Ichimoku Score Indicator [tanayroy]

3 days ago

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

• 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.

3 days ago

Release Notes

Major Bug fixes.