Heiken Ashi Supertrend ADX

The Heiken Ashi Supertrend ADX indicator identifies strong trend movements and high-probability entries by combining Heiken Ashi price action, the Supertrend indicator, and an optional ADX momentum filter. It is designed to capture trend momentum while protecting capital through a sophisticated triple-layer stop loss mechanism.

Usage

The script is used to identify trend-following opportunities. An entry is signaled when a Heiken Ashi candle shows strong momentum (minimal or no wicks) in the direction of the current trend.

• Bullish Entry: Occurs when a green Heiken Ashi candle has no lower wick, provided the Supertrend is bullish and the ADX (if enabled) is above the threshold with DI+ > DI-.
• Bearish Entry: Occurs when a red Heiken Ashi candle has no upper wick, provided the Supertrend is bearish and the ADX (if enabled) is above the threshold with DI- > DI+.

Exits occur when an opposing Heiken Ashi momentum signal appears or when one of the active stop loss levels is hit. This tool is particularly effective on higher timeframes like the 4-hour or Daily charts where trends are more established.

Details

The indicator calculates signals using Heiken Ashi data but overlays them on standard candles to ensure accurate price execution. The logic relies on "full-bodied" candles which represent decisive price movement. To filter out market noise, the ADX component ensures trades are only taken during periods of high trend strength.

The core of the risk management is the triple-layer system:

• ATR Trailing Stop: A dynamic level that follows price to lock in profits during extended trends.
• Swing Point Stop: A structural stop placed at recent highs or lows to respect market support and resistance.
• Insurance Stop: A fixed percentage-based safety net to protect against high-volatility spikes immediately after entry.

Settings

Supertrend Settings

• Use Supertrend for Entries: Toggles whether the Supertrend direction must align with the signal.
• ATR Period: Sets the lookback period for the ATR calculation within the Supertrend.
• Supertrend Factor: Adjusts the sensitivity of the Supertrend line relative to volatility.

ADX Filter

• Use ADX Filter: Enables or disables the momentum-based trend filter.
• ADX Period: The lookback period for calculating ADX and DMI values.
• ADX Threshold: The minimum value ADX must reach to allow trade entries.

Stop Loss Options

• Use Swing Point Stop: Enables stops based on recent market structure.
• Swing Lookback Periods: Number of bars to look back for identifying swing highs/lows.
• Use Insurance Stop: Toggles the percentage-based safety net.
• Insurance Stop Loss Percent: The fixed percentage distance from entry for the insurance stop.
• Use ATR Trailing Stop: Enables the volatility-adjusted trailing stop.
• Trailing Stop ATR Multiplier: Determines how many ATRs away the trailing stop is placed.

FAQ

How do I use the different stop loss levels?

You can enable any combination of the three stop loss types in the settings. The indicator will trigger an exit as soon as the first active stop level is reached by the price.

Which markets does this work best on?

While originally designed for Cryptocurrency, the adaptive nature of ATR-based components makes it suitable for Forex, Stocks, and Indices.

How can I access Heiken Ashi Supertrend ADX?

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