Heiken Ashi Algo and the Mass Effect Moving Average: Almost Here
Well ladies and gentlemen I think I have created a monster and I'm really happy to call it the heiken Ashi algo and the Mass Effect moving average combination.
Don't worry I have not been leaving you hanging. It's just been very busy and I want to make sure that this thing works beautifully for you.
So what is the heiken Ashi algo oscillator?
it is an oscillator much like the original heikin-ashi RSI with a ton more features.
As you know a little while ago I came out with the CoffeeShop Crypto HARSI, Update to the original HARSI.
And as development on that oscillator continued I had to change the name to the algo because now the oscillator actually speaks to you while trading is taking place.
But as you know you should never use a single indicator by itself to enter and exit trades and understand what's happening on your chart. you should always use something as a secondary Confluence or even a tertiary confluence. Because the more confluences you have the better right?
So with that I continued development on the Mass Effect moving average and you can use them beautifully in combination.
In this video I don't want to get into the technical Aspect of all the details on how the oscillator and the moving average work but I do want to show you the parts that have been developed and what they mean.
feel free to leave your suggestions below and I will make adjustments if needed.
I'm probably going to need one more week before fully releasing both of these together and until then I'd love to communicate with you on anything to make it more fluid.
With that let's take a look at my chart and see the breakdown.
The Heiken Ashi Algo
Double Stochastic - Uses a mean regression calculation for pullback notifications but it also adds support to knowing when a trend is in full swing.
This happens when you see both stochastic ribbons touch each other while they are the same color
Green touching green is a move to the upside. It matters most When it's above or below the 50 level.
the other thing you can see here is when they touch and when they touch again as the same color is a clear sign of a Divergence.
IBXL - Inside Bar Calculation. This will be moved to the Mass Effect MA as well
Resistance / Support / are dynamic levels which change over time
Bull Key level - Are Significant price or Price action levels which almost never change over longer periods of time. when I get a key level alert I Market on my chart with a thick line and I lock it in place. These are the major areas of supply and demand Zone on your chart and you want to watch them closely when price gets near these levels
Pull Back - Helps you draw out targets to your trend lines.
Now let's talk real quick about the mass effect moving average and what it will include.
this uses a mean regression strategy so that you can swing trade- And get your confluences of when prices going to move up or down so doesn't matter if you are in an uptrend or a downtrend .
Stop lost Trend color - Is this really a stop loss line which will follow your price action and depending on its color will tell you if you should be using a stop loss of a guy or a stop loss of a sell. Obviously if it's red you should be selling and if it's green you should be buying. do not use it incorrectly. Just because it changes to Green doesn't mean you by and just because it changes to Red doesn't mean you cell. It only means you are in an area where you should be buying or selling.
The EMA's - it includes four different exponential moving averages which you can set appropriately to your style.
The VWAP - Included in this is a VWAP Moving average. Even though the VWAP is used as a moving average against the RSI in the oscillator below, I included the VWAP in the Mass Effect moving average because once you switch to a daily chart The VWAP in the oscillator disappears but you can still have it on your chart in the Mass Effect moving average. So switching to a daily chart you will still be able to see your VWAP.
The V-CROSS - This indication shows up so that you can see when the V WAP is crossing over your price level. This helps you know from point to point if you are above or below a support or resistance level and where is your price in relation to your VWAP. This will also help you notice when price is overbought or oversold.
Fractals - Show you pivot points in market structure. I use them to find exit points for trades when there is no immediate swing low or high to be seen. Usually i look further left and use one of these points to exit. But they have even more application which I'll get into in another video.
The Trend Ribbon - Is a bullish and or bearish colored ribbon to show you the trend that works in Confluence with your stop loss line which also changes from red to Green. when they are both the same color you are in a trend in that direction of up or down. The good thing about the trend ribbon is it's always seeking the same level as the VWAP and when it finally catches up to it that's when the trend usually goes flat and then reverses.
