Smoothed RSI Heikin-Ashi Oscillator w/ Expanded Types

The Smoothed RSI Heikin-Ashi Oscillator w/ Expanded Types indicator provides a noise-filtered perspective on momentum by combining the Heikin-Ashi technique with the Relative Strength Index (RSI) and a wide array of smoothing options. By applying advanced smoothing formulas to both the RSI calculation and the underlying price data, this tool helps traders identify cleaner trends and potential reversals, particularly in volatile markets like Forex.

Usage

The indicator can be used to identify trend direction and exhaustion points. A bullish signal is typically generated when the Heikin-Ashi candles within the oscillator turn green or cross above a specific threshold, while a bearish signal occurs when they turn red or cross below.

• Trend Identification: Use the color of the oscillator candles to determine the current momentum bias.
• Overbought/Oversold: Monitor extreme levels for potential reversals.
• Noise Reduction: Adjust the smoothing periods and types to filter out market "jitter" that often plagues traditional RSI oscillators.

Details

This tool is a significant modification of the traditional Heikin-Ashi RSI Oscillator. It introduces "Heikin-Ashi Better" (HAB) calculations, a formula proposed by BNP-Paribas that aims to provide a superior smoothing effect compared to the standard (O+H+L+C)/4 calculation.

The formula for HAB used is: (Open+Close)/2 + (((Close-Open)/(High-Low)) * ABS((Close-Open)/2)).

By integrating over 35 different moving average types for both the RSI source and the final oscillator smoothing, the script allows for immense customization to suit different trading timeframes and asset classes.

Settings

RSI Settings

• RSI Source, HA Better Smoothing: Selects the algorithm used for "Better" Heikin-Ashi smoothing (AMA, T3, or Kaufman).
• RSI Source: Determines the price input for the RSI calculation, including standard prices, HA prices, and HAB prices.
• RSI Period: The lookback period for the RSI calculation.
• RSI Smoothing Type: Choose from 35+ moving average types to smooth the RSI output.
• RSI Smoothing Period: The length applied to the RSI smoothing.

Heikin-Ashi Settings

• MACD MA Type: Selects the moving average type used for the oscillator's internal calculations.
• Heikin-Ashi RSI Period: The period used for the internal Heikin-Ashi price averaging.
• Heikin-Ashi Candles Smoothing Period: Sets the smoothing intensity for the resulting oscillator candles.

UI Options

• Color bars?: Toggle to color the main chart bars based on the oscillator's state.
• Show signals?: Enable or disable visual buy/sell markers on the chart.
• Show RSI?: Toggles the visibility of the primary RSI line.

FAQ

How do I interpret the "Better" Heikin-Ashi source?

The "Better" source uses a more complex distribution of price movements relative to the candle range, intended to reduce the lag and noise found in standard Heikin-Ashi formulas.

Which smoothing type is best for Forex?

While subjective, many users prefer Kaufman or Jurik-style smoothing (like the options provided) to balance noise reduction with responsiveness.

How can I access Smoothed RSI Heikin-Ashi Oscillator w/ Expanded Types?

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