‘Ichimoku Cloud‘ is an all in one indicator in Technical Analysis which shows support/resistance, trend direction and momentum in the same chart. Ichimoku setup has 5 different elements which indicates different things. Goichi Hosoda, a Japanese journalist, who invented Ichimoku spent more than a decade to make it real perfect. This indicator is now considered as one of the most reliable setup in any technical chart. It is also known as “Ichimoku Kinko Hyo“, which translates into “one look equilibrium chart”. Let’s understand its 5 basic elements and explore Ichimoku Trading system AFL code.
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Ichimoku Cloud Elements
Tenkan-sen (Conversion Line): (9-period high + 9-period low)/2))
Kijun-sen (Base Line): (26-period high + 26-period low)/2))
Senkou Span A (Leading Span A): (Conversion Line + Base Line)/2))
Senkou Span B (Leading Span B): (52-period high + 52-period low)/2))
Chikou Span (Lagging Span): Closing price plotted 26 days behind its actual
Ichimoku Trading System AFL Code
Download Ichimoku AFL code from here. It is actually a complete trading system in itself. It plots Ichimoku cloud as well as Buy/Sell signals in the chart. When the price is above cloud it indicates uptrend and the cloud color is green, while when the price is below cloud it indicates downtrend and cloud color is red. Few of the standard Ichimoku parameters are modified to avoid whipsaws.
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