STANDARDIZED MACD HEIKIN ASHI TRANSFORMED Trading Guide

The Standardized MACD Heikin-Ashi Transformed indicator standardizes MACD movement, converts it into Heikin-Ashi style oscillator candles, and adds signal, histogram, reversal, and trend-state outputs. It is built for cleaner momentum reading than raw MACD alone.

What does the indicator show?

• MACD Heikin-Ashi Candles: Open, high, low, and close values derived from standardized MACD behavior.
• Signal Line and Histogram: Traditional MACD confirmation, transformed into oscillator space.
• Overbought and Oversold Markers: Reversion signals based on the configured threshold.
• Bar Coloring State: A compact bullish, bearish, or neutral momentum state.

Key Settings

• Source: Price source used for the MACD calculation.
• Fast Length and Slow Length: Define the core MACD impulse.
• Signal Source and Signal Length: Choose which transformed value feeds the signal line.
• Display Mode: Controls how the transformed oscillator is visualized.
• Reversion Threshold: Sets the overbought and oversold levels for reversal markers.

How to use Strategy Parameters (Condition Source)

Within the Strategy Tester module, this indicator can be used for oscillator trend filters, MACD crosses, and overbought or oversold reversion events.

1. Transformed MACD Values

• open, high, low, close - Heikin-Ashi style MACD candle values.
• hl2, hlc3, ohlc4, hlcc4 - Derived oscillator price sources.
• signal and hist - Signal line and histogram.
• barColorState - Outputs 1 for bullish, -1 for bearish, and 0 for neutral.

Strategy Example: Enter Long when close crosses_above signal and barColorState == 1, so the crossover agrees with the transformed candle state.

2. Signals and Trend State

• obSignal and osSignal - Overbought and oversold reversion events.
• bullishTrend and bearishTrend - Midline crossover and crossunder events.
• haUptrend and haDowntrend - Positive or negative Heikin-Ashi momentum state.
• macdBullCross and macdBearCross - MACD and signal cross events.

Strategy Example: Use osSignal is true as an early Long trigger only if haUptrend is true, filtering reversion signals through momentum direction.