Heikin Ashi Supertrend Entries with a Price Buffer
Summary
This trend-following strategy calculates Supertrend using Heikin Ashi data and places stop-entry orders when the Supertrend direction changes. On a bullish flip, it sets a long stop above the Heikin Ashi high by a configurable percentage buffer; on a bearish flip, it sets a short stop below the Heikin Ashi low by the same method. The supplied defaults are an ATR length of 10, a factor of 3.0, and a buffer of 0.05%. The Supertrend line is plotted with direction-based coloring.
The method aims to wait for price to move beyond a smoothed candle extreme after a trend change. The page includes strategy code and promotional explanatory text, but no backtest settings or performance evidence. Heikin Ashi values are transformed prices, and the strategy does not provide a separate exit or stop-loss rule in the shown code. The buffer may filter some marginal entries, but the material does not establish that it improves results or avoids whipsaws.
Key ideas
- Supertrend direction is computed from Heikin Ashi data using ATR-based settings.
- A bullish direction change triggers a long stop entry above the Heikin Ashi high by a percentage buffer.
- A bearish direction change triggers a short stop entry below the Heikin Ashi low by a percentage buffer.
- The supplied code does not show a separate exit rule or provide performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.