OPEN-SOURCE SCRIPT
Updated Ichimoku Score Indicator [tanayroy]
The Ichimoku Cloud is a comprehensive indicator that provides a clear view of market states through five key components. By analyzing the interaction between these components and the asset's price, traders can gain insights into trend direction, momentum, and potential reversals.
Introducing the Ichimoku Score System
I have developed a scoring system that quantifies these interactions, offering an objective method to evaluate market conditions. The score is calculated based on the relative positioning of Ichimoku components, with adjustable weightings via user input.
Scoring Criteria
Each component contributes to the overall score as follows:
Price vs. Cloud (Kumo) & Other Components
Tenkan vs. Kijun
Chikou Span Interactions
Senkou Span Analysis
Price vs. Key Levels
Interpreting the Score
The aggregate score functions as an oscillator, fluctuating between a range of ±16.0.
To enhance readability and smooth fluctuations, a 9-period SMA is applied to the score.
Application in Algorithmic Trading
This scoring system helps integrate Ichimoku Cloud principles into algorithmic trading strategies by providing a structured and quantifiable method for assessing market conditions.
Would love to hear your feedback! 🚀 Let me know how this system works for you.
Introducing the Ichimoku Score System
I have developed a scoring system that quantifies these interactions, offering an objective method to evaluate market conditions. The score is calculated based on the relative positioning of Ichimoku components, with adjustable weightings via user input.
Scoring Criteria
Each component contributes to the overall score as follows:
Price vs. Cloud (Kumo) & Other Components
- Price vs. Kumo → 2 Points
- Price vs. Kumo Shadow → 0.5 Points
Tenkan vs. Kijun
- Tenkan vs. Kijun → 2 Points
- Tenkan vs. Kumo → 0.5 Points
- Kijun vs. Kumo → 0.5 Points
- Tenkan Slope → 0.5 Points
- Kijun Slope → 0.5 Points
Chikou Span Interactions
- Price vs. Chikou → 2 Points
- Chikou vs. Kumo → 0.5 Points
- Chikou Consolidation → 0.5 Points
Senkou Span Analysis
- Senkou A vs. Senkou B → 2 Points
- Senkou Slope → 0.5 Points
Price vs. Key Levels
- Price vs. Tenkan → 2 Points
- Price vs. Kijun → 2 Points
Interpreting the Score
The aggregate score functions as an oscillator, fluctuating between a range of ±16.0.
- A higher score indicates strong bullish momentum.
- A lower score suggests bearish market conditions.
To enhance readability and smooth fluctuations, a 9-period SMA is applied to the score.
Application in Algorithmic Trading
This scoring system helps integrate Ichimoku Cloud principles into algorithmic trading strategies by providing a structured and quantifiable method for assessing market conditions.
Would love to hear your feedback! 🚀 Let me know how this system works for you.
Release Notes
Major Bug fixes.Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.