Help needed scanning for Ichimoku chart patterns

jdugan

I submitted my question to StockCharts support and received a link to a support article:
https://support.stockcharts.com/doku.php?id=scans:advanced_scan_syntax:ichimoku_scans#ichimoku_time_offsets

I am scanning for Ichimoku cloud setups. Criterion 1, the current candle must close above the cloud (the cloud might be red or green). Criterion 2, the Span A value must be greater the Span B value, or, in other words, the cloud 26 days out will be green. (Today is 08/08/23; 26 periods in the future is 09/14/23.) The scan line for Criterion 2 I have written is this:
[[GROUP IS SP500] ] AND [ICHIMOKU SPAN A(9,26,52) > ICHIMOKU SPAN B(9,26,52)]

That scan returns a lot of charts, one of which is BBWI which may be seen here: https://schrts.co/NyynWzxI
But BBWI does not fit the criteria of Span A (=37.53) > Span B (=38.68). The Ichimoku cloud 26 days out from today (09/14/23) is still red. I am looking (among other criteria) for stocks which show green clouds 26 days out, e.g., XOM which may be seen here: https://schrts.co/BDcMWtNF

If I read the support article correctly (which I am not certain I am) the scan engine today will use the Span A and Span B values from 26 periods back (06/30/23 in my example.) 26 days ago the Ichimoku chart was "predicting" that today XOM's chart would be red (Span B is greater than Span A). The article seems to think that scanning for something 26 days out is pointless, but in fact, if Ichimoku clouds work, one of their values is that very prediction, which is not a prediction at all, since today's closing price is the last piece of the puzzle required to compute the values of Span A and Span B on 09/14/23.

Maybe what I am looking for cannot be done. But I don't want to give up yet.

Thanks for your help.

lmkwin

A sample scan from ChartSchool article

[type = stock] AND [country = US]
AND [Daily SMA(60,Daily Volume) > 100000]
AND [Daily SMA(60,Daily Close) > 10]

AND [Daily Close > Daily Ichimoku Span B(9,26,52)]
AND [Daily Ichimoku Span A(9,26,52) > Daily Ichimoku Span B(9,26,52)]
AND [Daily Close x Daily Ichimoku Base Line(9,26,52)]

It looks like your line matches up with the sample scan.

The cloud is taking the past data and projecting it forward. The data is basically based on midpoints of different price channels that are the parameters. The view of BBWI with the 52 period Price Channel shows the middle line which helps define the "future" cloud. The 9 and 26 period Middle lines are also used in the calculations.The scan is not using "future" dates, it's all based on past and current data.



If I adjust that 52 period Price Channel 26 periods forward, the chart looks like this.



Notice how the Price Channel Middle line traces out the "future".

I don't use this indicator, but this is what I got from reading the ChartSchool link you shared.

jdugan

Thank you for your reply. I will study what you've provided and see if that enables me to scan for the green cloud in the future.

lmkwin

Try a scan for Middle Price Channel 52 less than Middle Price Channel 26. That should get you in the ball park for a green cloud out there in the future. You can't scan on offset price channels or moving averages. The 52,26 in that parameter is just for display purposes.

Green 26 middle line rises above Red 52 middle line, cloud turns green in the "future". Red above Green, cloud turns red.

jdugan

I've replicated your chart with the addition of the 9 day price channel, shown in cyan. It is not clear to me why the Ichimoku Span A forming the lower edge of the cloud projected out 26 periods is 37.60, whereas the 9 day price channel projected out 26 periods is 37.84



But it still begs the question. How do I create a scan the picks up charts like XOM which shows a green cloud 26 periods out and does not pick up BBWI which shows a red cloud 26 periods out?


It is hard to see, but the XOM chart shows that Span A will move above Span B on 9/7/23.

lmkwin

the other lines are based on calculated values that combine some of the middle line values, so it's NOT like you are going to replicate the cloud based on a middle price channel scan. Looks like you middle price channel 9 line is pretty close, but not exactly a mirror of the other cloud line, so scan for

[group is SP500]
and [1 days ago Middle Price Chan(52) < Middle Price Chan(9)]

I don't use the indictor so I'm not a good resource in what the "future" cloud or the lines mean. But, just like weather, I'm sure that the September 7, 2023 forecast is subject to change between now and then.

Also in the Scan filters, down at the bottom of the Technical Indicators dropdown window are a bunch of Ichimoku options you may find of use.

jdugan

Yes, the weather will change between now and 9/7, but the cloud values will not, since they are calculated based on current known values.

Thanks for your help. I’ll continue to play with this to see if I can get a scan that gets me close to what I am looking for.

Sofearnot

Ichimoku was designed by a Japanese reporter to be a "One-stop shop." It combines aspects of channels (Similar to Bollinger Bands with moving averages, and various other elements.) It is designed, so that the Astute investor need Look no further...

I, personally, have had mixed results with it. Can't really say much more about it but this article may be of Some use: https://www.investopedia.com/terms/i/ichimoku-cloud.asp
G/L I hope you get it functioning the way you want it to.