Combining RSI Heikin Ashi Candles, Flow States, and Wick-Based Trend Signals

Summary

This indicator design converts RSI readings into Heikin Ashi candles, using RSI of price close for the candle close and a recursive smoother for its open. The candle body represents the net oscillator move, while its wicks show the range of the RSI readings. The article describes safeguards for inverted high and low values and for undefined values during the RSI warm-up. A separate stochastic-based flow calculation assigns colors to six states; those colors describe the flow calculation, not whether the candle itself closed up or down.

A trend line changes state according to candle wick size relative to the body, rather than using the volatility bands typical of SuperTrend indicators. A separate RSI series supplies pivot-based divergence signals, and optional filters can restrict candle-flip or oscillator-breakout signals. The text identifies caveats in the flow label and in one buffer filter’s actual logic, and corrects a hidden bullish divergence condition from the source version. These are indicator rules and implementation observations, not evidence of profitability; the document provides no performance evaluation.

Key ideas

• The indicator represents an RSI series as Heikin Ashi candles with a smoothed recursive open.
• Candle colors encode a separate stochastic-based flow state, so color and candle direction can disagree.
• Its trend line uses wick-to-body geometry rather than ATR bands to determine bullish, bearish, or indefinite states.
• Divergences use a separate RSI series, while optional filters gate candle-flip and breakout signals.
• The author notes logic caveats and provides no evidence that the signals are profitable.

Tags

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