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Knowledge Base

Ichimoku Cloud

Overview


The Ichimoku Cloud indicator was developed before World War II by a Tokyo newspaper writer. It is designed to display support and resistance levels, trend direction, and entry/exit points.

The general idea behind this tool is that if price action is above the cloud, the overall trend is bullish, and if below the cloud, the overall trend is bearish.

There are also moving averages (the Tenkan and Kijun lines) which act like a MACD crossover signal with the Tenkan crossing from underneath the Kijun as a bullish signal, while crossing overhead giving a bearish signal.

There are 5 parts which make up the Ichimoku Cloud:
  • Tenkan Line: (highest high + lowest low)/2 calculated over last 9 periods.
  • Kijun Line: (highest high + lowest low)/2 calculated over last 26 periods.
  • Chikou Span: closing prices plotted 26 time periods back.
  • Senkou Span A: (Tenkan line + Kijun Line)/2 plotted 26 time periods ahead.
  • Senkou Span B: (highest high + lowest low)/2 calculated over past 52 time periods, sent 26 periods ahead.
When Span A is greater than Span B the cloud is green (bullish) and red when B > A.

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Actions & Properties


Actions


Add Technical Alert: When selected a Technical Alert will be created for the selected security.

Add to Toolbar: Click this action to add the selected Ichimoku Cloud to your custom toolbar.

Apply Settings to All: When multiple Ichimoku Cloud tools have been applied to a chart, page or workbook, this action can be used to apply the settings of the one selected to other instances of the tool. This is a great time saver if an adjustment is made to the tool - such as hiding or adding levels- as this allows all the other Ichimoku Cloud tools in the chart, page or entire workbook to be updated instantly.

Copy Data to Clipboard: Will copy the tool's values to the clipboard which can then be inserted into a spreadsheet, for example, allowing for further analysis.

Copy Tool: Allows the selected Ichimoku Cloud to be copied, which can then be pasted onto a different chart window.

Move to Back: If the lines of the tool are displaying in front of other tools or indicators clicking this action will move the lines view to the background.

Move to Front: If the lines of the tool are displaying behind other tools or indicators on the chart, clicking this action will bring the lines to the forefront.

Restore Default Settings: Click this action if you have adjusted the default settings of the Ichimoku Cloud, and wish to return to the standard properties originally installed with Optuma.

Save Settings as Default: If you have adjusted any of the Ichimoku Cloud properties (colour for example) you can save the adjustments as your new default setting. Each time you apply a new Ichimoku Cloud to a chart, the tool will display using the new settings.

Delete: Delete the Ichimoku Cloud from the chart.

Properties


Tool Name: Allows you to adjust the name of the tool, as it's displayed in the Structures Panel.

Tenkan Periods: The number of bars that are used in the calculation of the Tenkan line.

Kijun Periods: The number of bars that are used in the calculation of the Kijun line.

Span B Periods: The number of bars that are used in the calculation of the Senkou Span B line.

Kumo Offset:  Allows you to manually adjust the offset of the Kumo plot (set to 26 bars forward by default).  This property was added in Optuma v1.3.

Chikou Offset:  Allows you to manually adjust the offset of the Chikou plot (set to 26 bars backwards by default).  This property was added in Optuma v1.3.

Tenkan Plot Style: This field expands to display the following options:
  • Plot Style - Adjusts the display style of the Tenkan Line of the Ichimoku Cloud tool. There are 6 options available: Line, Dot, Histogram, Step, Shaded, Shaded Step.
  • Line Style - When Line is selected as the Plot Style, the Line Style property allows you to adjust the type of line displayed. There are 8 options available: Solid, Dots, Dash, Dash Dots, Long Dash, Long Dash Dot, Long Dash Dot Dot and Stippled. 
  • Line Width - Allows you to adjust the width of the Tenkan Line of the Ichimoku Cloud tool. Moving the slider bar to the right increases the thickness of the line. 
  • Line Colour - Allows you to adjust the colour of the Tenkan Line of the Ichimoku Cloud tool. 
  • Visible - Un-tick this checkbox to hide the Tenkan Line of the Ichimoku Cloud from the chart. 

Kijun Plot Style: Expands to display the line properties of the Kijun line. The properties are identical to those listed in the Tenkan Plot Style.

Chikou Plot Style: Expands to display the line properties of the Chikou line. The properties are identical to those listed in the Tenkan Plot Style.

Up Cloud Style: This field expands to display the following options:
  • Line Style - The Line Style property allows you to adjust the type of line displayed. There are 8 options available: Solid, Dots, Dash, Dash Dots, Long Dash, Long Dash Dot, Long Dash Dot Dot, Stippled. 
  • Line Width - Allows you to adjust the width of the Up Cloud Line. Moving the slider bar to the right increases the thickness of the line. 
  • Line Colour - Allows you to adjust the colour of the Up Cloud Line. 
  • Transparency - Use this slider bar to adjust the transparency of the Up Cloud line, moving the slider to the left will increase the transparency of the tool. 
  • Fill Transparency - Use this slider bar to adjust the transparency of the Up Cloud shaded area, moving the slider to the left will increase the transparency of the tool. 
  • Visible - Un-tick this checkbox to hide the Up Cloud area of the Ichimoku Cloud from the chart. 

Down Cloud Style: Expands to display the properties of the Down Cloud Style. The properties are identical to those listed for the Up Cloud Style.

Offset: Moves the tool forward or backwards in time. The offset is measured in bars, so a value of 2 will push the tool forward 2 bars and -2 will move the tool back 2 bars.

Tool Transparency: Use this slider bar to adjust the transparency of the tool. Moving the slider to the left will increase the transparency of the tool.

Visible: Un-tick this checkbox to hide the tool from the chart.

Show in Price Scale: When selected the current Ichimoku cloud values will be displayed in the Price Scale.

 Last updated Wed, Aug 7 2019 1:39am

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