MTF Ichimoku Strategy (4H & 1H) Gus81

Core Idea

This is a multi-timeframe Ichimoku alignment strategy.
It looks at the 4-hour (higher timeframe) and the 1-hour (lower timeframe) charts at the same time.
Trades are only allowed when both timeframes agree that price is trending in the same direction.
• Long (Buy) if both 4H and 1H price are:
• Above the top of the Ichimoku cloud (Kumo = Senkou Span A / Senkou Span B)
• Above the Kijun-sen (baseline)
• Short (Sell) if both 4H and 1H price are:
• Below the bottom of the cloud
• Below the Kijun-sen

This ensures trades only happen when trend strength is confirmed on two timeframes.

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Ichimoku Logic Used

The script manually computes Ichimoku levels instead of using ta.ichimoku():
• Tenkan-sen (Conversion Line): (9-period highest high + 9-period lowest low) / 2
• Kijun-sen (Base Line): (26-period highest high + 26-period lowest low) / 2
• Senkou Span A: (Tenkan + Kijun) / 2
• Senkou Span B: (52-period highest high + 52-period lowest low) / 2

Then it uses request.security() to fetch these values for 4H and 1H timeframes, regardless of the chart you apply it on.

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Trade Execution
• Entry:
• If conditions align, a long or short order is opened.
• If an opposite position is open, the old one is closed first (“flip”).
• Stop Loss & Take Profit (dynamic):
• SL and TP are set as a percentage of the average entry price.
• Example:
• Long trade SL = avgPrice * (1 - riskSLpct/100)
• Long trade TP = avgPrice * (1 + riskTPpct/100)
• Defaults: SL = 2%, TP = 4%.
• Cooldown filter:
• Prevents new trades until cooldownBars candles have passed since the last entry (default 12 bars).
• Reduces over-trading and whipsaws.
• Optional Opposite Exit:
• If enabled, a position will close when the opposite signal appears, even if SL/TP is not hit.

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Visuals on Chart
• 4H Kumo Cloud plotted in teal
• 1H Kumo Cloud plotted in orange
• Kijun lines (blue for 4H, orange for 1H)
• Background shading: green when long conditions active, red when short
• Markers: triangles below/above bars for BUY/SELL signals

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Alerts

Two layers of alerts:
1. Static alertcondition() → lets you set alerts via TradingView’s UI.
2. Code-fired alerts with cooldown → sends push alerts when conditions trigger, formatted as:

Ichimoku MTF | BUY 4H+1H | EURUSD | TF:60 | Close:1.0765

This way you can link alerts directly to your phone.

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Backtesting

Since it’s a strategy():
• Runs through historical bars automatically.
• You can check net profit, drawdown, win rate, profit factor in Strategy Tester.
• Date filtering is possible via inputs (defaults: Sept 2024 → Sept 2025 if toggled on).

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Strengths
• Trend alignment filter: only trades in strong, multi-timeframe trends.
• MTF Ichimoku logic: reduces false signals common in single-timeframe Ichimoku.
• Risk control: built-in SL/TP and cooldown.
• Visual clarity: cloud overlays + background shading.

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Limitations
• Works best in strong trending conditions (Ichimoku’s strength).
• Will whipsaw in sideways / choppy markets.
• SL/TP are fixed percentages, not volatility-adaptive.
• No position sizing logic beyond “% of equity”.

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In short: This is a trend-following breakout/confirmation strategy using Ichimoku across 4H + 1H. It waits for multi-timeframe agreement above/below the Kumo and Kijun before entering trades, manages risk with SL/TP and cooldown, and is fully backtestable in TradingView.