Ichimoku Oscillator with Normalization, Cloud Signals, and Divergence

Summary

This indicator adapts Ichimoku components into an oscillator for chart analysis. Its configurable inputs include conversion and base lines, leading span lengths, a lagging span, and a moving average. The script centers and normalizes signal and cloud values, with options for whole-series or rolling-window scaling, clamping, smoothing, and displaying range bands.

The oscillator is compared with the normalized Ichimoku cloud to color signals and identify moves through cloud boundaries. The indicator also includes settings for regular and hidden bullish or bearish divergence, using configurable left and right pivot windows and lookback limits. Users can choose which lines, cloud views, labels, and signals to display. The document provides source code and parameters but no trading rules for entries and exits, performance evidence, or guidance for validating signals. As a chart indicator, its settings and visual signals require interpretation and testing before use in a trading system.

Key ideas

• The indicator combines Ichimoku conversion, base, and leading-span components into a normalized oscillator.
• Normalization can use the full history or a rolling window, with optional smoothing and clamping.
• Oscillator position relative to the cloud guides signal coloring and cloud-boundary interpretation.
• Configurable pivot windows support regular and hidden bullish or bearish divergence displays.
• The document describes an indicator and its options, but supplies no strategy performance evidence.

Tags

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