Kumo no Nami Trend Strength Identifier T2[T69]

🧠 Overview
Kumo no Nami is a custom trend strength indicator that combines Ichimoku cloud dynamics (Kumo) with wave momentum (Nami) to identify trend direction, reversals, squeezes, and breakouts using Z-Score analysis. It adapts to different modes (Ichimoku, MA, EMA) for a flexible interpretation of price structure tension vs. movement strength.

🔍 Core Logic

• Kumo Width (Cloud Pressure): Measures the normalized spread (Z-Score) between two dynamic price levels (e.g., Senkou A-B or Base-Tenkan).
  
• Nami Strength (Wave Energy): Measures how far current price dislocates from a recent range using Z-Score of the difference between close and Donchian/MA.
  
• Z-Score Normalization: Ensures both metrics are statistically comparable, regardless of volatility regime.
  
• Squeeze Detection: Identifies compression before potential volatility expansion.
  
• Breakout/False Break: Detects whether movement is legitimate or noise.
  
• Final Top/Bottom: Highlights a strong burst post-squeeze, often signaling exhaustion or trend climax.
  

⚙️ Features

• 🌀 Multiple Kumo Modes:
  
• Kijun-Tenkan
  Senkou A - B
  SMA Fast - Slow
  EMA Fast - Slow
  
• 🟨 Z-Score Based Squeeze Monitoring
  
• 🟥 Final Burst Alerts
  
• 🟩 Trend Continuation or Fake-out Detection
  
• 🎨 Dynamic Background Coloring for visual signal clarity
  

🔧 Configuration

• 📊 Inputs
  
• Kumo Mode (kt, sab, sfs, efs) – Choose method to compute Kumo (Cloud) width.
  
• Kumo Lookback – Lookback period for cloud Z-Score analysis.
  
• Nami Lookback – Lookback period for wave dislocation measurement.
  
• Squeeze Threshold – How low Z-Kumo must fall to signal potential squeeze.
  
• Burst Thresholds:
  Burst Kumo → Z-Kumo must rise above this to be considered bursting.
  Burst Nami → Nami Strength threshold for final trend climax.
  
• Ichimoku Config – Tenkan, Kijun, Senkou B, and displacement.
  
• MA Config – For Fast/Slow variants, SMA/EMA lengths.
  

🧪 How It Works

1. Compute the Kumo Width depending on selected mode.
   
2. E.g., |Tenkan - Kijun| or |Senkou A - Senkou B|
   
3. Normalize this width with its Z-Score to get Z-Kumo Width.
   
4. Compute Nami Strength:
   
5. Z-Score of how far close deviates from a Donchian channel or moving average.
   
6. Evaluate signal logic based on the two:
   

📈 Behavior & Signals

• Trend Range (Sideways Consolidation)
  
• =>Z-Kumo < 0 and |Nami Strength| > 2
  
• False Break (No meaningful price movement)
  
• =>Z-Kumo < 1 and |Nami Strength| < 1
  
• Squeeze Watch (Potential breakout loading)
  
• =>Z-Kumo < Squeeze Threshold
  
• Final Burst / Climax
  
• =>Z-Kumo > 2.5 and |Nami Strength| > 3
  
• Bullish Breakout
  
• =>Z-Kumo > 1 and Nami Strength > 2 and not false break
  
• Bearish Breakout
  
• =>Z-Kumo > 1 and Nami Strength < -2 and not false break
  
• Reversal Detection
  
• Crossovers of Nami Strength across 0 (bull/bear) while not in squeeze
  

🧠 Advanced Concepts Used

• Z-Score:
  
• =>(value - mean) / standard deviation for detecting statistically significant moves.
  
• Squeeze Principle:
  
• =>Low volatility → potential buildup → expansion.
  
• Price Dislocation (Wave Strength):
  
• =>Measures how far current price is from its mean range.
  
• =>Cloud Tension (Kumo Z-Score):
  
• =>Reflects pressure or neutrality in the price structure.
  
• Trend Confirmation:
  
• =>Only if both metrics agree and no false break conditions are met.