OPEN-SOURCE SCRIPT
Cloud-Optimized Momentum
This strategy is based on the Ichimoku Cloud indicator, designed to identify potential buy and sell signals in a market (like HWM stock). Here's a breakdown of the components and logic behind it:
Ichimoku Cloud Components:
Tenkan-sen: The moving average of the highest high and lowest low. It is used as a short-term trend indicator.
Kijun-sen: The moving average of the highest high and lowest low. It is considered the medium-term trend line.
Senkou Span A: The average of Tenkan-sen and Kijun-sen, shifted forward. It forms the leading edge of the cloud (Kumo).
Senkou Span B: The moving average of the highest high and lowest low, shifted forward. It forms the trailing edge of the cloud.
Chikou Span: The closing price shifted backward. It is used to confirm the trend.
Ichimoku Cloud Components:
Tenkan-sen: The moving average of the highest high and lowest low. It is used as a short-term trend indicator.
Kijun-sen: The moving average of the highest high and lowest low. It is considered the medium-term trend line.
Senkou Span A: The average of Tenkan-sen and Kijun-sen, shifted forward. It forms the leading edge of the cloud (Kumo).
Senkou Span B: The moving average of the highest high and lowest low, shifted forward. It forms the trailing edge of the cloud.
Chikou Span: The closing price shifted backward. It is used to confirm the trend.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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