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 is used (similar to indicator).
The crossovers of haDelta and (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 (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.
// 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 ? red : lime) : (s2 >= 0 ? (s2 > s2 ? lime : red) : na) plot(s2, color=c_color, style=circles, linewidth=2) h0 = hline(0)
But to understand the whole concept, you must study Dan Valcu's work and read his book.
Btw he is just publishing a second Heikin-Ashi book, which will also contain the haOscillator indicator, besides may other useful information!
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?
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!
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,