Trading Kijun-Sen and EMA Crossovers

Summary

This indicator combines the Ichimoku Kijun-sen with an exponential moving average to produce directional crossover signals. The Kijun-sen is calculated as the midpoint of the highest high and lowest low over its lookback period; the example uses 26 periods. The EMA uses 55 periods and can use a selected price source.

A signal appears when the EMA crosses the Kijun-sen: one direction is marked green and the other red. The accompanying script enters long on one crossing and short on the other, though the written description does not specify this trading mapping. The document includes a backtest image but gives no numerical performance results or analysis. It does not explain exits, position sizing, transaction costs, or how to handle repeated signals. Crossover systems can also produce false signals in sideways markets, so the indicator alone does not establish profitability.

Key ideas

• The Kijun-sen is the midpoint of the high-low range over its lookback period.
• The example compares a 26-period Kijun-sen with a 55-period EMA.
• Crossings between the lines generate colored directional signals.
• The script maps crossings to long and short entries but provides no detailed risk or exit rules.

Tags

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