Pocket Options OTC RedLine
- Indicators
- Matthew Palulis
- Version: 3.5
- Activations: 5
Custom Heiken Ashi and Moving Averages-Based Signal Indicator
Overview
This Heiken Ashi and Moving Average-based indicator is designed to identify trend-following buy and sell signals by analyzing the relationship between three Exponential Moving Averages (EMAs). It applies Heiken Ashi smoothing to filter market noise and improve trend clarity.
- EMA Crossovers for Trend Detection – Uses 3, 8, and 25-period EMAs to confirm trends.
- Heiken Ashi Smoothing – Reduces market noise for better trend visualization.
- Customizable Alerts and Icons – Get notified with visual signals and optional sound alerts.
- Trend Filtering – Helps avoid false signals by confirming momentum shifts.
- User-Friendly and Adjustable – Customize EMA settings, icon placement, and alerts.
This indicator is ideal for traders focusing on trend-following strategies using Heiken Ashi candles and moving averages.
Key Features and Benefits
-
Three Moving Averages for Trend Confirmation
- Fast EMA (3-period) – Captures short-term price movement.
- Medium EMA (8-period) – Tracks medium-term trends.
- Slow EMA (25-period) – Identifies longer-term market direction.
- Buy Signal – Triggered when Fast EMA > Medium EMA > Slow EMA (Uptrend).
- Sell Signal – Triggered when Fast EMA < Medium EMA < Slow EMA (Downtrend).
-
Heiken Ashi Candle Integration
- Uses Heiken Ashi Open, High, Low, and Close values to smooth price action.
- Helps identify clearer trends compared to traditional candlestick analysis.
-
Real-Time Alerts and Notifications
- On-Screen Alerts – Notifications inside MetaTrader 5 (MT5).
- Optional Sound Alerts – Stay informed of buy and sell opportunities.
- Visual Chart Signals – Buy and sell arrows appear directly on the chart.
-
Customizable Indicator Display
- Modify arrow icons, colors, and sizes for clear trade signals.
- Works with both Heiken Ashi and regular candles.
- Adjustable signal placement sensitivity to reduce noise.
-
Optimized for Trend-Following Strategies
- Helps traders stay aligned with market trends using a structured approach.
- Designed for markets with high volatility.
How It Works
Step 1: Heiken Ashi Calculation
The indicator calculates Heiken Ashi Open, High, Low, and Close values. These values are used for smoother trend detection.
Step 2: EMA Crossover Logic
The indicator plots Fast (3), Medium (8), and Slow (25) EMAs.
- A Buy Signal occurs when Fast EMA > Medium EMA > Slow EMA.
- A Sell Signal occurs when Fast EMA < Medium EMA < Slow EMA.
Step 3: Alerts and Visual Signals
- Buy Signal – A green arrow appears below the lowest price of recent bars.
- Sell Signal – A red arrow appears above the highest price of recent bars.
- Alerts notify traders in real time when conditions are met.
Customizable Settings
-
Moving Averages Settings:
- Fast EMA Period – Default 3 (short-term trend sensitivity).
- Medium EMA Period – Default 8 (medium-term trend tracking).
- Slow EMA Period – Default 25 (long-term trend filtering).
- Moving Average Type – Choose between EMA, SMA, LWMA, etc.
-
Visual and Signal Settings:
- Buy and Sell Arrows – Customize icon type, color, and position.
- Signal Filtering – Adjust sensitivity for crossover detection.
-
Alerts and Notifications:
- Enable or Disable Alerts – Turn on or off on-screen and sound alerts.
- Adjust Icon Placement – Modify distance between signals and price action.
Recommended Markets and Timeframes
- Markets: Works across forex, stocks, indices, commodities, and crypto.
- Timeframes: Works on M1 to H4 (Recommended: M5, M15, H1).
Installation and Setup
(The previous instructions for downloading, copying, restarting, and applying the indicator have been removed.)
Why Use This Indicator?
- Reliable Trend Identification – Uses EMA crossovers and Heiken Ashi smoothing for clear signals.
- Custom Alerts and Notifications – Stay informed without constantly monitoring charts.
- Clear Buy and Sell Markers – Easy-to-read visual signals.
- Adaptable to Any Market – Works across forex, stocks, commodities, and crypto.
Important Notes and Disclaimer
- Platform Compatibility: Designed for MetaTrader 5 (MT5).
- No Guaranteed Outcomes: This indicator provides analysis but does not predict future price movements.
- User Responsibility: Always test in a demo account before using in live trading.
This Heiken Ashi and EMA-Based Indicator provides a structured approach to trend-following strategies, helping traders identify potential trade opportunities with clear signals and customizable alerts.
