Detecting Ichimoku Kumo Twists with Span Crossovers

Summary

This document describes a simple indicator for marking Ichimoku cloud twists. It calculates Tenkan-sen and Kijun-sen from rolling high-low midpoints, then derives Senkou Span A and Senkou Span B using the Ichimoku lookback and displacement conventions. It compares the two spans with their prior values and emits a positive or negative marker when their ordering crosses; otherwise, the output stays neutral. The author suggests displaying the result as a histogram alongside an Ichimoku chart with several other lines hidden.

The indicator identifies cloud crossovers, which traders may use as a visual signal or charting aid. The document provides the calculation logic but no backtest, market examples, performance evidence, or rules for entries, exits, and risk management. A crossover alone does not establish that a trade is profitable, and the note does not discuss sensitivity to market, timeframe, or parameter choices. It should therefore be read as an indicator description rather than a validated trading strategy.

Key ideas

• The indicator derives Senkou Span A and Senkou Span B from Ichimoku midpoint calculations.
• It marks a twist when the relative ordering of the two spans reverses.
• Positive and negative outputs distinguish the direction of the crossover, while other bars remain neutral.
• The author recommends viewing the output as a histogram alongside an Ichimoku chart.
• The document supplies no testing or evidence that twists predict profitable trades.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.