// Plots Color Of Heikin-Ashi Bars while Viewing Candlestics or Bars //Works on Candlesticks and OHLC Bars - Does now work on Heikin-Ashi bars - But I have verified its accuracy // Created By User ChrisMoody 1-30-2014 with help from Alex in Tech Support study(title = "CM_Heikin-Ashi_Candlesticks_V1", shorttitle="CM_Heik-Candles",overlay=true) haclose = ((open + high + low + close)/4)//[smoothing] haopen = na(haopen) ? (open + close)/2 : (haopen + haclose) / 2 heikUpColor() => haclose > haopen heikDownColor() => haclose <= haopen barcolor(heikUpColor() ? aqua: heikDownColor() ? red : na)
When I only traded Pivot levels as the system I used for several years I used this Indicator for entry. for example if price was falling to a pivot level the bars would be red. Once it touched the pivot level and started to move higher I would enter when the bars changed colors showing upside momentum (I use cyan or aqua as my upside color). There is more to the methodology than that but that's the basics.