Heikin Ashi RSI Fade - Short Indicator

The Heikin Ashi RSI Fade - Short Indicator tool identifies potential short-selling opportunities by detecting price exhaustion using a combination of RSI momentum and Heikin Ashi candle streaks. It provides a signal-only framework designed for automation, featuring built-in virtual trade tracking and webhook-ready alerts.

Usage

The Usage section focuses on identifying "fading" opportunities where a bullish trend may be reaching exhaustion. The script requires two main conditions to be met simultaneously:

• RSI Bias: A long-window RSI (defaulting to the 1-hour timeframe) must be above a specific threshold (default 46). This ensures the macro trend is bullish, which is the ideal environment for fading temporary strength.
• Heikin Ashi Streak: A specified number of consecutive bullish Heikin Ashi candles (default 7 on the 15-minute timeframe) must occur. This signals a "stretched" move that may be due for a reversal.

Once these conditions align, the indicator plots a virtual entry and sets fixed Take Profit and Stop Loss levels. Users can monitor the state of these virtual positions through the on-chart status table and plot lines.

Details

The script utilizes request.security to monitor multiple timeframes, allowing it to filter entries based on higher-timeframe momentum while timing triggers on lower-timeframe candle structures.

Key implementation details include:

• Virtual Tracking: The indicator simulates a single short position at a time. It calculates exit levels (TP/SL) immediately upon entry.
• Bar Close Execution: All signals and exit detections occur on the close of the candle. This prevents "repainting" or false signals from intra-bar price wicks.
• Webhook Integration: The script generates JSON payloads formatted for DCA Bots. By setting a single alert for "Any alert() function call," the indicator can automate the entire lifecycle of a trade from entry to exit.

Settings

Order Size (Virtual)

• Base Order Size (USDT): Used for calculation in the status table display; does not affect actual exchange order size.

RSI Filter

• RSI Timeframe / Length: Determines the lookback and period for the macro RSI filter.
• RSI Condition / Level: Sets whether the RSI must be "Greater Than" or "Less Than" the specified level to allow signals.

Heikin Ashi Filter

• HA Timeframe / Consecutive Candles: Defines the required length of the candle streak on the lower timeframe.
• HA Streak Direction: Choose "Bullish" to fade strength (Shorting into green candles) or "Bearish" to follow a trend.

Exit

• Take Profit (%) / Stop Loss (%): Sets the fixed percentage distance from the entry price for automatic exits.

DCA Bot Webhook

• Bot ID / Email Token / Pair: Fields used to populate the JSON alert message for automated trading bots.

Visualization & Watermark

• Plotting Toggles: Options to show or hide entry lines, fill labels, signal shapes, and the status table.
• Watermark: Customization for brand text, position, and transparency.

FAQ

How do I access the Heikin Ashi RSI Fade - Short Indicator?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Can I use this for long positions?

This specific version is optimized for "Fade" shorting. For long positions, a separate version or configuration using the "Bearish" direction for the HA streak would be required.

Why didn't my Take Profit fire during a price wick?

The indicator evaluates exit conditions on the bar close to ensure signal stability. If the price touches your target but closes back above/below it within the same candle, the event will not fire.