This is the popular Ichimoku Indicator with an easier way to adjust the settings that can help you in your trading.
Components of the Ichimoku indicator:
*Tenkan Sen: Basically it is a moving average that goes from 7 to 9 periods.
*Kijun Sen: Like Tenkan Sen, we are facing a moving average, but this time from 22 to 26 periods.
*Chikou Span: It is the one that represents the current price, but reflected in 22 to 26 periods back.
*Senkou Span A: Unlike Chikou Span, this line is drawn over the next 22 to 26 periods, and its calculation is obtained from the average between Tenkan Sen and Kijun Sen. It is a projected average in the future.
*Senkou Span B: It is the result of calculating the average between the maximum and minimum over the last 44 to 52 periods, representing the following 22 to 26 periods (as well as the Senkou Span A)
As with Occidental trading systems, based on the crossings of averages, with the Ichimoku we will use the crossing of the Tenkan Sen (fast moving average) with the Kijun Sen (slow moving average) as buying and selling signals.
Strategy of this script:
A strong bullish signal is when price and Chikou Span rises above Kumo cloud and Tenkan Sen cross above Kijun Sen.
A strong bearish signal is when price and Chikou Span falls below Kumo cloud and Tenkan Sen croos under Kijun Sen.