KijunTrend: Using Kijun or Moving Averages to Flag Trend Entries

Summary

KijunTrend adapts a trend filter attributed to Larry Williams. The original approach identifies an uptrend when price is above an 18-period simple moving average and at least two candles have lows that stay above it; the reverse condition identifies a downtrend. The indicator replaces the simple moving average with the Ichimoku Kijun, using the standard 26-period setting, and also allows a simple or exponential moving average as the reference line.

The plotted line turns blue when the long condition is met and red when the short condition is met. The provided logic checks the prior three bars: for a long signal, the two more recent lows must be above the line while the earlier low was at or below it; the short condition mirrors this using highs. Users can configure the line period and type. The document describes a signal concept and implementation, but gives no performance testing or rules for exits, position sizing, or risk management.

Key ideas

• The indicator adapts a moving-average trend filter by allowing the Kijun, simple moving average, or exponential moving average as its reference line.
• A long signal requires two recent lows above the line after an earlier low touched or fell below it.
• A short signal requires two recent highs below the line after an earlier high touched or rose above it.
• The displayed line changes color to indicate the detected long or short condition.
• The document provides no backtest results or complete trade and risk-management rules.

Tags

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