Ichimoku is a complex yet famous collection of indicators that forms one big indicator to rule them all.
Ichimoku can serve as a trend indicator as it is mostly directed towards the future (the cloud is always several periods in advance of the current price).
However it is so complete that you can use it in many different ways that we will let you the joy to discover.
We do not recommend using this indicator with zero knowledge of what Ichimoku really is, as it can be fairly complicated and is not as “straight forward” as other indicators.
Here is a quick guide/cheatsheet to better understand this indicator
- SSA (Lead 1 on tradingview) and SSB(Lead 2 on tradingview) forms the Kumo Cloud one of the most important part of the Ichimoku Cloud indicator, SSA is the green line and SSB is the red line.
A great rule of thumb is that whenever the price is above the cloud and the cloud is green (SSA > SSB) there is a strong upward trend. If the price is below the cloud and the cloud is red (SSB > SSA) then, logically there is a strong downward trend. Nevertheless, remember that we are in the crypto world, so everything an indicator tells you does not necessarily means something.
- Kijun (Base line on tradingview) is the thin red line. With defaults settings it is calculated as so : (26-period high + 26-period low)/2
- Tenkan (Conversion Line on tradingview) is the thin blue line. With defaults settings it is calculated as so : (9-period high + 9-period low)/2
As you may have noticed, Kijun and Tenkan are kind of like moving averages. And so they can be analyzed as such. For exemple if the Tenkan crosses up the Kijun, it means there is a good chance an uptrend is happening (Think of the golden cross of two MAs).
- Chikou (lagging span on TradingView) is not used in Kryll.io due to its very low utility in a tradingbot.
You can learn more about Ichimoku on Investopedia.
Usage in Kryll.io
Now that you know a bit more about Ichimoku and know that you can accomplish something big, it would be good to know how to use it inside a trading bot in kryll.io.
Here’s a quick guide on how to use the brand new Ichimoku Block in Kryll.io strategy editor.
- Analysis period: The period that Ichimoku will take into account (If you choose 4H, Ichimoku will use 4H candles).
- Trigger type: Position or Crossover.
- Position: Triggered when the analyzed line is above or below the compared line.
- Crossover: Triggered when the analyzed line crosses the compared line(depends on the “compared to” section).
- Analyzed line: This is the first line you have to choose on the settings. You can choose between : SSA, SSB, Kijun, Tenkan and Price.
- Compared line: This is the line that the analyzed line will be compared to. You can choose between : SSA, SSB, Kijun, Tenkan and Price.
- Conversion Line Periods: Periods on which the Tenkan (Conversion line) is based on.
- Base Line Periods : Periods on which the Kijun (Base Line) is based on.
- Lagging Span 2 periods : Period on which the Lagging Span 2 is based on.
- Displacement: Linked to the Ichimoku indicators displacement.
Note that the settings on Ichimoku are extremely important, it does not only changes the period of an MA. You can’t expect it to “work” correctly if you are putting random numbers. Yet, we strongly encourage you to try out new settings, or search on the internet for new ones. Don’t hesitate to share them on our Kryll.io Telegram channels too.