Registered User
Joined: 10/7/2004
Posts: 794
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The reason the Heikin Ashi tends to be smoother is because instead of using a simple low and high of the session to calculate individual candles, the Heikin Ashi takes the prices per bar and averages them to create a "smoother" session. This is key because the currency markets tend to offer traders more volatility and market noise in the price than other markets. Here is how each candle is constructed:
• Close = (Open Price + High + Low +Close) / 4
• Open = (Open Price of the previous bar + Close Price of the previous bar) / 2
• High = [Maximum value of the (High, Open, Close)]
• Low = [Minimum value of the (Low, Open, Close)]
By plugging formulas into each individual session to construct consecutive candles, the chart continues to be reflective of the underlying price action, isolating the price and excluding currency market volatility and noise. The resulting picture gives the trader a more visually appealing perspective, and one that can help in identifying the overall trend.
Is there a way of writing a custom formulae for the above?
Thank you in advance!
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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It is possible to construct these as Personal Criteria Formulas or Custom Indicators, but it is not possible to use the results to construct Candlesticks in TeleChart.
Close:
(O + H + L + C) / 4
Open:
(O1 + C1) / 2
High:
Using current actual Open and Close:
(H + O + ABS(H - O) + 2 * C + ABS(H + O + ABS(H - O) - 2 * C)) / 4
Using calculated Open and Close:
(H + (O1 + C1) / 2 + ABS(H - (O1 + C1) / 2) + 2 * ((O + H + L + C) / 4) + ABS(H + (O1 + C1) / 2 + ABS(H - (O1 + C1) / 2) - 2 * ((O + H + L + C) / 4))) / 4
Low:
Using current actual Open and Close:
(L + O - ABS(L - O) + 2 * C - ABS(L + O - ABS(L - O) - 2 * C)) / 4
Using calculated Open and Close:
(L + (O1 + C1) / 2 - ABS(L - (O1 + C1) / 2) + 2 * ((O + H + L + C) / 4) - ABS(L + (O1 + C1) / 2 - ABS(L - (O1 + C1) / 2) - 2 * ((O + H + L + C) / 4))) / 4
You may wish to review the following:
How to create a Personal Criteria Forumula (PCF)
Plotting Custom Indicators with Examples
Handy PCF example formulas to help you learn the syntax of PCFs!
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 10/7/2004
Posts: 794
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Thank you!
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
|
You're welcome.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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