Magic of NinjaTrader 8 Heikin-Ashi candle and RSI
Are you a fan of the NinjaTrader 8 Heikin-Ashi candle, or RSI, or both?
Heiken-Ashi & RSI Blend is a modern oscillator that combines the power of these 2 famous classic trading tools: The Heikin-Ashi candle for NinjaTrader 8 and RSI indicator.
- The Heikin-Ashi candle: The best & well-known smoothing formula that provides reliable noise reduction in the NinjaTrader 8 platform.
- RSI: Good in catching overbought/oversold regions, which signals potential price reversals. It's old but gold.
This unprecedented combination produces an unbelievable modern indicator. It's "modern" because this is the first-ever Heikin-Ashi candle & RSI combination for NinjaTrader 8.
The indicator was first introduced by JayRogers on TradingView as a "science" experiment. ninZa.co used the core formula and then tremendously remade this indicator by adding so many enhancements & improvements.
In our version, we call the candle where the Heiken-Ashi trend switches from bullish to bearish or vice versa a "turning point". Because there are a lot of turning points and many of them are noise, we don't take every turning point as a signal.Instead, we compare 2 consecutive turning points of the same side to filter out low-quality signals. This filtration is controlled by "Signal Mode" with which you can choose how signals are generated:
- Strengthening Turning Point: 2 consecutive bearish turning points will generate a bearish signal if the Heiken-Ashi Close value of the later point is larger or equal to the Heiken-Ashi Close value of the previous point. Reversely, 2 consecutive bullish turning points will generate a bullish signal if the Heiken-Ashi Close value of the later point is smaller or equal to the Heiken-Ashi Close value of the previous point.
- Weakening Turning Point: 2 consecutive bearish turning points will generate a bearish signal if the Heiken-Ashi Close value of the later point is smaller or equal to the Heiken-Ashi Close value of the previous point. Reversely, 2 consecutive bullish turning points will generate a bullish signal if the Heiken-Ashi Close value of the later point is larger or equal to the Heiken-Ashi Close value of the previous point.
The result is a modern oscillator that catches tops & bottoms extremely well. Especially, in a sideways market, this exceptional indicator recognizes where the price reverses to a very high degree of accuracy!
For your information, we also developed another similar indicator: Heiken-Ashi & MFI Blend. It's an amazing combination of the NinjaTrader 8 Heikin-Ashi candle and MFI (Money Flow Index).
Key features:
- Plot Heiken-Ashi bars of RSI in a separate panel
- Allow selecting between 2 signal modes: Strengthening Turning Point or Weakening Turning Point
- Allow configuring "Strict Mode" (if enabled, only peak turning points happening in overbought/oversold regions are accepted)
- Allow configuring the weight of candle Open in Heiken-Ashi calculation
- Allow configuring RSI period
- Allow smoothing RSI with user-defined period
- Highlight overbought & oversold regions
- Draw the connection line between 2 consecutive turning points that generate a signal
- Allow adjusting Heiken-Ashi bar colors
- Print markers on signal generated
- Trigger alerts on signal generated
- Be NinjaScript ready for advanced usage, only restricted by your imagination
- Expose dedicated NinjaScript signals
Dedicated NinjaScript signals:
- Signal_TrendHARSI: 1 = uptrend HARSI, -1 = downtrend HARSI
- Signal_Trade: 1 = bullish, -1 = bearish, 0 = no signal
- Signal_State: 1 = overbought, -1 = oversold, 0 = middle
- 21 Jul 2024 - Some minor code revision was made.
- 20 Jul 2022 - Some minor code revision was made.
- 18 May 2022 - The indicator was released (build new).
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