MastersOfTrading

MoT - [Analyst] - Berlin Candles

**THE INDICATOR**

A problem with Heikin Ashi is that while it gives you a great overview of overall direction, it is rarely possible to use it as a replacement for normal Japanese candlesticks . The reason for this is that actual price data is lost, since the candles are more akin to a moving average than a different way to see price action. Also, with Heikin-Ashi, most of the actual price action is lost, because the candles can be bigger than the high and low of the underlying Japanese candlestick .

With BERLIN Candles we have tried to fix that problem. By using a smoothed out version of the previous Heikin Ashi candle close as the current BERLIN Candle open, the high and low of the actual Japanese candlestick for the high and low of the BERLIN Candle, and the current Heikin Ashi close as the BERLIN Candle close, while setting hard limits for BERLIN Candle open and close values so that they can never exceed the high and low of the underlying Japanese candlestick .

One problem still persists though. The actual current price data is lost. However, the BERLIN Candles have solved this by adding a fifth part to the candles. The close of the underlying Japanese candlesticks are indicated with a plus-sign. This way, actual price data is never lost, while keeping all of the other benefits of this type of candles.

A few added bonuses:
-The addition of the 14 period ATR at the latest candle
-The baseline from Ichimoku is included as an option
-The 14 period ATR value of each candle can be seen in the indicator data as the orange value

**THE CHART**

AUDNZD on the 4HR Time Frame


**ON THE CHART INDICATORS**

- In the Top Panel we have our version of On-Balance Volume based on Heikin-Ashi Candles

- On the Chart we have this Indicator, Berlin Candles which is our unique take on a mix between normal candles, Heikin Ashi candles all while retaining the essential data.

- Also on the chart we have our ATR-filtered Exponential Moving Average . It either plots further away from price or closer to price, the higher or lower the current ATR is compared to recent history.

- In the Bottom Panel we have our action locator tool which is also extremely powerful at identifying ranging markets and trends.


**MASTERS OF TRADING**

Many Thanks and Trade Safe!
Remove from Favorite Scripts Add to Favorite Scripts

Comments

Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out