Heikin - Ashi Candlesticks

Hi Cmacdon,

Agreed re many of the books out there. However of course there are some gems out there. For instance, my Thomas Bulkowski books on chart Patterns and Candlesticks are like Encyclopedia reference books!

Thanks for your evaluation of the  Vervoort book. He has lots of info and videos on his web site so may just look at those and avoid. Might think about the Valcu book. I do have his “Stocks and Commodities” article which gives the 5 rules.

Re the graphics, the site can be a bit flakey. For adding Graphics ,JPS’s etc don’t use the quick reply box. Use the “Post Reply” Box with the blue arrow, this will bring up the message box below. Some times the top row of Icons are unreadable and the page has to be refreshed. For my previous post it would not up load in Firefox so I retried in Crome and it worked, so go figure.

Cheers Jazza

Hi Cmacdon and Maximo,

Hearty congrats, great effort. Very happy with these solutions. Sorry about the late reply but immediately noticed some visual anomalies that I wanted to figure out first.

Noticed that some of the close priced congestion bars differed in trend between the different solutions as per the super imposed screen shot below.

The answer is easy once you know but it took me some time to figure out. Zooming the page corrects the candle Up/Down anomalies.  I put the formula into an excel spread sheet and it checked out. I also carefully checked the price of the HA candle with the Crosshair under zoom and they were correct.

The HA formula alters all the OHLC prices to 3 decimal point increments at different times. In respect to the Origional Bullcharts HA formula, when the Candle bodies are small, unfilled candles do not visually cope with these fractions and can be filled under normal unzoomed conditions. When you are looking at the “Hard Right Edge” of the chart I think this is Important.

Certainly  Maximo, love your solid fill Up/Down color solution as it solves any ambiguity as to whether the HA bars have closed up or down in narrow ranges.

Cmacdon, as a Black and White candlestick traditionalist, I also love you’re your solution. Just gotta remember to zoom in with congestion bars if you are concerned about the correct open or close.

Thanks guys, Cheers. 

PS: Cmacdon, figure from previous comments that you may have the Sylvain Vervoort book “Capturing profit with technical analysis” Worth buying in your opinion?

[target

=Price;]

haClose := (

O+H+L+C)/4;

haOpen := (

prev + hist(haClose,1))/2;

haHigh :=

max(H, haOpen, haClose);

haLow :=

min(L, haOpen, haClose);

haCl:=((

O+H+L+C)/4+haOpen+Max((O+H+L+C)/4,Max(H,haOpen))+Min((O+H+L+C)/4,Min(L,haOpen)))/4;

Greenlight:=Hahigh-haopen;

Redlight:=Halow-haOpen;

{I changed this to a difference to net off the minor congestion amounts to whatever if the largest Traffic light tmeasure. this makes the trends more continuous for the coloured bars}

LightDiff:=Greenlight+Redlight;

[linestyle=Candle;color=Green; ]

If

(lightdiff >=0.000,haOpen,undefined);

If

(lightdiff >=0.000, haHigh,undefined);

If

(lightdiff >=0.000, haLow,undefined);

If

(lightdiff >=0.000, haClose,undefined);

[linestyle

=Candle;color=Red; ]

If

(lightdiff <=0.000, haClose,undefined);

If

(lightdiff <=0.000, haLow,undefined);

If

(lightdiff <=0.000, haHigh,undefined);

If

(lightdiff <=0.000,haOpen,undefined);