Ichimoku Demystified for ThinkorSwim

markos

markos

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# From TSL in March 2018
#19:14 Mobius: Do you know what Ichimoku actually is, in logic/math terms? It's a Detrended Range Study.
#19:17 Mobius: Here is Ichimoku with meaningful names. Names that identify what is happening in the study
#19:19 Mobius: Ichimoku is nothing more than ATR with extended ranges that are detrended.
#19:20 Mobius: Makes no difference what the lenghts used in the study are. All Same.
#19:21 Mobius: Not trying to burst anyone's bubble. Just trying to help folks understand clearly what they're using to make trading decisions For example, If your using Ichimoku and you want to confirm signals, you'd naturally not want to use multicollinear studies. So studies like ATR and Keltner Channels and the like would be studies to avoid.
Code:
# Ichimoku Demystifyed
# Nothing but the names have been changed to ones that have meaning
# Mobius 3-2018

input Short_period = 9;
input Long_period = 26;

def h = high;
def l = low;
def c = close;
plot Short_Range = (Highest(h, Short_period) + Lowest(l, Short_period)) / 2;
plot Long_Range = (Highest(h, Long_period) + Lowest(l, Long_period)) / 2;
plot "Avg SR_LR" = (Short_Range[Long_period] + Long_Range[Long_period]) / 2;
plot "Avg SuperRange" = (Highest(h[Long_period], 2 * Long_period) + Lowest(l[Long_period], 2 * Long_period)) / 2;
plot DetrendedClose = c[-Long_period];

Short_Range.SetDefaultColor(GetColor(1));
Long_Range.SetDefaultColor(GetColor(2));
"Avg SR_LR".SetDefaultColor(GetColor(3));
"Avg SuperRange".SetDefaultColor(GetColor(4));
DetrendedClose.SetDefaultColor(GetColor(5));

DefineGlobalColor("Bullish", Color.YELLOW);
DefineGlobalColor("Bearish", Color.RED);
AddCloud("Avg SR_LR", "Avg SuperRange", globalColor("Bullish"), globalColor("Bearish"));

#17:03 AlphaInvestor: I posted the Ichimoku Demystified above ... with some of the original dialog from Mobius
 
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