Optimized for long-term trading, HACOLT shows three levels: -1, 0 and 1. These levels suggest "an open short position", "no open position", and "an open long position", respectively. Passing from a certain level to another is viewed as a trading signal:
- Rising from -1 or 0 to 1 suggests a Long Entry and Short exit;
- Falling from 1 to 0 or -1 suggests a Long Exit;
- Falling from 1 or 0 to -1 indicates a Short Entry.
Fits in nicely with any trading setup as a confirmation indicator
List of my other indicators:
- GDoc: https://docs.google.com/document/d/15AGCufJZ8CIUvwFJ9W-IKns88gkWOKBCvByMEvm5MLo/edit?usp=sharing
// // @author LazyBear // List of all my indicators: // https://docs.google.com/document/d/15AGCufJZ8CIUvwFJ9W-IKns88gkWOKBCvByMEvm5MLo/edit?usp=sharing // study("Vervoort LongTerm Heiken-Ashi Candlestick Oscillator [LazyBear]", shorttitle="HACOLT_LB") length = input(defval=55, title="TEMA Period") emaLength = input(defval=60, title="EMA Period") candleSizeFactor = input(defval=1.1, title="Candle size factor") overlayMode=input(false) calc_tema(src, length) => ema1 = ema(src, length) ema2 = ema(ema1, length) ema3 = ema(ema2, length) 3 * (ema1 - ema2) + ema3 haOpen = nz((haOpen + ohlc4) / 2, ohlc4) haClose = (haOpen + max(high, haOpen) + min(low, haOpen) + ohlc4) / 4 thaClose = calc_tema(haClose, length) thl2 = calc_tema(hl2, length) haCloseSmooth = 2 * thaClose - calc_tema(thaClose, length) hl2Smooth = 2 * thl2 - calc_tema(thl2, length) shortCandle = abs(close - open) < ((high - low) * candleSizeFactor) keepn1 = ((haClose >= haOpen) and (haClose >= haOpen)) or (close >= haClose) or (high > high) or (low > low) or (hl2Smooth >= haCloseSmooth) keepall1 = keepn1 or (keepn1 and (close >= open) or (close >= close)) keep13 = shortCandle and (high >= low) utr = keepall1 or (keepall1 and keep13) keepn2 = (haClose < haOpen) and (haClose < haOpen) or (hl2Smooth < haCloseSmooth) keep23 = shortCandle and (low <= high) keepall2 = keepn2 or (keepn2 and (close < open) or (close < close)) dtr = keepall2 or (keepall2 and keep23) upw = dtr == 0 and dtr and utr dnw = utr == 0 and utr and dtr upwWithOffset = upw != dnw ? upw : nz(upwWithOffset) buySig = upw or (not dnw and (na(upwWithOffset) ? 0 : upwWithOffset)) ltSellSig = close < ema(close, emaLength) neutralSig = buySig or (ltSellSig ? 0 : nz(neutralSig)) hacolt = buySig ? 1 : neutralSig ? 0 : -1 plot(not overlayMode ? hacolt : na, style=columns, color=hacolt>0?green:hacolt<0?red:blue, title="HACOLT") barcolor(overlayMode?hacolt>0?green:hacolt<0?red:blue:na)
When LazyBears bars are red...and you get a bottoming signal...you only expect a small move up providing you a entry to go with the overall trend...which his Candles clearly show.
Same if his bars are green and you topping signal.
Those provide good entry levels to get in trade.
What your looking for is a Bottoming Signal when his bars are Green....or a topping signal when his bars are red...That == A Great Entry To Go With Trend.
Example...at the right of the chart you get 2 topping signals when the bars are green....You should expect a small pullback. But when you got Bottoming Signal with Green Bars Great Entry for potentially Trend Reversal...Price Action was showing a Higher Low for the first time in a While on the Chart.
Example 2 - The lowest Red Candles you got a bottoming signal...Nice entry for a counter trend move....however while you were in that trade the bars turned Green...Then you got a bottoming signal...Great place to Add to Position. Therefore you could have caught the bottom of a Trend Reversal...
It's all how you read the charts...Remember...My Indicators...LazyBears Indicators...just tools to help visually. Price Action tells All...Learn How to read Price Action First...then Indicators filter out Higher probability moves...
Overall, after testing more indicators the last days I'm still convinced the shown "lag" is a downside of the 'Heikin Ashi Candles Oscillator Long Term' indicator and not an advantage. But I'm not going to start a debate here to defend my opinion. Whoever wants to treat this "lag" disadvantage of this indicator as a helpful feature can feel free to do so :)
I tried to copy your code into a strategy code version 3 but have undeclared identifier error for HaOpen, HaClose, upwWithOffset and neturalSig.
I have tried to use the following and managed to solve it for HaOpen, HaClose and neutralSig. However, I am still getting propble with upwWithOffset stating it is bool series.
HaOpen = 0.0
HaOpen := (your definition)
If it is not too much trouble, can you advise how to change your code so that it can use with version 3?