BERLIN Candles: Heikin-Ashi Smoothing with True Price Markers

Summary

BERLIN Candles adapt Heikin-Ashi candles to keep their trend-smoothing appearance while retaining the underlying bar’s actual high and low. The indicator uses a smoothed prior close for its open and a Heikin-Ashi close for its close, constraining both to the real bar’s range. A cross marks the actual close, so the display preserves a reference to traded price even when the synthetic candle values differ.

The script also calculates a 14-period ATR, offers an optional 26-period Donchian-style baseline, and exposes its plotted candle values as sources for other indicators. These are charting features, not a tested trading strategy: the document supplies no performance results or rules for entries, exits, or position sizing. The candle transformation may help visualize direction and price range, but the smoothed close remains synthetic; users should distinguish it from the marked market close when making decisions or feeding values into other tools.

Key ideas

• BERLIN candles use a smoothed prior close as their open and a Heikin-Ashi close as their close.
• The candle open and close are bounded by the underlying bar’s high and low.
• A cross marker displays the actual close to preserve a direct price reference.
• The indicator includes a 14-period ATR display and an optional baseline derived from a 26-period range midpoint.
• The document describes a visualization tool and reports no trading-performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.