Allows for Smoothing with different values for Up and Down Trend.
Ability to Plot to see Trend Filter
//Created by Chrismoody on 7/22/2014 By Request for user lucalucious //Modified Heikinashi with EMA Filter... //Choice To Plot EMA Trend Is Based Off Of study(title = "CM_Modified_Heik_Trend_Bars", shorttitle="CM_TrendBars",overlay=true) note = input(false, title="Lower Numbers = More Sensitive to Price Change...Higher Numbers = Less Sensitive") uema = input(34, minval=1, maxval=50, title="EMA UpTrend") dema = input(34, minval=1, maxval=50, title="EMA DownTrend") shema = input(false, title="Show EMA Trend is Based On?") haclose = (open + high + low + close)/4 haopen = na(haopen) ? (open + close)/2 : (haopen + haclose) / 2 upEma = ema(haclose, uema) downEma = ema(haopen, dema) emaAvg = (upEma + downEma)/2 heikUpColor() => hlc3 >= emaAvg heikDownColor() => hlc3 < emaAvg col = hlc3 >= emaAvg ? lime : hlc3 < emaAvg ? red : white barcolor(heikUpColor() ? lime: heikDownColor() ? red : na) plot(shema and emaAvg ? emaAvg : na, title="EMA UpTrend", style=line, linewidth=3, color=col)
First off.. TV (and us) are fortunate to have guys like you around here.. :)
Entering and exiting trades based on HA alone is difficult as it doesn't show the actual price bars. This script hugely resolves that issue.
I have slightly modified your script to add:
1. Smoothing of EMA that is displayed on the chart
2. Detect additionally that there are no down wicks (up wicks for short) on the HA bars.
Makes it even more effective!
- http://i.imgur.com/NbZRJBd.png (Amazon, weekly chart)
That's a screen shot of Amazon weekly. The top blue arrow points to the 4-week EMA that your indicator bases the bar color on. It's a 4 week EMA (up & down). The lower blue arrow points to a standard 4-week EMA plotted on price (blue line).
As of the close of this week (last week in Oct. 2014), price has closed above the standard 4-week EMA, but not above the 4-week EMA that is plotted by your indicator. Which is why I was wondering if there was some kind of smoothing or if it was based on the slope of the EMA or if the calculations were based on something other than the close of price because it isn't matching up to a generic, out-of-the-box EMA.
Any thoughts would be great. Thanks.
If you keep the defaults at 34...and check the last checkbox to show EMA.... and you plot a regular 34EMA as another indicator....Then the plots are almost identical. The difference is the EMA's I use are based on the True Heikin-Ashi Close. Hence the title....Modified Heikin-Ashi. Whereas the EMA from the the indicators you plot is based off the Close...Not the Heikin-Ashi Formula.
Excellent. That makes sense. Appreciate the reply and info. Thanks.