I_Heikin Ashi Candle

When apply a strategy to Heikin Ashi Candle chart (HA candle), the strategy will use the open/close/high/low values of the Heikin Ashi candle to calculate the Profit and Loss, hence also affecting the Percent Profitable, Profit Factor, etc., often resulting a unrealistic high Percent Profitable and Profit Factor, which is misleading. But if you want to use the HA candle's values to calculate your indicator / strategy, but pass the normal candle's open/close/high/low values to the strategy to calculate the Profit / Loss, you can do this:

1) set up the main chart to be a normal candle chart
2) use this indicator script to plot a secondary window with indicator looks exactly like a HA-chart
3) to use the HA-candle's open/close/high/low value to calculate whatever indicator you want (you may need to create a separate script if you want to plot this indicator in a separate indicator window)
Remove from Favorite Scripts Add to Favorite Scripts
// Note:
//   if you only want to see the Heikin Ashi Candle but not the normal Candle,
//   change the overlay option to overlay=true, then hide the normal Candle
study("I_Heikin Ashi Candle", shorttitle="I_HA Candle", overlay=false)

// --------------- Calculating HA Candle's values
//  -- you can use either one of the methods below, they give the same values

//   Method 1 - calculate the HA candle's value by formula
haclose = (open + high + low + close) / 4
haopen = na(haopen[1]) ? (open + close) / 2 : (haopen[1] + haclose[1]) / 2
hahigh = max(high, max(haopen, haclose))
halow = min(low, min(haopen, haclose))

//   Method 2 - calculate the HA candle's value by pine script function heikinashi()
// haclose = security(heikinashi(tickerid), period, close)
// haopen = security(heikinashi(tickerid), period, open)
// hahigh = security(heikinashi(tickerid), period, high)
// halow = security(heikinashi(tickerid), period, low)

// --------------- Using HA Candle's values to define indicators

// then use the haclose, haopen, hahigh, halow to calculate whatever indicators you want:
// e.g.

// 1. stochastic
// k = sma(stoch(haclose, hahigh, halow, 14), 3)
// d = sma(k, 3)

// 2. sma
// sma14 = sma(haclose, 14)

// 3. ema
// ema14 = ema(haclose, 14)

// --------------- Plotting
plotcandle(haopen, hahigh, halow, haclose, title='Heikin-Ashi', color=(haopen < haclose) ? green : red, wickcolor=gray)
// END
Is there any benefit to using Method 2?
samtsui kakola
Both methods give the same value. Not sure what benefit you are looking for......
Ideas Scripts Chart
United States
United Kingdom
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out