Heiken Ashi Trend Bias with Moving Averages and Estimated Net Volume

Summary

This indicator combines moving average alignment, Heiken Ashi candle calculations, and a candle-based estimate of net volume to mark bullish or bearish bias. It defines an uptrend when several short and long moving averages, along with an average range band, sit above a reference exponential average; the reverse arrangement defines a downtrend. A short moving average relative to the reference average provides an additional directional check.

The script estimates buying and selling volume fractions from Heiken Ashi candle bodies and wicks, then applies a linear regression calculation to the resulting net-volume series. It marks a long bias when the trend conditions are bullish and the calculated series is positive, and a short bias when bearish conditions coincide with a negative reading. The description says the tool is intended to identify timeframe-specific shifts in bias. It provides no performance results, and the volume measure is derived from candle geometry rather than direct trade-side data; its signals therefore need independent evaluation and should not be treated as validated forecasts.

Key ideas

• Trend direction is defined by the ordering of several moving averages and a range-based band.
• Heiken Ashi candle geometry is used to estimate bullish and bearish volume fractions.
• The direction of a regressed net-volume measure must agree with the moving-average bias for a signal.
• The script marks conditions on a chart but provides no quantified strategy performance evidence.
• The volume estimate is an indirect proxy based on candle shape and total volume.

Tags

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