Don't worry I have not been leaving you hanging. It's just been very busy and I want to make sure that this thing works beautifully for you.
So what is the heiken Ashi algo oscillator?
it is an oscillator much like the original heikin-ashi RSI with a ton more features.
As you know a little while ago I came out with the CoffeeShop Crypto HARSI, Update to the original HARSI.
And as development on that oscillator continued I had to change the name to the algo because now the oscillator actually speaks to you while trading is taking place.
But as you know you should never use a single indicator by itself to enter and exit trades and understand what's happening on your chart. you should always use something as a secondary Confluence or even a tertiary confluence. Because the more confluences you have the better right?
So with that I continued development on the Mass Effect moving average and you can use them beautifully in combination.
In this video I don't want to get into the technical Aspect of all the details on how the oscillator and the moving average work but I do want to show you the parts that have been developed and what they mean.
feel free to leave your suggestions below and I will make adjustments if needed.
I'm probably going to need one more week before fully releasing both of these together and until then I'd love to communicate with you on anything to make it more fluid.
With that let's take a look at my chart and see the breakdown.
The Heiken Ashi Algo
Double Stochastic - Uses a mean regression calculation for pullback notifications but it also adds support to knowing when a trend is in full swing.
This happens when you see both stochastic ribbons touch each other while they are the same color
Green touching green is a move to the upside. It matters most When it's above or below the 50 level.
the other thing you can see here is when they touch and when they touch again as the same color is a clear sign of a Divergence.
IBXL - Inside Bar Calculation. This will be moved to the Mass Effect MA as well
Resistance / Support / are dynamic levels which change over time
Bull Key level - Are Significant price or Price action levels which almost never change over longer periods of time. when I get a key level alert I Market on my chart with a thick line and I lock it in place. These are the major areas of supply and demand Zone on your chart and you want to watch them closely when price gets near these levels
Pull Back - Helps you draw out targets to your trend lines.
Now let's talk real quick about the mass effect moving average and what it will include.
this uses a mean regression strategy so that you can swing trade- And get your confluences of when prices going to move up or down so doesn't matter if you are in an uptrend or a downtrend .
Stop lost Trend color - Is this really a stop loss line which will follow your price action and depending on its color will tell you if you should be using a stop loss of a guy or a stop loss of a sell. Obviously if it's red you should be selling and if it's green you should be buying. do not use it incorrectly. Just because it changes to Green doesn't mean you by and just because it changes to Red doesn't mean you cell. It only means you are in an area where you should be buying or selling.
The EMA's - it includes four different exponential moving averages which you can set appropriately to your style.
The VWAP - Included in this is a VWAP Moving average. Even though the VWAP is used as a moving average against the RSI in the oscillator below, I included the VWAP in the Mass Effect moving average because once you switch to a daily chart The VWAP in the oscillator disappears but you can still have it on your chart in the Mass Effect moving average. So switching to a daily chart you will still be able to see your VWAP.
The V-CROSS - This indication shows up so that you can see when the V WAP is crossing over your price level. This helps you know from point to point if you are above or below a support or resistance level and where is your price in relation to your VWAP. This will also help you notice when price is overbought or oversold.
Fractals - Show you pivot points in market structure. I use them to find exit points for trades when there is no immediate swing low or high to be seen. Usually i look further left and use one of these points to exit. But they have even more application which I'll get into in another video.
The Trend Ribbon - Is a bullish and or bearish colored ribbon to show you the trend that works in Confluence with your stop loss line which also changes from red to Green. when they are both the same color you are in a trend in that direction of up or down. The good thing about the trend ribbon is it's always seeking the same level as the VWAP and when it finally catches up to it that's when the trend usually goes flat and then reverses.
In this video idea i was using an unreleased version of the MassEfx "Mass Effect Moving Average" and you guys have been eagerly waiting for it to go public
Im happy to say that as of yesterday it has been released.
You can get it here on TradingView