The Heikin-Ashi Difference indicator is a powerful tool for traders using MetaTrader 5. It calculates and displays the difference between the Open and Close prices of Heikin-Ashi candlesticks as an oscillator, complete with a handy signal line. This indicator can be particularly effective when used alongside the haOpen indicator.
Here’s a quick rundown of its two key parameters:
- Signal Period: This determines the calculation period for the signal line.
- Signal Method: This specifies the method used for calculating the signal line.
How is it Calculated?
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: The closing price of the Heikin-Ashi candlestick.
- HAOpen: The opening price of the Heikin-Ashi candlestick.
- PrevHAClose: The closing price of the previous Heikin-Ashi candlestick.
- PrevHAOpen: The opening price of the previous Heikin-Ashi candlestick.
- MA: Moving average based on the Signal period and Signal Method, applied to the value of HA Difference.
Fig 1. Indicator Heikin-Ashi Difference
Fig. 2. Indicator Heikin-Ashi Difference in combination with Heikin-Ashi Open
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