GCM Heikin Ashi RSI Trend CloudTitle: GCM Heikin Ashi RSI Trend Cloud
Description:
Overview
The GCM Heikin Ashi RSI Trend Cloud is a comprehensive momentum oscillator designed to filter out market noise and visualize trend strength. Unlike a standard RSI which can be jagged and difficult to interpret during consolidation, this indicator transforms RSI data into Heikin Ashi candles, providing a smoother, clearer view of market momentum.
This tool combines the lag-reducing benefits of RSI with the trend-visualizing power of Heikin Ashi, layered with Multi-Timeframe (HTF) clouds to identify macro trends.
Calculations & How it Works
This indicator does not use standard price action for its candles. Instead, it performs the following calculations:
• HARSI Candles: We calculate the RSI of the Open, High, Low, and Close of the chart. These four RSI values are then processed through the standard Heikin Ashi formula. This means the candles represent momentum movement, not price movement.
• Smoothing: A smoothing algorithm is applied to the "Open" of the HARSI candles (Default: 5). This reduces fake-outs by biasing the candle open toward the previous average, highlighting the true trend direction.
• Trend Bias Mode: A unique visual feature that adjusts the thickness of the RSI line based on your trading style.
o Buyers Mode: The line thickens when RSI is rising, thinning out when falling.
o Sellers Mode: The line thickens when RSI is falling, thinning out when rising.
• Ribbon Clouds: The script pulls RSI data from Higher Timeframes (HTF) and creates a cloud between the current chart's RSI and the HTF RSI. If the current RSI is above the HTF RSI, the cloud is bullish (Green), otherwise bearish (Red).
Key Features
• Derived Heikin Ashi RSI: Smooths out the noise of standard RSI to show clear red/green trends.
• Dynamic Trend Bias: Customize the main RSI line to emphasize Bullish or Bearish momentum using line weight.
• Auto-HTF Clouds: Automatically detects higher timeframes (e.g., 1m chart -> 3m cloud) to show support/resistance momentum from the macro trend.
• OB/OS Zones: Clearly defined Overbought and Oversold channels with "Extreme" outlier zones.
How to Use
1. Trend Continuation: Look for the HARSI candles to change color. A switch from Red to Green, while the Ribbon Cloud is also Green, indicates a strong bullish continuation.
2. Divergence: Because the candles are based on RSI, you can look for divergences between the HARSI candle peaks and the actual price action on the main chart.
3. The Cloud: Use the cloud as dynamic support. In a strong uptrend, the RSI line often bounces off the HTF Cloud without breaking through it.
Settings
• HARSI Length (Default 10): The lookback period for the RSI calculation.
• Smoothing (Default 5): Higher values create smoother candles but add lag. Lower values are more reactive.
Trend Bias Mode: Choose "Neutral" for a standard line, or "Buyers/Sellers" to visually emphasize your preferred market direction.
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