Ichimoku Cloud (aka Ichimoku Kinkō Hyō)

[DaveSkender]

Community discussion about Ichimoku Cloud (aka Ichimoku Kinkō Hyō)

For calculation, see Ichimoku Cloud (Wikipedia) or wayback on KumoTrader/IchiWiki.

[ijpc1996]

Hi Dave, very impressive the Ichimoku Cloud. What is the best way to create an image of the result data? Do you recommend a specific library?

[DaveSkender]

Ichimoku Cloud is primarily read off of a price overlay chart. Personally, I've not explored the universe of options of charting libraries.

Let's continue this conversation about charting and data visualization in #430

[wclark17]

Why does this function only take 3 parameters while everywhere else takes 4 (of different names, but that is minor).

[DaveSkender]

Ref: Ichimoku Cloud (Wikipedia)

Breaking down Ichimoku a bit more:

Tenkan-sen is a signal line, it uses the signalPeriods parameter (default=9)
Kijun-sen is a high/low confirmation line, it uses the shortSpanPeriods parameter (default=26)
Senkou Span A is the average of the last two, offset forward by shortSpanPeriods
Senkou Span B is a high/low over the longSpanPeriods parameter (default=52), offset forward by shortSpanPeriods
Chikou Span is just Close price offset backward by shortSpanPeriods

The use of these 3 parameters goes on a common convention that this offset is the same amount as is used for Kijun-sen lookback periods. At least that is my interpretation and a very common interpretation of the original author's intent.

I think, adding a fourth parameter breaks this convention by allowing the offset to be specified differently. Adding a fifth parameter would mean you can have different custom offset for Senkou spans and Chikou spans.

I think I have some ideas on how to implement these extra options. Follow design discussions here: #558

[wclark17]

Yes, sorry, 'everywhere' Google has been directing. :) I've been reading https://www.altcointrading.net/ichimoku-cloud/ a bit, and it's the 'displacement', or 4th parameter that I've been working on. I guess my confusion because I was on FTX which uses Trading View (and on TradingView itself). Thanks for pointing out the variations, I will check them out as well.

I researched a bit more on the Chikou Span. In what I read, for the most part the Chikou Span offset is equal to the shortSpanPeriods, but some people trading crypto, as referenced in that link, breaks that equality and uses a separate 'displacement' parameter. After working on it a bit, I don't know if I agree with those settings.

I think it would be good to have the parameters, I will follow the discussion!.
Thanks for the quick reply and thanks for a great library!!

[DaveSkender]

I've added a 4 and 5 parameter variant in version 1.17.1. Check it out. Feedback appreciated.

[wclark17]

Will do. Thanks for this.

Although, now that I played with the settings and seeing exactly what the ‘offset/displacement’ does, I think I like the default.

But appreciate the response and quick turnaround!

[DaveSkender]

Yah, I see a lot of debate out there on this indicator around the best use of parameters and values. I figure I'll just give you the options and let you decide.

[Salardx]

Hi,
sorry for asking this, maybe i'm not much familiar with Ichimoku
but when i check this andicator in tradingview i see that this indicator shows SenkouSpan A&B in for the next 26 candles in future
i expected something similar here
but the result of calling GetIchimoku is the same amont of quotes that I provided,
i can't see any result for future candles

[DaveSkender]

Yes, it's true that Ichimoku does traditionally expand into the future and this library currently does not. I got stuck when originally implementing when trying to interpret "the future" from a data perspective. Does that include holidays and weekends? And if so, who's holidays and what timezone? What about hourly and minute data? Does that start on the next trading day market open?

I think there's potential room for improvement here but might need some help solving this riddle.

[Salardx]

I see, if we could find a solution the way you described, it would be more perceise and practical, but at the moment I think we can have a flat view and don't consider any weekend/holiday/timezoon, only next 26 candles would matter (in the exact timeframe of previous candles), I mean although it would seem simpler, but at least this tool would seem more practical, because as you know there are lots of strategies based on future clouds of Ichimoku.
again many thanks for your awesome tools

[DaveSkender]

Adding to backlog for tracking: #675

[hieu-n]

There might be something wrong with the default offset for Senkou and Chikou. I needed to set them to 25 (instead of 26) to get the correct offset as shown in TradingView chart with default Ichimoku settings which use 26.

Not a big problem for me. I just want to posted here, to see if anyone experiences the same, or maybe it's just my error.

[DaveSkender]

When evaluating, please also consider that TradingView may not be right.

[DaveSkender]

I do think TradingView is incorrect on this one. If the definition calls for it to “plot results x periods ahead”, also phrased as “time-shifted forwards (into the future) x periods”, it should result in x forward periods, not x-1. Right?

Shift series 1 period, you get 1 future value.
Shift series 5 periods, you get 5 future values.
Shift series 26 periods, you get 26 future values.

If TradingView or Binance have 25 periods in an intended 26 period shift case, it’s very likely wrong. Either that or they simply drop the last value.

If your goal is to shift 25 places while specifying 26 kijunPeriods, you can override by setting chikouOffset to 25.

var results = quotes.GetIchimoku(9,26,52,26,25);

See our documentation on Ichimoku

[DaveSkender]

There’s also a senkouOffset override.

[DaveSkender]

As of right now, the only open issue with this indicator is the lack of future values beyond the last price (#675). The calculation and quantity of future values is known and not an open concern for me, I know how to do that.

I only need to decide on the best date values to apply to those future periods.

Please vote on poll #1060 and continue all discussion related to resolving this specific issue there. I’d like to get some sentiment information from everyone before deciding on an approach.

[exogony]

Hi
Thanks for the package.

It looks like senkou span b uses future values to calculate the current span b. If senkou b periods is 50, the last 50 time points don't have a value, likely indicating that future values are used in the calculation. Am I wrong?

[DaveSkender]

Yes, you're wrong. Senkou span B is calculated with current and prior period values and then simply shifted to future dates.

[exogony]

Sorry, I got confused with the names, I meant the chikou span. Based on the description it projects the current price back, so the current chikou_span is the closing price of n forward timepoints. Is that right?

[DaveSkender]

Yes, you are right. Chikou Span pulls a copy of close price backwards. It’s not actually used to calculate any of the other values, so I wouldn’t call it “repainting”, it’s simply not shown for the last periods until time elapses. You can see this in our demo chart.

[AdoNunes]

nice demo! very useful to visualize all the indicators