Strategy using Ichimoku cloud indicator

[sambathraj]

Hi,
I am trying to build a custom strategy using the Ichimoku cloud indicator (downloaded from Ichimoku Cloud Indicator NT8 - NinjaTrader Ecosystem). My problem is that the cloud region and the Leading Span A and Leading Span B are displaced. You can fix that by setting displacement to 26, but it pushes all the plots. When using this inside a strategy, it is not easy to handle the displacement.

As I understand, displacement is only visual impact and not the actual values. But this is critical when visualizing the results in the chart.

Can anyone help with the following information?
1) How to set the displacement for Leading Span A and Leading Span B alone?
2) How to make sure the chart is displayed properly in the strategy analyzer. Currently setting the Cloud displacement property to 26 doesn't help.
3) By default, which plots are displaced?
4) Why there is no proper documentation for this indicator?

When using this in strategy, I have been advised to use the 26 period look back. i.e. to check whether the Close[0] has touched the cloud, I have to check like this.
if (Close[0] >= this.SenkouSpanB[26]) {
do something..
}
What about Conversion Line and Base line? Do we have to do same thing?

This indicator is one of the top used indicators. Can you please add this to NJ8 standard list of indicators with proper help and documentation?

I would appreciate your help.

Thanks,
Samb

[NinjaTrader_ChrisL]

Hi Samb, thanks for posting. All scripts shared to the Ecosystem website come "As Is", so we will not be able to modify the code after it's posted. The answer to question 1 is, you would need to modify the original script to individually displace the plots.

2. Can you give an explanation and example of what is not working properly in the strategy analyzer? My test script works as expected.

3. Only the Cloud is displaced visually. This is the area between SenjouSpanA and B. If you disable "Display Cloud Only" you can see the individual plots.

4. This was a project made by our support staff, not an official indicator, so there is limited documentation on it. I will add a request to our development team asking them to add this indicator to the standard library.

Kind regards,
-ChrisL

[sambathraj]

Thanks for your reply.

1. I am working on creating a strategy. In order to assess the results, I constantly use the charts to see why something is not working. If you set the displacement properly, it moves all the plots ahead. Not only the SpanA and SpanB. It creates confusion when you are examining the results.
2. Can you please help me with the following?
   1. My strategy requires to check if the TenkanSen and KijunSen cross over. At a given time, should I be checking TenkanSen[26] and KijunSen[26] against Close[0]?
   2. I need to check whether the Close[0] is above the cloud. Should I be checking for Close [0] > Span A[26] and Close [0] > Span B[26]?
   3. Which Plots require to use 26 bars ago and which plot is 0 bars ago when compared to close price?

[NinjaTrader_ChelseaB]

Hello sambathraj,

Yes, BarsAgo in a script is the same as Displacement forward visually on the chart.

If you have displaced a plot 5 bars forward, this means you are showing the value from 5 bars ago over the current bar.

In a script, that value from 5 bars ago you are shifting forward visually on the chart, can be found with a BarsAgo index [5].

My strategy requires to check if the TenkanSen and KijunSen cross over. At a given time, should I be checking TenkanSen[26] and KijunSen[26] against Close[0]?

Yes, you would be comparing Close[0], the current bar, as it would show on the chart, with TenkanSen[26], the value of the TenkanSen from [26] bars ago which was shifted visually 26 bars to the right on the chart.

I need to check whether the Close[0] is above the cloud. Should I be checking for Close [0] > Span A[26] and Close [0] > Span B[26]?

Yes, compare the Close[0] is above both plots that border the cloud.

Which Plots require to use 26 bars ago and which plot is 0 bars ago when compared to close price?

Anything displaced forward on the chart, would be found with BarsAgo indexes in the code. If it is not displaced forward on the chart, it on the current bar [0] in the code.