Ichimoku Slope Filtered Signals [UAlgo]

🔶Description:

The "Ichimoku Slope Filtered Signals" indicator is designed to provide trading signals based on the Ichimoku Cloud indicator while incorporating a slope filter. The Ichimoku Cloud is a comprehensive indicator that defines support and resistance, identifies trend direction, and provides trading signals. This script enhances the traditional Ichimoku Cloud signals by incorporating a slope filter, which helps to confirm the strength and direction of the trend.

🔶Key Features:

Ichimoku Cloud Parameters: Users can customize parameters such as Tenkan, Kijun, and Senkou Span lengths, along with multipliers, to adjust the sensitivity of the Ichimoku Cloud.

Slope Filter Settings: Users can specify the number of bars to measure the slope and the lookback period for trend measurement. Additionally, there are options to filter Ichimoku signals based on slope thresholds.

Normalized Slope: The indicator calculates the normalized slope of the selected data series (in this case, Tenkan-sen) and plots it alongside the Ichimoku Cloud.

Signal Generation: Trading signals are generated based on crossovers and crossunders of the Tenkan-sen and Kijun-sen lines of the Ichimoku Cloud. These signals can be further filtered based on the normalized slope of the selected data series.

🔶 Usage:

Customization: Traders can customize the parameters of the Ichimoku Cloud and slope filter according to their trading strategy and risk tolerance.

Interpretation of Signals:

Crossover: A buy signal is generated when the Tenkan-sen line crosses above the Kijun-sen line. This signal can be further filtered based on the normalized slope.

Crossunder: A sell signal is generated when the Tenkan-sen line crosses below the Kijun-sen line. Similar to the buy signal, this can also be filtered based on the normalized slope.

Trend Confirmation: The normalized slope provides additional confirmation of the strength and direction of the trend. A positive slope indicates an upward trend, while a negative slope indicates a downward trend.

Example:


Disclaimer:

Not Financial Advice: This script is provided for educational purposes only and should not be considered financial advice. Traders should conduct their own research and/or consult with a qualified financial advisor before making any investment decisions based on this script.

Risk of Loss: Trading in financial markets involves risk of loss, and past performance is not indicative of future results. Users of this script should be aware of the risks involved in trading and should only trade with capital they can afford to lose.

No Guarantees: There is no guarantee of success or profitability when using this script. Market conditions can change rapidly, and trading results may vary.

Use at Own Risk: The author of this script (UAlgo) does not assume any responsibility for losses incurred as a result of using this script. Traders use this script at their own risk and discretion.

Terms of Use: This script is subject to the terms of the Mozilla Public License 2.0. Users are encouraged to review the license terms before using or distributing the script.