Ichimoku Trading Checklist - 5 Rules

2025년 12월 14일

🧠 Description

This indicator implements a rule-based checklist built on Ichimoku Kinko Hyo, complemented with RSI and price structure, designed to help traders objectively evaluate whether a bullish setup is valid or not.

⚠️ This indicator does NOT generate buy or sell signals.
⚠️ It is NOT a trading system or financial advice.

The core philosophy is discipline and consistency:
If there is no setup, there is no trade.
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✅ The 5 Rules Evaluated
1. Chikou Span above price (26 bars back)
Confirms that current price is above historical price, validating a bullish context.
2. Bullish TK Cross (Tenkan-sen > Kijun-sen)
Measures bullish momentum within the Ichimoku framework.
3. Bullish divergence or convergence between RSI and price
Evaluates relative strength using recent RSI pivots and price structure.
4. Kumo breakout followed by a valid pullback
Requires a bullish cloud breakout and a pullback that respects the structure.
5. Bullish Kumo (green cloud / twist)
Confirms that the Ichimoku cloud supports a bullish bias.
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🚦 Decision Traffic Light (Final Row)
The last row of the table provides a traffic-light style summary:
• 🟢 5/5 rules met → Valid setup
• 🟡 1–4 rules met → Incomplete setup
• 🔴 0 rules met → No trade
Core message displayed: “No setup, No trade!” 🚫
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🎨 Customization
Through the Inputs panel, users can customize:

• Header, body, and footer background colors
• Traffic-light colors and icons (🟢 🟡 🔴)
• Text alignment (left / center / right)
• Optional rule counter (x/5)

⚠️ Tables do not use TradingView’s Style tab; all customization is handled via Inputs.
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⏱️ Timeframe
The indicator is timeframe-agnostic, but it was designed and tested primarily on the 1H timeframe, where Ichimoku and RSI structure tend to be more consistent.
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⚠️ Disclaimer
This script is provided for educational and informational purposes only.
It does not constitute financial advice or a recommendation to buy or sell any asset.
Trading involves risk, and all decisions remain the sole responsibility of the user.

Remember that every strategy is based on probabilities and scenarios that you have already tested in hundreds of trades.
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👤 Author
© Yesid Correa Cano
Pine Script v6
License: Mozilla Public License 2.0 (MPL-2.0)

2025년 12월 15일

릴리즈 노트

🔄 Update Notes – Version 6

What’s new in this update

This version focuses on accuracy, robustness, and full visual consistency with Ichimoku theory, especially regarding Kumo structure and breakout validation.

✅ Key Improvements

1. Corrected Kumo Breakout Logic (Rule #4)

The Kumo breakout is now evaluated using the proper Ichimoku displacement (26 bars forward).

A valid breakout requires price to: Come from below the entire cloud, and Close above the displaced Kumo top.

This prevents false positives where price is still trading inside or above an undisplaced cloud.

2. Stateful Breakout + Pullback Validation

After a valid breakout, the script tracks a pullback to the Kumo top with a bullish close. If price closes back below the cloud, the setup is automatically invalidated.

2025년 12월 18일

릴리즈 노트

Update Notes – Rule 4 Logic Refinement

This update improves the internal logic of Rule #4 – Kumo breakout + pullback to better align the script with real-world Ichimoku price behavior and visual chart interpretation.

What changed:

The breakout condition now validates a bullish breakout above Leading Span B (Senkou Span B), allowing the previous candle to touch the cloud instead of requiring a strict close below it.

A breakout is only considered valid if price transitions from below (or touching) the cloud to a confirmed close above Leading Span B.

The pullback logic has been refined to:

Accept a retest of Leading Span B within a configurable number of bars.
Allow a configurable tolerance when price retests the level (to avoid false negatives caused by minor price deviations).

The rule is only marked as passed when:

A valid breakout has occurred, A pullback to Leading Span B is confirmed, Price remains above Leading Span B at the current close.

Why this matters:

This refinement reduces false negatives and ensures Rule #4 behaves consistently with how Ichimoku traders visually identify breakouts and confirmations on live charts, while preserving the original concept and rule naming.

No changes were made to the remaining rules or to the checklist structure.

2025년 12월 18일

릴리즈 노트

🔧 Update – Rule #4 Logic Refinement (Kumo Breakout + Pullback)

Rule #4 (Kumo breakout + pullback) has been simplified and aligned with classic Ichimoku interpretation to avoid false negatives.

What changed:

The rule now validates a bullish breakout when price clearly breaks above the active leading span:

Leading Span B when SpanB > SpanA
Leading Span A when SpanA > SpanB

Price must have previously been below or inside the Kumo, ensuring a true traversal of the cloud.

This removes unnecessary state-based conditions that could keep the rule marked as false even when price is already trading above the Kumo.

Result:

Rule #4 now turns ✅ as soon as a clean bullish Kumo breakout is confirmed, in line with practical Ichimoku usage.

No changes were made to the rule name or to the other checklist conditions.

This adjustment improves clarity, consistency, and real-time usability of the checklist without altering its original philosophy:

No setup → no trade.