Heikin-Ashi Reversals with Region & Dots

Mar 7

If you want to use Heiken Ashi candles as a way to screen for bullish and bearish reversal.
Green background is stay long and strong. Red background = potential top or bearish continuation.
Yellow dots show strong red heiken ashi candles with small upside wicks. The next candle determines whether it should be green or red. If next heiken ashi candle closes above the current candle = green, bull trend still in line. If next heiken ashi candle closes below, then time to sell

Mar 14

Release Notes

Heikin-Ashi Reversals with Region & Dots is a trend-following tool designed to identify strong and weak rebounds in Heiken Ashi candles. By overlaying Heiken Ashi signals onto standard candlesticks, this indicator helps traders determine whether a trend remains intact or is weakening.

⯁KEY FEATURES

🔹 Heiken Ashi Trend Overlay
Calculates Heiken Ashi candles in the background while allowing traders to view standard candlesticks for enhanced decision-making.

🔹 Weak Bearish Candle Detection
Marks large bearish Heiken Ashi candles (red with shallow upside wicks) using yellow dots, highlighting potential reversal points.

🔹 Reversal Confirmation with Trend Coloring
The next candle determines trend continuation:

• Green background → Bullish trend still valid, uptrend likely to continue.
  
• Red background → Potential top or bearish continuation, signaling caution.
  

🔹 Dynamic Background Coloring
A region begins at each weak bearish setup and extends until a new setup occurs. If a bullish reversal is confirmed, the background turns green; otherwise, it turns red. Three consecutive bullish Heiken Ashi candles force the background to remain green, reinforcing strong trends.

🔹 Visual Buy & Sell Signals

• Yellow dots → Identifies weak bearish Heiken Ashi candles.
  
• Green dots → Confirms bullish reversals (trend intact).
  
• Red dots → Confirms bearish reversals (potential trend failure).
  

⯁ HOW TO USE

✅ Stay with the Trend → If the background remains green, the bull trend is intact. Corrections should be quick and shallow.

🚨 Exit or Reassess → A red background suggests a potential top or bearish continuation. Traders may consider exiting or waiting for further confirmation.

📈 Screen for Trend Reversals → Use Heiken Ashi candles as a guide to assess bullish and bearish shifts based on trend strength.

The indicator can be used at different time frames. Higher time frames are more trustworthy for determining the macro trends, while shorter time frame charts might be good for quick scalps or short term trades.

⯁ CONCLUSION

Heikin-Ashi Reversals with Region & Dots is a valuable tool for traders looking to refine trend-following strategies. By visually marking weak bearish candles and confirming trend reversals with color-coded regions, this indicator simplifies decision-making and helps traders stick with strong trends while avoiding potential reversals.