Eig Heikin Ashi Signal (Multi Chart) Colorful

Eig Heikin Ashi Signal (Multi Chart) Colorful

This indicator is designed to identify potential trend reversals using a specific Heikin Ashi candle pattern. It operates in its own pane, displaying Heikin Ashi candles separately from the main price chart, allowing for a clean and focused analysis of momentum shifts.

The core of the strategy is to generate a Buy Signal after a period of downward momentum shows signs of reversing. It then tracks this hypothetical position with a clearly defined initial Stop Loss and an exit signal based on an opposite reversal pattern.

✨ Key Features

Dedicated Heikin Ashi Pane: Displays HA candles in a separate panel to avoid clutter on the main chart.
Clear Reversal Signals: Identifies a specific 3-candle pattern for potential buy entries (2 red candles followed by 1 green candle).
Automatic Position Info: When a signal appears, it automatically plots a label with:
- Entry Price
- Initial Stop Loss Price
- Calculated Risk Percentage
Dynamic Exit Signals: The position is exited based on either:
1. Stop Loss Hit: If the price hits the predefined SL level.
2. Take Profit (Reversal): When an opposite HA pattern (2 green candles followed by 1 red candle) appears.
Profit/Loss Calculation: On exit, a label displays the P/L percentage for the completed trade.
High Customization: Easily change the colors of HA candles, signals, and labels, as well as the text size for better readability.

📈 How It Works (The Strategy)

1. Buy Signal: A buy signal is generated when the indicator detects a sequence of two red Heikin Ashi candles followed by one green Heikin Ashi candle. This pattern suggests that selling pressure is weakening and buyers are starting to take control.
2. Initial Stop Loss: The Stop Loss is automatically set at the open price of the green signal candle (ha_open[1]). The risk for the trade is calculated based on the distance between the entry price and this SL.
3. Exit Signal: The position is considered closed when one of two conditions is met:
Reversal (Take Profit): A sell signal (used here as an exit) is triggered by a sequence of two green HA candles followed by one red HA candle. The label will be colored green for a win and purple for a loss.
Stop Loss: The ha_low price touches the initial Stop Loss level. A clear "SL" marker appears.

🛠️ How to Use
Look for the blue "Buy" triangle and its accompanying label.
Use the information in the label (Entry, SL, Risk %) to assess if the trade aligns with your risk management rules.
The system will manage the trade until either a Take Profit (reversal) signal or a Stop Loss Hit occurs.
For best results, use this indicator in conjunction with other analysis techniques like market structure, support/resistance levels, or higher timeframe trend analysis.