Alternative Ichimoku

Alternative Ichimoku is an alternative to the famous indicator Ichimoku Cloud. The main difference between Ichimoku Kinko Hyo and Alternative Ichomku is the shorter periods for the indicator.

The main components of Alternative Ichomku are the cloud (area between thick lines) and the trigger line (blue line). The cloud is useful in identifying trend. When price trades above the Cloud, trend is up or bullish and when price trades below cloud trend is down or bearish. When price breaks through the cloud from below, it is beginning of an up trend and when cloud is broken downward from above the cloud, it is the beginning of a down trend.

Price trading within the cloud indicates a sideways trend. The cloud acts as support resistance zone. When price is entering the cloud from below, it acts as resistance and when price falls into the cloud from above, it acts as support. The blue line is called the trigger line. This line can be used as stop loss for open trades. Also price crossing above or below this line marks the possibility of a trend change. The indicator also displays useful info on the chart like volatility, trading range for the last days etc.

This is helpful in setting targets. The comment box can be dragged to any place on chart.

Usage

• Download the attachment.
• Copy it to your company VertexFX  Local VTL Files folder i.e. C:Program FilesCompany Namevtl10Local VTL Scripts
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.
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