Custom Kumo Cloud with RavaAcademy

# Custom Kumo Cloud with RavaAcademy

📜 Summary

This script introduces a modified version of the traditional Ichimoku Kumo Cloud. Instead of using the standard formula of (highest high + lowest low) / 2, this indicator calculates its main components—Tenkan-sen, Kijun-sen, and Senkou Span B—using a custom volatility-based averaging mechanism. This mechanism is built on the Average True Range (ATR), making the cloud more responsive to market volatility. The result is a dynamic support and resistance tool that adapts to the current state of the market.

This indicator is designed for traders who appreciate the principles of the Ichimoku system but are looking for a more adaptive and volatility-aware tool for their technical analysis.

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✨ Key Features

* **ATR-Based Calculations:** All major lines (Tenkan, Kijun, Senkou B) are calculated using a custom function that incorporates ATR. This allows the cloud to expand during high-volatility periods and contract during low-volatility periods.
* **Fully Customizable:** Users can adjust the period and ATR multiplier for each component of the cloud, allowing for fine-tuning to suit different assets and timeframes.
* **Standard Kumo Cloud Logic:** The cloud (Kumo) is formed between Senkou Span A and Senkou Span B, and it changes color based on their crossover, providing clear bullish or bearish signals.
* **Clean Visuals:** The indicator is plotted directly on the price chart (overlay) and can be easily toggled on or off from the settings.

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🚀 How to Use

The fundamental principles of trading with this custom cloud are similar to the traditional Ichimoku Kumo Cloud.

* **Bullish Signal:**
* The price is trading above the cloud.
* The cloud is green (Senkou Span A is above Senkou Span B).
* The cloud acts as a dynamic support level.

* **Bearish Signal:**
* The price is trading below the cloud.
* The cloud is red (Senkou Span A is below Senkou Span B).
* The cloud acts as a dynamic resistance level.

* **Consolidation / Ranging Market:**
* The price is trading inside the cloud, which often indicates market indecision or a period of consolidation.

Because the calculations are based on volatility, a widening cloud can signal increasing market volatility, while a narrowing cloud suggests decreasing volatility.

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⚙️ Settings

* **Show Kumo Cloud:** A simple checkbox to turn the visibility of the cloud on or off.
* **Tenkan Period & ATR Multiplier:** Controls the sensitivity of the fastest line (Tenkan). A smaller period or multiplier makes it more responsive.
* **Kijun Period & ATR Multiplier:** Controls the baseline (Kijun). This is typically a medium-term component.
* **Senkou Span B Period & ATR Multiplier:** Controls the slowest and most significant cloud boundary (Senkou B), which forms the foundation of long-term support/resistance.

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⚠️ Disclaimer

This is a custom indicator and differs from the standard Ichimoku Kinko Hyo. Its signals should be used in conjunction with other forms of analysis and proper risk management. This tool is for educational and analytical purposes and does not constitute financial advice.