Heiken Ashi Algo v6

8 Feb

The Heiken Ashi Algo Oscillator v6, introduces a refined approach to technical analysis applicable across various markets. Central to this algorithm is the integration of the Relative Strength Index #RSI, a staple indicator renowned for its effectiveness in measuring momentum.

The RSI - Tried and True:
By incorporating the #RSI, traders gain valuable insights into the speed and strength of price movements, aiding in the identification of potential #trend #reversals and #continuations.

Why Heiken Ashi Candles:
Additionally, the utilization of #Heiken Ashi candles within this algorithm offers a smoother representation of price action, reducing noise and enhancing clarity in trend analysis. This feature is particularly advantageous in volatile markets, where traditional candlestick patterns may produce false signals. By employing Heiken #Ashi candles, traders can more accurately identify underlying trends and make informed decisions based on reliable price data.

Combining RSI and Heiken Ashi:
The synergy between the RSI and Heiken Ashi candles in the Heiken Ashi Algo Oscillator v6 provides traders with a comprehensive perspective on both momentum and trend direction. This combination allows for a nuanced analysis of market dynamics, enabling traders to navigate various market conditions with greater confidence.

Heiken Ashi Candle Sizes:
The size of the Heiken Ashi candles serves as a visual indicator of the distance the RSI has moved between closing prices, offering additional insights into momentum shifts.

Not your average Heiken Ashi Candles:
Ive taken the time to do some serious custom coding for these particular Heiken Ashi Candles.
They do NOT color as the normal ones do. There is a setting in the inputs tab of the indicator that allows you to color them according to my secret code where its looking for Breaks of Structure on lower timeframes based on Heiken Ashi Candle calculations.
Turning on this feature gives you a more promising array of candle colors telling you about false or positive breakouts and trends.

Why choose this tool:
CoffeeShopCrypto's Heiken Ashi Algo Oscillator v6 offers a balanced and effective tool for traders across different markets. By leveraging the power of the RSI and Heiken Ashi candles, traders can enhance their decision-making process, identify trading opportunities with greater precision, and ultimately improve their overall trading performance.

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Inflow / Outflow (accumulation and distribution) Ribbon

In trading we know liquidity means volume and volume is orders. This ribbon shows you when orders are entering, exiting, filling or flat in the market.
The Liquidity Ribbon is a visual representation of whats happening with accumulation and distribution in the market.
It acts as a dynamic area of support and resistance for the RSI (momentum).
Once the RSI breaks above or below the full area of the ribbon, you have an overturned short term market.
Breaking this area isn't easy because of the one sided thick line known as the PoC line or Point of Control Line.
This line changes between a rising and falling color to tell you what side of the market has the most resistance or support.

Custom HA candles

The common way for HA candles to be colors is green for bullish and red for bearish.
These candles color differently according to market dynamics vs how the current candle closes.
This is helpful to keep you from taking longs or shorts when the momentum just doesn't have the move.

How it all works together: Taking entries and failed breakouts.
In the image below (left to right) you can see the following take place:


Short Entry:
HA Candles push down through the ribbon breaking below its low side (Support Ribbon Broken)
Following this the RSI RANGE is broken to the down side.
This is a good setup for a short breakout

Retrace to false breakout:
After this price retraces and so does momentum.
HA Candles attempt to but fail to break through the top of the ribbon and push back down [Failed Breakout]. This is a false breakout.

Bullish Divergence to Long Entry:
The Heiken Ashi Algo forms a bullish divergence and HA candles push back up into the ribbon. Without a change in candle structure the RSI breaks the top of the ribbon where the control line sits as well as breaking through the top of the RANGE area [Support Ribbon broken] and [Range Broken]
This is a promising setup for a long trade.

Rally Base Rally: (into secondary long trade)
As price is rising, it retraces until HA candles are within the RANGE. No candle closes or has a low below the RSI midline.
HA Candles are forming a consolidation. After consolidation the RSI breaks out the top of the ribbon and the top of the RANGE allowing a secondary long entry.

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Im not gonna lie. Ive written a lot of tutorials but this one was probably the most exciting to describe.
If you have any questions please do ask below.

9 Feb

Catatan Rilis

I received many requests about the ability to augment the color scheme even further. This update allows you to do more color changes noted below:

1. you have a check box to either show the ranging background or not
2. you can change the color and transparency of the RSI ranging area which is the area known as -10 through +10
3. You can change the color and amount of color which is shading the bull side of the oscillator known as the 0 through 30 area
4. You can change the color and amount of color which is shading the bear side of the oscillator known as the -30 through 0 area
5. You can now edit the full color of the RSI line itself
6. You can edit the line width or thickness of the RSI to make it more visible.

22 Mar

Catatan Rilis

Update to RSI Moving Average
User can now set:
RSI MA Width
RSI MA Color