Add-On for Tick Delta and Heikin Ashii Trend

[Soultrader]

Here's an interesting study I started today. This idea was derived by taking a look at Walterw's Tick Delta indicator. The Heikin Ashii Trend indicator is a useful indicator to see the bigger trend of a price move.

Heikin Ashii Trend

If the 5th bar of the last 5 bars closes above the 50% line of the previous 5 bar average, it stays the same color. If the 5th bar closes below the the 50% average it changes color.

Here's what I have in mind. I want to add a delta divergence into this concept by applying Walterw's Tick Delta. Whenever there is a color divergence between the Heikin Ashii and TICK Delta, I want a dot or arrow to be plotted above or below the price bar. So if the Heikin Ashii is blue but the TICK delta shows more sellers, a dot/arrow will be plotted. If a Heikin Ashii is red but the TICK delta shows more buyers, a dot/arrow will be plotted.

The reason for this is to spot for divergences and be prepared for a reversal. It is based for a rangebound market and may come in handy at S&R levels, double bottoms/tops, etc...

Take a look at the chart below and let me know if this can be of any use. Thanks

[trader273]

If you have the newest TS ( i believe 8.2) you can now apply paint bars to candlesticks now. Just an FYI.

[walterw]

Ok, here it is... the Delta Ttm Divergence indicator.... it will plot a red cross on top of bar high when we have a bearish divergence between TTm trend and Volume Delta.... as well as oposite bullish divergence.... this will be at the end of the current bar... so it will not give false signals.... enjoy cheers Walter.

[Soultrader]

Great stuff Walterw. Thank you very much for this. It should be interesting to see the color divergences at key pivots. The rest should be considered noise.

[walterw]

Correct, dont rely on this indicator by itself.... it has to be blended to a key area strategy... otherwise its just useles... cheers Walter.

[Soultrader]

Hi walterw,

Just wanted to thank you again for the TTM Volume Delta add-on. Its working like a charm and I am very amazed how easy it is visually to spot reversals. I'll post some charts soon on it. Thanks!

[walterw]

Great ¡¡ very happy for that, I did receive a lot from your generosity here, learned great things that helped my trading a lot, its great to give a little bit back, I think thats what collaboration is all about... cheers Walter.

[Soultrader]

	Quote:	walterw
	Great ¡¡ very happy for that, I did receive a lot from your generosity here, learned great things that helped my trading a lot, its great to give a little bit back, I think thats what collaboration is all about... cheers Walter.

I agree Everyone is very helpful here to help one another improve as a trader.

[Robert2617]

I know you guys are worlds ahead of me on trading and I have a question about TTM Trend. Since I am just beginning in all this I have been looking around a lot and found a PaintBar indicator or two. I've studied them and to me, it looks like the one I have posted below is a little quicker and more accurate than the TTM Trend PB indicator. Would you guys take a look and see if you get the same results? Thanks.

Here is the code, compiled indicator below.

{ ModHA PaintBarStudy 1/20/04 modified Heikin-Ashi technique compares current bar open to close range with prior bars...if current is within prior then color remains the same } inputs: UpColor(green),DnColor(red),CompBars(6); vars: haClose(0),haOpen(0),haHigh(0),haLow(0), color(0); if BarNumber = 1 then begin haOpen = open; haClose = (O+H+L+C)/4; haHigh = MaxList( high, haOpen, haClose); haLow = MinList( low, haOpen,haClose); end; if BarNumber > 1 then begin haClose = (O+H+L+C)/4; haOpen = (haOpen [1] + haClose [1])/2 ; haHigh = MaxList(High, haOpen, haClose) ; haLow = MinList(Low, haOpen, haClose) ; if haClose > haOpen then color = UpColor else color = DnColor; for value1 = 1 to CompBars begin if haOpen <= MaxList(haOpen[value1],haClose[value1]) and haOpen >= MinList(haOpen[value1],haClose[value1]) and haClose <= MaxList(haOpen[value1],haClose[value1]) and haClose >= MinList(haOpen[value1],haClose[value1]) then color = color[value1]; end; plotPB(haOpen,haClose,"heikin-ashi",color); SetPlotWidth(1,4); SetPlotColor(1,color); end;

[Robert2617]

I take it back guys. I now think they are exactly the same. I think that the colors were throwing me off. My eyes were playing tricks on me. I checked chart after chart tonight and they preformed exactly the same. Carry on and I'll crawl back under my rock now.