Scanning Technically

Scanning the Clouds

Bill Shelby | 

The Ichimoku clouds that is!  We've just added the ability to search on the Ichimoku cloud parameters.  We won't go into great detail here about the specifics of the Ichimoku cloud calculatoins as it can be quite involved.  If you'd like to investigate more, check out our ChartSchool article here.

You can now search for any of the 4 following Ichimoku parameters:

Base line (Kijun-sen )
Conversion Line (Tenkan-sen)
Leading Span A (Senkou Span A)
Leading Span B (Senkou Span B)

In the standard user interface the Ichimoku indicators appear in the Additional Technical Expressions pane:


In the advanced user interface they can be found in the Price, Volume, and Indicators list:


You can also scan for these patterns:

'In Ichimoku Cloud'
'Above Ichimoku Cloud'
'Below Ichimoku Cloud'
'Green Ichimoku Cloud'
'Red Ichimoku Cloud'

which can be found in the following locations:




Let's do the Time Warp...
One of the interesting aspects of the Ichimoku cloud is that some of the indicators are plotted in either the future or the past.  The Leading span lines, which form the 'cloud', are plotted 26 days in the future and the Lagging line 26 days in the past.  Since the Lagging line is in the past, we don't scan for this value as there is no corresponding effect on today's price.

So what does that mean if we do a search for these 'today'?  The scan engine has no idea about prices 26 days in advance (wouldn't you love to have that feature!), so scanning the cloud 'today' looks at the cloud lines 26 days in the past, which in turn are plotted 26 days in the future,!  This matches what you would see when doing a SharpChart:

Screen shot 2010-10-11 at 10.50.37 AM

In this example, the values for the Leading A and Leading B lines (which define the cloud) are from Sept 1, plotted forward to Oct 8.  Trying to scan for the values of these parameters as they exist on Oct 8th isn't possible as they are plotted into the future where we don't know any price data.  This is visually reflected in the SharpChart where the cloud extends off the chart to the right, 26 days past current price data. 

So the values shown for the Ichimoku indicator on Oct 8th  in the SharpChart of DIA for the Leading A&B lines won't be what the scan engine uses.  On Oct 8th the A and B lines are 107.58 and 104.8 respectively, but the scan engine uses the values from Sept 1 which are 102.01 and 101.17.
This can become a bit mind-bending and I encourage you to read more about it in ChartSchool.

Good luck!

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