Heikin-Ashi Reversal Strategy (Python)

Heikin-Ashi candles smooth noise and highlight trend direction. A shift from a series of bearish HA candles to a bullish one, or vice versa, can indicate a change in momentum. This strategy trades those color flips and uses a percentage stop for protection. The logic calculates Heikin-Ashi values from regular candles. When the HA close crosses above the HA open after a bearish sequence, a long is taken. A cross below after a bullish run opens a short. The stop is placed a fixed percentage away from entry. The method is simple yet effective during choppy swings when traditional candlesticks are noisy.

• Entry Criteria: Heikin-Ashi candle changes color.

• Long/Short: Both.

• Exit Criteria: Stop-loss.

• Stops: Yes, percentage based.

• Default Values:

• CandleType = 15 minute

• StopLoss = 2% [*]Filters:

• Category: Reversal

• Direction: Both

• Indicators: Heikin-Ashi

• Stops: Yes

• Complexity: Basic

• Timeframe: Intraday

• Seasonality: No

• Neural networks: No

• Divergence: No

• Risk level: Medium