HARSI

The HARSI indicator is a comprehensive trend analysis tool that combines Heikin Ashi RSI calculations with moving averages to provide a refined perspective on market momentum and price action. By integrating the smoothing characteristics of Heikin Ashi candles with the Relative Strength Index (RSI), it filters market noise and highlights significant trend shifts.

Usage

The indicator can be used to identify potential entry and exit points through a combination of visual candle signals and Exponential Moving Averages (EMAs).

• Trend Identification: Green candles indicate bullish momentum, while red candles indicate bearish momentum.
• Signal Shapes: Upward triangles appearing below the bars suggest potential long entries, while downward triangles above the bars suggest potential short entries.
• Vegas Tunnel: The included high-period EMAs (144, 169, 576, 676) function as a "Vegas Tunnel," which traders often use as dynamic support/resistance zones or as targets for Take Profit (TP) and Stop Loss (SL) levels.
• Signal Confirmation: Users should look for signals (triangles) that align with candle color changes and the position of the price relative to the EMA tunnel for higher probability setups.

Details

The script utilizes a unique Heikin Ashi RSI Oscillator calculation. Unlike standard RSI which uses raw price, this indicator generates Heikin Ashi "candles" derived from RSI values. This process involves:

1. Calculating the Zero Median RSI.
2. Generating Open, High, Low, and Close values for these RSI-based candles.
3. Applying "Open Smoothing" to increase the bias toward prior values, which helps in visualizing the strength of a trend.
4. Incorporating multiple EMAs to provide a multi-layered trend-following framework on the price chart.

Settings

HARSI Candles

• Length: The period for the RSI calculations used to generate the internal candles.
• Open Smoothing: Controls the smoothing of the Heikin Ashi Open value; higher values increase the bias toward the previous open.
• Colour Palette: Customization options for the up/down candles and wicks.

RSI Plot

• Source: The price data source used for RSI calculations (default is OHLC4).
• Length: The lookback period for the RSI plot and histogram.
• Smoothed Mode RSI: Toggles between standard RSI and a smoothed version for the oscillator plot.
• Show RSI Plot/Histogram: Toggles visibility of the respective components.

Stochastic RSI Plot

• Show Stochastic: Enables a Stochastic RSI overlay.
• Ribbon: Toggles the ribbon visualization for the stochastic.
• Smoothing K/D: Adjusts the smoothing periods for the %K and %D stochastic lines.
• Stochastic Length: The lookback period for the stochastic calculation.
• Stoch Scaling %: Adjusts vertical scaling to prevent visual distortion.

EMA Settings

• EMA Length 1-5: Configures the periods for the five Exponential Moving Averages (defaults include the Vegas Tunnel periods like 144, 169, etc.).

FAQ

How do I use the signals?

The signals appear as triangles on the chart. An upward triangle indicates a bullish setup, often confirmed when the HARSI candle turns green after a period of consolidation.

What is the Vegas Tunnel?

The Vegas Tunnel consists of the longer-term EMAs (144 and 169). It acts as a major trend filter; price staying above the tunnel is generally considered bullish, while price below is bearish.

How can I access HARSI?

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