HAMA Candles

15 ก.พ. 2020

This is the equivalent of an indicator I have in Metatrader. The concept is really simple, it's based on a 20 period EMA but when you want to calculate the open, close, high and low prices for the candles, you adjust them based on a principle like Heikin Ashi system. The result is a candle system that can be used for two different things :

1- the color change is a good indication of the short-time trend direction. When used on higher time frame (hourly and above) you can easily find the dominant trend for shorter time frames
2- as a moving average and any system you have on moving averages, like, price crossing the candles or any other moving average crossing this one.