Indicator Heikin-Ashi Difference calculates and displays as an oscillator the difference between the Open and Close prices of Heikin-Ashi candlesticks, a signal line being added. It can be used in combination with haOpen.
It has two parameters:
- Signal period - signal line calculation period;
- Signal Method - signal line calculation method.
Calculation:
HA Difference = (HAClose - HAOpen) / Point
Signal = MA(HA Difference, Period, Method)
where:
HAOpen = (PrevHAOpen + PrevHAClose) / 2.0
HAClose = (Open + High + Low + Close) / 4.0
- HAClose - Heikin-Ashi candlestick closing price;
- HAOpen - Heikin-Ashi candlestick opening price;
- PrevHAClose - closing price of the previous Heikin-Ashi candlestick;
- PrevHAOpen - opening price of the previous Heikin-Ashi candlestick;
- MA - moving average with Signal period and Signal Method, based on the value of HA Difference.
Fig 1. Indicator Heikin-Ashi Difference
Fig. 2. Indicator Heikin-Ashi Difference in combination with Heikin-Ashi Open