Dual SD Kijun : Weighted & Normalized | SandiB

11 de nov. de 2024

SD Kijun Sen Base | SandiB


"SD Kijun" leverages the Kijun Sen, combined with weighted standard deviation (SD) bands, to create adaptive trend signals. It offers dual-layer filtering by using the Kijun Sen for both standard deviation-based bands and a normalized filter, enhancing trend-following capabilities while adapting to volatility.

Core Components and Mechanics

1. Kijun Sen (Baseline):
- The Kijun Sen is a core component of the Ichimoku indicator, representing the midpoint of the highest high and lowest low over a specified period. It serves as an adaptive moving average that tracks market equilibrium. In this script, the Kijun Sen is applied twice:
- The primary Kijun Sen is used to generate standard deviation-weighted upper and lower bands.
- A normalized Kijun Sen provides an additional filtering layer to refine entry and exit signals.

2. Weighted Standard Deviation (SD) Bands:
- The primary Kijun Sen calculates dynamic SD bands to adjust to market conditions. A standard deviation (SD) of the Kijun Sen is calculated and adjusted by weighting factors.
- These upper and lower bands create a volatility-adjusted envelope around the Kijun Sen, defining potential overbought and oversold levels, useful for identifying trend changes and entry/exit points.

3. Signal Generation:
- Primary Signals: These are derived from the relationship between the current price and the upper and lower SD-weighted Kijun Sen bands.
- Normalized Signals : These signals use a "normalized" Kijun Sen by dividing the negative Kijun Sen value by the closing price and adjusting it by its standard deviation.
- Final Combined Signals: Long and Short signals are generated only when both primary and normalized conditions align, enhancing signal reliability by adding a layer of confirmation.

4. Visual Customization:
- The indicator offers several color modes (`ColMode`) for customizable display options, allowing users to choose different color schemes for bullish and bearish signals based on personal preference or charting style.

Utilities and Benefits of SD Kijun

1. Adaptive Trend Detection with Kijun Sen:
- By using the Kijun Sen combined with weighted SD bands, this indicator helps identify trends and potential reversals while adapting to price volatility.

2. Dual Confirmation for Enhanced Signal Reliability:
- The indicator’s requirement for both primary and normalized Kijun Sen signals to align before producing a trade signal provides a layer of confirmation, reducing the likelihood of false signals caused by short-term price fluctuations.

3. Customizable Sensitivity:
- Inputs such as `Kijun Length`, `Normalized Kijun Length`, `SD Length`, and the `Weight` parameters allow traders to tailor the indicator's sensitivity. This flexibility makes it suitable for various trading styles, whether for shorter time frames or longer-term trend analysis.

4. Clear Visual Cues for Market Direction:
- The indicator’s color-coded signals help traders quickly interpret market conditions, highlighting potential bullish or bearish signals on the chart for easy decision-making.

5. Versatile Application Across Market Conditions:
- The SD-weighted Kijun Sen bands make this indicator suitable for trending markets to capture larger moves and volatile conditions, where the adaptive SD bands can signal potential reversals.


The "SD Kijun | SANDIB" indicator combines the Kijun Sen with adaptive standard deviation weighting to create a versatile trend-following tool. The dual-layer filtering mechanism ensures that signals are more reliable by requiring alignment between the primary and normalized Kijun Sen-based conditions. This indicator is particularly useful for traders who want a flexible tool that adapts to volatility, helping to capture trends while reducing noise and false signals.

11 de nov. de 2024

Notas de Lançamento

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