Using AO, AC, and Heikin Ashi to Color Trend Zones

Summary

This indicator description explains a candle-coloring method that combines the Awesome Oscillator (AO), Accelerator Oscillator (AC), and optionally Heikin Ashi price data. Inputs include the data source, price, Heikin Ashi setting, fast and slow moving-average periods for AO and AC, the AC period, and a calculation mode that uses AO, AC, or both.

The method classifies direction from whether the selected oscillator line or lines point upward or downward. When AO and AC agree, the indicator marks a bullish or bearish zone; when they disagree in combined mode, it marks a neutral zone. Candle body direction then determines a shade within each zone, distinguishing bullish and bearish candles even when they occur against the zone direction. The document describes the indicator’s logic and shows two example configurations, using price and Heikin Ashi as sources. It provides no trading rules, backtest, or evidence that the color states predict returns, so it is best understood as a visualization aid rather than a validated standalone strategy.

Key ideas

• The indicator uses AO and AC direction to classify bullish, bearish, or neutral zones.
• Combined mode can produce a neutral zone when AO and AC disagree.
• Candle direction determines the color shade within each directional zone.
• The data source can be price or Heikin Ashi, with configurable oscillator periods.
• The description provides no performance evidence or complete trading system.

Tags

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