Heikinashi Smoothed（Titan_heikinashi_Smothed）
Indicator Overview
Clear Direction of Trend
The Heikin-Ashi Smoothed is an indicator that displays smoothed moving averages as Heikin-Ashi candles.
Compared to regular candlesticks, Heikin-Ashi uses the average of the open and close of the previous candle for its open, and the average of the open, high, low, and close of the current candle for its close, making it easier to understand the direction of the trend.
The Heikin-Ashi Smoothed further refines this by calculating the Heikin-Ashi using smoothed values of the price movements, reducing false signals and making it easier to grasp the trend direction.
Below is an image displaying the Heikin-Ashi Smoothed on a USD/JPY chart, where the price direction is immediately apparent.
【Example of Heikin-Ashi Smoothed on a USD/JPY chart】
Using a Filter to Further Reduce False Signals
Although the Heikin-Ashi Smoothed makes it easier to discern the direction of the trend, false signals can still occur in choppy markets.
While trend indicators inherently encounter false signals, this indicator includes a filter function that mitigates them. This filter displays the same value as the previous candle if the change in the four values calculated for the Heikin-Ashi does not exceed a specified range. If the change exceeds the set range, then it updates to show the new value, helping to avoid unnecessary fluctuations in sideways markets.
Note, however, that this can delay the response, making it unsuitable for capturing the very start of price movements.
【Example with a filter set at 0.3 on the daily USD/JPY chart】
※ This indicator only functions with the Windows versions of MT5 and MT4 from TitanFX.
Indicator Terms of Use
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Indicator Settings
Input (for MT5), Parameter Input (for MT4) Tab Settings
| Variable Name | Description | Default |
|---|---|---|
| Period | Specifies the period for the moving average. | 14 |
| Moving average type | Choose from Simple Moving Average (SMA), Exponential Moving Average (EMA), Smoothed Moving Average (SMMA), or Linear Weighted Moving Average (LWMA). | SMA |
| Filter | If applying a filter, specify the range. | 0.0 |
Heikin-Ashi Smoothed Indicator for MT4 and MT5
| MT5 | MT4 | Description |
|---|---|---|
| HeikenAshi(Middle) | 0-3 | Color for bullish candles |
| HeikenAshi(Right) | 4-7 | Color for bearish candles |
| HeikenAshi(Left) | 8-11 | Color for doji candles |