Ichimoku Oscillator with ATR-Filtered Trend Entries and Exits
Summary
This indicator converts Ichimoku cloud structure into a layered oscillator and a directional trend state. Price above or below a displaced cloud establishes the main bias, while added components reflect the lagging span, conversion and base line relationship, and cloud direction. A trend reaches a full-strength state when these components align, generating a main long or short signal. Optional entries can be added when price returns to the cloud support or resistance zone and then moves back with the trend.
An ATR-based tolerance can reduce whipsaw resets when conversion and base lines cross. The indicator can show an EMA of the oscillator and mark potential partial profits when specified line or EMA crossovers occur while the trade is profitable; a change in the trend state closes the main position. It also supports configurable alerts and display settings. The document presents implementation logic but no backtest or performance evidence, so signal quality and parameter suitability are not established.
Key ideas
- The cloud position determines the oscillator’s primary bullish or bearish state.
- Lagging-span, conversion/base-line, and cloud relationships contribute to a four-step trend score.
- Main signals occur when the trend score reaches its strongest positive or negative state.
- An ATR tolerance can reduce trend resets caused by small conversion/base-line crosses.
- Optional cloud-bounce entries and profitable crossover exits add signals, but the document provides no performance evaluation.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.