A pivot point is a popular intra-day technical indicator used to determine the overall trend of the market over different time frames. The pivot point itself (labeled PP in orange on the chart) is simply the average of the high, low and closing prices from the previous trading day. On the subsequent day, trading above the pivot point is thought to indicate ongoing bullish sentiment, while trading below the pivot point indicates bearish sentiment.

The pivot point (PP) is the basis for the indicator, but it also includes other support and resistance levels that are projected based on the pivot point (PP) calculation. All these levels help traders see where the price could experience support or resistance. Similarly, if the price moves through these levels it lets the trader know the price is trending in that direction.

Here is a quick recap

• When the price of an asset is trading above the pivot point, it indicates the day is bullish or positive.
• When the price of an asset is trading below the pivot point, it indicates the day is bearish or negative.
• The indicator includes six additional levels: S1, S2, S3, R1, R2 and R3. These stand for support one, two and three, and resistance one, two and three.
• Support and resistance one, two and three may cause reversals, but they may also be used to confirm the trend. For example, if the price is falling and moves below S1, it helps confirm a downtrend and indicate a possible continuation to S2.

01a. Use Ichimoku Cloud Break Trader
When true, the Ichimoku Cloud Break Trader conditions for a trade will take effect. See HOW TO USE IT section below for details

01b. Use Ichimoku T/K Cross Trader
When true, the Ichimoku Tenkan/Kijun Cross Trader conditions for a trade will take effect. See HOW TO USE IT section below for details

02. Use Ichimoku Filtering
When true, the strategy will use the Ichimoku indicator to filter all active trading modes. This lets you define precisely in which condition the strategy is allowed to take trades. Those conditions are:

03a. Tenkan Period
Tenkan-sen, or conversion line, creates a moving average of the highest and lowest prices over the past nine periods. It is used to present both support and resistance information. Leave the period value set to 9 (default) unless you wish to test a different variation of Ichimoku.

03b. Kijun Period
Kijun Line is the midpoint between the highest high and lowest low over a specified period of time. Leave the period value set to 26 (default) unless you wish to test a different variation of Ichimoku.

03c. Senkou B Period
The Senkou Span B lines is used to create the cloud of the Ichimoku indicator (combined with the Senkou A). Senkou Span B is used to give traders an idea of future support and resistance. Leave the period value set to 52 (default) unless you wish to test a different variation of Ichimoku.

03d. Senkou Shift
Number of bars to shift the cloud forward in the future. Leave the value set to 26 (default) unless you wish to test a different variation of Ichimoku.

CLOUD BREAK TRADER – 100% AUTOMATED TRADING MODE

• When enabling the Use Ichimoku Cloud Break Trader input, The strategy will place a market order in the direction of the trend when the price bar break through the other side of the ichimoku cloud and closes out of the cloud as pictured below. Additionally the Tenkan line (blue) must be located above the Kijun lines (red) when the price breaks the cloud to the UP side (2nd trade pictured below) or under the Kijun lines when breaking the cloud to the DOWN side (1st trade pictured below).
• You can combine this trading mode with additional indicator filters to become more granular with your entry points. For example, when enabling the HiLo Filtering input as well, the strategy will introduce many new conditions that must be respected before a trade can take place, like always trading in the direction of the Hilo trend or trading only when the price is X tick away from the HiLo trend.

TENKAN / KIJUN CROSS TRADER – 100% AUTOMATED TRADING MODE

• When enabling the Use Ichimoku T/K Cross Trader input, The strategy will:
  • Place a LONG market order when the Tenkan line (blue color) crosses the Kijun line (red color) from under while being above a green or red cloud
  • Place a SHORT market order when the Kijun line (red color) crosses the Tenkan line (blue color) from above while being under a green or red cloud
• You can combine this trading mode with additional indicator filters to become more granular with your entry points.

GLOBAL TRADING FILTER

When the Use Ichimoku Filtering input is checked, the Ichimoku trading logic will filter all active trading modes.

The following logic will be enforced:

• ALWAYS trade LONG while the price is above the cloud
• ALWAYS trade SHORT while the price is under the cloud

 ORDER EXIT MANAGEMENT

When the “Use Ichimoku Exit” input is checked (located in the ORDER MANAGEMENT section), the strategy will close active trades as soon as the Tenkan and Kijun crosses each other, from under or above.