haDelta (developed by Dan Valcu) — Indicator by Kumowizard

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.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

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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)