Heikin-Ashi Supertrend Entries with a Percentage Buffer

Summary

This strategy calculates Supertrend direction from Heikin-Ashi data and places stop entries around the corresponding candle extreme when direction flips. A bullish flip sets a long trigger above the Heikin-Ashi high; a bearish flip sets a short trigger below the low. The buffer is a configurable percentage of that extreme, and ATR length and multiplier control the Supertrend calculation.

The document provides implementation details and a prose explanation, but no performance report or empirical evidence that the filters improve results. The displayed Supertrend line is the main chart output; the buffer trigger prices are used for orders rather than plotted as dedicated bands. Since Heikin-Ashi values are smoothed and differ from standard traded prices, execution behavior may diverge from the visual signal. The script also gives no explicit stop-loss, profit target, or position-sizing method, so those risk controls require separate consideration.

Key ideas

• Supertrend direction is calculated using Heikin-Ashi prices and configurable ATR settings.
• A bullish direction change submits a stop entry above the Heikin-Ashi high, adjusted by a percentage buffer.
• A bearish direction change submits a stop entry below the Heikin-Ashi low, adjusted by the same type of buffer.
• The script plots the Supertrend line but does not specify a separate protective stop or profit target.
• The document offers no backtest evidence for the strategy’s effectiveness.

Tags

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