Ichimoku Cloud

//@version=6
strategy("Ichimoku Cloud Strategy", shorttitle="ICS", overlay=true, initial_capital=1000000, default_qty_type=strategy.percent_of_equity, default_qty_value=100, currency=currency.USD)

// ==========================================
// 🔹 INPUTS
// ==========================================
group_ichi = "Ichimoku Settings"
tenkanLen = input.int(9, "Tenkan-sen Length", minval=1, group=group_ichi)
kijunLen  = input.int(26, "Kijun-sen Length", minval=1, group=group_ichi)
spanBLen  = input.int(52, "Senkou Span B Length", minval=1, group=group_ichi)
offset    = input.int(26, "Displacement", minval=1, group=group_ichi)

group_risk = "Risk Management"
useATR      = input.bool(true, "Use ATR Trailing Stop?", group=group_risk)
atrLen      = input.int(14, "ATR Length", group=group_risk)
atrMult     = input.float(2.0, "ATR Multiplier", step=0.1, group=group_risk)

// ==========================================
// 🔹 CALCULATIONS
// ==========================================
// Helper function for Donchian Channel (High/Low Avg)
donchian(len) => math.avg(ta.lowest(len), ta.highest(len))

// Standard Ichimoku Lines
tenkan = donchian(tenkanLen)
kijun  = donchian(kijunLen)
spanA  = math.avg(tenkan, kijun)
spanB  = donchian(spanBLen)

// Cloud (Kumo) Calculation
// In Pine Script, we project these lines forward using `offset` in the plot, 
// but for strategy logic, we need the values that are physically *at* the current bar.
// The "Future" cloud values (26 bars ahead) are stored in variables today for validation.
futureSpanA = spanA
futureSpanB = spanB

// The "Current" cloud values (for checking if price is above/below Kumo)
// are the Span A/B values calculated 26 bars ago.
currentSpanA = spanA[offset]
currentSpanB = spanB[offset]

// Chikou Span (Lagging)
// For logic: Compare current Close to the Close of 26 bars ago.
chikouValue = close
pastPrice   = close[offset]

// ==========================================
// 🔹 LOGIC & CONDITIONS
// ==========================================

// 1. Trend Direction (Price vs Cloud)
bullishCloud = close > math.max(currentSpanA, currentSpanB)
bearishCloud = close < math.min(currentSpanA, currentSpanB)

// 2. TK Cross (Momentum)
bullishTK = ta.crossover(tenkan, kijun)
bearishTK = ta.crossunder(tenkan, kijun)

// 3. Chikou Confirmation (Momentum Persistence)
// Bullish: Current price (lagging span) is higher than price 26 bars ago
bullishChikou = chikouValue > pastPrice
// Bearish: Current price (lagging span) is lower than price 26 bars ago
bearishChikou = chikouValue < pastPrice

// 4. Future Cloud Validation (Optional but recommended)
// Ensures the cloud forming ahead is in the direction of the trade
bullishFuture = futureSpanA > futureSpanB
bearishFuture = futureSpanA < futureSpanB

// --- ENTRY SIGNALS ---
// We use a "Strong" signal approach: All conditions must be met.
longCondition  = bullishCloud and bullishTK and bullishChikou and bullishFuture
shortCondition = bearishCloud and bearishTK and bearishChikou and bearishFuture

// ==========================================
// 🔹 RISK MANAGEMENT (ATR TRAILING)
// ==========================================
// Calculate ATR
atr = ta.atr(atrLen)

// Initialize Trailing Stop variables using `var` (v6 requirement for persistent variables)
var float longStopPrice  = na
var float shortStopPrice = na

// Update Trailing Stops
if (strategy.position_size > 0)
    // For Longs: Stop moves UP only
    newStop = close - (atr * atrMult)
    longStopPrice := na(longStopPrice) ? newStop : math.max(longStopPrice, newStop)
else
    longStopPrice := na

if (strategy.position_size < 0)
    // For Shorts: Stop moves DOWN only
    newStop = close + (atr * atrMult)
    shortStopPrice := na(shortStopPrice) ? newStop : math.min(shortStopPrice, newStop)
else
    shortStopPrice := na

// ==========================================
// 🔹 STRATEGY EXECUTION
// ==========================================

if longCondition
    strategy.entry("Long", strategy.long)
    longStopPrice := close - (atr * atrMult) // Reset stop on new entry

if shortCondition
    strategy.entry("Short", strategy.short)
    shortStopPrice := close + (atr * atrMult) // Reset stop on new entry

// Exit Logic
if (strategy.position_size > 0)
    if useATR
        strategy.exit("Exit Long", "Long", stop=longStopPrice)
    // Fail-safe exit: If Price drops below Cloud
    if close < math.min(currentSpanA, currentSpanB)
        strategy.close("Long", comment="Below Cloud")

if (strategy.position_size < 0)
    if useATR
        strategy.exit("Exit Short", "Short", stop=shortStopPrice)
    // Fail-safe exit: If Price breaks above Cloud
    if close > math.max(currentSpanA, currentSpanB)
        strategy.close("Short", comment="Above Cloud")

// ==========================================
// 🔹 VISUALIZATION
// ==========================================
// Plot Tenkan and Kijun
plot(tenkan, color=color.new(#0496ff, 0), title="Tenkan-sen")
plot(kijun, color=color.new(#991515, 0), title="Kijun-sen")

// Plot Cloud (Projected forward)
p1 = plot(spanA, offset=offset, color=color.new(#009688, 90), title="Span A")
p2 = plot(spanB, offset=offset, color=color.new(#f44336, 90), title="Span B")
fill(p1, p2, color = spanA > spanB ? color.new(#009688, 85) : color.new(#f44336, 85), title="Kumo Cloud")

// Plot Trailing Stops
plot(strategy.position_size > 0 ? longStopPrice : na, style=plot.style_linebr, color=color.red, linewidth=2, title="Long Trailing SL")
plot(strategy.position_size < 0 ? shortStopPrice : na, style=plot.style_linebr, color=color.red, linewidth=2, title="Short Trailing SL")