NICHI Beta (NuwenPham's Ichimoku)

# **NuwenPham’s Ichimoku (NICHI)**

**Version BETA.251123a.3.1.2 – Pine Script v6**
**Author:** NuwenPham
**Forked from:** Donovan Wall
**Contributors:** Claude (Anthropic)
**License:** MPL 2.0

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# **Overview**

**NICHI (Nuwen’s Ichimoku)** is a next-generation Ichimoku system that merges the classical Hosoda Ichimoku with a modular adaptive-smoothing engine, enhanced Kumo logic, directional trend counters, and multi-mode bar coloring.

The indicator includes **two completely separate Ichimoku engines**:

* **Standard Ichimoku** – Traditional Donchian-based Tenkan, Kijun, Senkou A/B, and Chikou
* **Advanced Ichimoku** – Fully customizable Ichimoku using 15+ moving-average filters and enhanced logic

NICHI is designed for modern markets—especially **futures and volatile instruments** (NG, CL, ES, NQ, crypto).

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# **Key Features**

## **1. Dual Ichimoku Systems**

* **Standard Mode:**
Classic Donchian Ichimoku with Tenkan, Kijun, Senkou A/B, and Chikou.
Clean, faithful implementation.

* **Advanced Mode:**
Every Ichimoku line uses a **selected smoothing filter** (EMA, KAMA, FRAMA, Hull, McGinley, etc.).
Includes directional persistence tracking, enhanced cloud logic, and adaptive bar coloring.

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## **2. Advanced Filter Engine (15+ Smooth Types)**

Use any of the following for Tenkan, Kijun, Senkou B, or Chikou:

* EMA
* DEMA
* SMA
* SMMA (RMA)
* WMA
* VWMA
* Hull MA
* ALMA
* LSMA (Linear Regression)
* McGinley Dynamic
* KAMA
* FRAMA
* COVWMA
* Moving Median
* 50th Percentile (Nearest Rank)

This transforms Ichimoku into an **adaptive trend system**.

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## **3. Enhanced Cloud (Kumo) Modeling**

* Independent forward offsets for Span A & Span B
* Cloud colors adapt based on strength, direction, and filter behavior
* Cloud thickness reflects volatility
* Neutral cloud state available when spans disagree

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## **4. Directional Persistence Counters**

NICHI tracks the **trend streak** of each main component:

* Tenkan rising/falling
* Kijun rising/falling
* Span A rising/falling
* Span B rising/falling

These counters make cloud and line colors more accurate and stable.

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## **5. Regime-Based Bar Coloring (3 Modes)**

NICHI includes three built-in trading frameworks:

### **Mode 1: Kumo-Based**

Bar color reflects price relative to the cloud:

* Green = Above Kumo
* Red = Below Kumo
* Orange = Inside Kumo

Ideal for **trend-following** and **market regime detection**.

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### **Mode 2: Tenkan/Kijun-Based**

Bar color reflects momentum structure:

* Green = Price above both Tenkan & Kijun
* Red = Price below both

Designed for **momentum entries and TK breakouts**.

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### **Mode 3: Chikou-Based**

Bars reflect historical confirmation:

* Green = Chikou > price (offset period)
* Red = Chikou < price

Excellent for **confirmation-first strategies** where accuracy matters most.

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## **6. Multi-MA Overlay System**

Up to **four optional moving averages**:

* SMA, EMA, SMMA, WMA, HMA, VWMA
* Independent lengths, widths, colors
* Useful for bias, confluence, trend filters

Default: **SMA 200** enabled.

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## **7. TK Cross Signals**

Both systems show TK crosses:

* Standard TK Cross (classic)
* Advanced TK Cross (filtered version)

Crosses appear with clear markers for entry/exit logic.

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# **How to Use NICHI**

## **1. Choose Your Engine**

* **Standard:** Clean, classic Ichimoku
* **Advanced:** Adaptive, filter-driven Ichimoku
* **Both:** Comparative analysis

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## **2. Select Your Filter Type (Advanced Mode)**

Suggested filters:

| Market | Filter Type | Notes |
| ---------------- | ---------------- | -------------------------- |
| Natural Gas (NG) | KAMA or FRAMA | Handles extreme volatility |
| Crude Oil (CL) | McGinley Dynamic | Smooths spikes |
| ES / NQ | SMMA or WMA | Balanced response |
| Crypto | Hull or ALMA | Handles momentum bursts |
| FX | EMA or SMMA | Classic, stable |

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## **3. Choose a Bar-Color Strategy**

* **Kumo-Based:** Trend following
* **TK-Based:** Momentum and breakouts
* **Chikou-Based:** Highest confirmation/accuracy

Each strategy is valid and intentionally distinct.

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## **4. Reading the Cloud**

* **Bullish Cloud:** Span A > Span B
* **Bearish Cloud:** Span A < Span B
* **Neutral Cloud:** Disagreement between spans
* **Thick Cloud:** High volatility / stronger structure
* **Thin Cloud:** Weak trend / potential twist

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## **5. Entry & Exit Concepts**

### **Entries**

* **Momentum Entry:** TK cross with price above the cloud
* **Reversal Entry:** TK cross before a cloud twist
* **Confirmation Entry:** Chikou breaks cleanly above/below past price

### **Exits**

* Price falling through Kijun
* Re-entering the cloud
* Opposite TK cross
* Cloud flipping against position

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# **Recommended Trading Approaches**

## **Kumo-Based Trend Strategy**

* Long above cloud, short below
* Avoid signals inside cloud

Best for swing/position trading.

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## **TK-Based Momentum Strategy**

* Enter on Tenkan/Kijun breakout
* Bar color confirms momentum
* Cloud filter optional but helps

Great for high-velocity markets.

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## **Chikou-Based Confirmation Strategy**

* Enter only when Chikou confirms structure
* Highest accuracy, fewest trades
* Ideal for volatile markets (NG, CL)

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# **Closing Notes**

NICHI is a **research-grade Ichimoku framework** designed to handle modern volatility where traditional Ichimoku often fails.
It supports scalpers, swing traders, and system developers alike.

Experiment with:

* Filter types
* Cloud offsets
* Bar-color modes
* MA overlays

to match your strategy and market.