haDelta (developed by Dan Valcu)

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haDelta is a simple indicator originally developed and published by Mr. Dan Valcu.
The indicator is used quantify Heikin Ashi candles, measures the difference between HA close and HA open.
haDelta is sensitive indicator, measures the height of the candle body, for smoothing a 3 period SMA is used (similar to Qstick indicator).
The crossovers of haDelta and SMA (3) can give important early signals and confirmation together with Heiken Ashi candle patterns about possible trend reversals or trend exhaustion.
The zero line is also very important. Whenever haDelta and/or its SMA (3) crosses over the zero line, it gives further signal of possible strength of the trend.
Please note that haDelta is not for mechanic trading alone, but for use in conjunction with Heikin Ashi rules.
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// written by Kumowizard
// special thanks to Mr. Dan Valcu, original developer of haDelta>SMA(3)
// thanks for LazyBear for writing Qstick script previously
// The indicator measures difference between Heikin Ashi close and open
// thus quantifies Heikin Ashi candles, to get earlier signals
// haDelta smoothed by applying 3 period SMA
// For further interpretation and use please check Mr. Dan Valcu's work

study(title="haDelta by Dan Valcu", shorttitle="haDelta+SMA")
delta = close - open
plot(delta, color=black)
s2=sma(delta, 3)
plot(s2, color = red)
plot(s2, color=red, style=area)
c_color=s2 < 0 ? (s2 < s2[1] ? red : lime) : (s2 >= 0 ? (s2 > s2[1] ? lime : red) : na)
plot(s2, color=c_color, style=circles, linewidth=2)
h0 = hline(0)
According to the readings if price is lower but the hadelta is crossing up then it is a change of trend sign?
Basically you always have to look at the HA candles themselves. Originally a slowing of trend comes when current HA candle rints a doji like body, or a smaller body within the rage of the previous candle's body, or if the body changes colour. Due to averaging HA candles are lagging. Mr. Valcu developed haDelta for this reason, to be able to get early signals of trend exhaustion or possible reversals.
What you see now is a change in HA candle colours, three already green, but their bodies were still small with both upper and lower wicks. However the haDelta is above its SMA and both crossed back above 0. So the chance for a short term upward correction is increasing. Now the recent candle seems like one with no lower wick, which means trend is down, so twe can expect more up in short term.
Recent setup is similar to the one on 20-25/November/2014, so still can fail! For now it signals short covering and losing of bearish momentum, maybe with increasing probability of a swing higher to/above Kijun Sen.
If anyone wants to trade counter trend, he/she can set up the trade on lower (4 Hrs) time frame. There we may also have a bullish Kumo breakout soon, which can send Price to 54-57 area. If you swing trade against the major trend, obviously you have to use a reasonable stop
Hi Kumowizard !

Thanks for this very useful script.

Best Regards,
You are welcome, hope it will help you a lot. But in fact we have to say thanks to Mr. Dan Valcu, expert of Heikin Ashi, who initially developed this simple system! (www.educofin.com). I just wrote the script, which was some good brain excersise at my age :-)
+1 Reply
Great job on haDelta+SMA, Kumowizard! I have begun trading with Heikin-Ashi candles, and having this indicator is very useful and a big help.

I'm reading Dan Valcu's book "Heikin-Ashi: How to Trade Without Candlestick Patterns," where he writes about this indicator. I was really glad to find that you had created it for TradingView using PineEditor.

I also use MultiCharts, and have been searching unsuccessfully for haDelta+SMA written in TradeStation's EasyLanguage (which MultiCharts can usually read) or in MultiCharts' own scripting language, PowerLanguage.

Question: do you know if this indicator as you have created it in PineEditor already exists in either EasyLanguage or PowerLanguage?

Many thanks for your work on this.
I don't know if haDelta exists in other programming languages or not, but if they don't, I think it is not so difficult to write a script. This indicator is very simple as you see. You can find out how to write it under any codes. You see I could do it myself too here, and believe me, I am not an expert in programming :-)

I am also happy to hear you are reading Dan Valcu's book. That was a game changer for me. I think that's one of the best tech books I've ever read. He is a good man with his mission to help people trading and investing, if you have questions regarding Heikin Ashi, you can always contact him via e-mail too.
One of my favorites.
You are welcome! Feel free to use, and if you have any question, you can always ask me.
Ladies and Gentlemen, I have just posted the Script of haOscillator. Feel free to check, add and use in your system together with haDelta. Not much difference between the two, just some further smoothening of the Heikin-Ashi quantification tool.
Kumowizard PRO Kumowizard
I am sorry to delete it first, but I still have to double check something in the script.
lemerou Kumowizard
@Kumowizard, Have you released your haOscillator yet ? I can't find it. Thanks !
@lemerou, Dan Valcu will release it soon! In his new book it will be published within weeks. Shortly after the book is out, the script for real haOscillator will be available too.
lemerou Kumowizard
@Kumowizard, I see. Are you working with him ?
@lemerou, nope. we are all independent. I just respect his knowledge and work a lot. I have found my path to walk in Heikin-Ashi.
hi thanks but i got an Error : No algo source file was found in "New Indicator (8).csproj".

Kumowizard PRO kam.pooni8
Frankly speaking I don't know why you experience this problem...
Maybe you should contact tradingview admin.
Best indicator ever! Period!
@pdwinpdx, u might really like to check out Dan Valcu's site: http://www.educofin.com
Btw he is just publishing a second Heikin-Ashi book, which will also contain the haOscillator indicator, besides may other useful information!
JUMPSOLID Kumowizard
Hello Sir, your knowledge really impresses me :)
I am very new to forex, I try to combine ichimoku with other indicators... I have Heiken Ashi but there are no oscillators on the platform that I use (fxpro) any idea's how i can work around that?
Respectfully, G.

@JUMPSOLID, I had/have the same problem :-). The platform (bank) I trade with is excellent in order management, quick and has access to literally all markets all instruments. However their charting features are weak.

This was one reason I started to use Tradingview.com . This charting platform and also the social community part is an amazing thing and it's continuously improving.
So you can do the chart analysis work here, and the trading in your platform.

If you read about Ichimoku, you must know it is a complex and complete system on its own, no no need to add any other indicators to it. However if you combine it with Heikin-Ashi, the other amazing japanese technique, then you'll have a real samurai on your side!

I highly recommend you to read and lear about Heikin-Ashi from Dan Valcu's book! Gonand check http://www.educofin.com. It has changed my mind and open my eyes to a new dimension, after 17 years of trading experience! I wish I had this knowledge in the past! ;-)

I wish you good learning, and good .... ha, you thought "luck" right? :-). But my friends luck has nothing to do with in trading! For pro traders it's not a casino, its a mathematics contest!
Instead of luck, I wish you persistence, and all the best!

JUMPSOLID Kumowizard
Hello David, I truly thank you ..

I will certainly get into that website and learn about the Heiken Ashi.

Actually at the moment I use a demo account of FXPRO, whereby I use the Ichimoku with Raghee's candles (probably a derivative of the heiken ashi)

Thank you in advance,

very good indicator
Kumowizard PRO molugururaju
@molugururaju, it is rather a quantification tool than an indicator. It helps you spot changes in Heikin-Ashi momentum earlier, before the lagging candles show it.
But to understand the whole concept, you must study Dan Valcu's work and read his book.
molugururaju Kumowizard
@Kumowizard, thanks for your reply and comments, appreciate the same.
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