-sen: 26
Senkou Span B: 52
Mode: Kijun-sen
Candle ID: 1
You get the Kijun-sen value of the most recently closed candle. A rule like "Close > Ichimoku (Kijun-sen)" checks whether price is above the base line.
Use Cases
Detect an uptrend when price is above the cloud (both Senkou Spans).
Use Tenkan-sen above Kijun-sen as a bullish signal.
Use the Kijun-sen or the cloud as dynamic support or resistance.
Tenkan-sen, Kijun-sen, Senkou Span A and Senkou Span B can also be used as a Custom level stop-loss or take-profit, as a pending-order price, and as the Modify SL/TP reference price. The Chikou Span cannot.
⚠ Tip: Ichimoku was designed with 9, 26 and 52. Keep these values unless you have a clear reason to change them.
⚠ Note: When you use Crosses Above or Crosses Below with this indicator, the cross is currently calculated on its first line, whatever Mode you select. To compare two specific lines, use > or < instead.