What up guys and welcome to the coffee shop. I have a special little tool for you today to throw in your toolbox. This one is a freebie. This is the Stochastic RS-Heiken-Ashi "The Stocashi" This is the stochastic RSI built to look like Heikin-Ashi candles. a lot of people have trouble using the stochastic indicator because of its ability to look very choppy at its edges instead of having nice curves or arcs to its form when you use it on scalping time frames it ends up being very pointed and you can't really tell when the bands turn over if you're using a stochastic Ribbon or you can't tell when it's actually moving in a particular direction if you're just using the K and the D line.
This new format of Presentation seeks to get you to have a better visual representation of what the stochastic is actually doing. It's long been noted that Heikin-Ashi do a very good job of representing momentum in a price so using it on something that is erratic as the stochastic indicator seems like a plausible idea.
The strategy is simple because you use it exactly the same way you've always used the stochastic indicator except now you can look for the full color of the candle. this one uses a gradient color setup for the candle so when the candle is fully red then you have a confirmed downtrend and when the candle is fully green you have a confirmed up trend of the stochastic however if, you a combination of the two colors inside of one candle then you do not have a confirmed direction of the stochastic.
the strategy is simple for the stochastic and that you need to know your overall trend. if you are in an uptrend you are waiting for the stochastic to reach bottom and start curving up. if you are in a downtrend you are waiting for the stochastic to reach its top or its peak and curve down.
In an uptrend you want to make sure that the stochastic is making consistently higher lows just like price should be. if at any moment it makes a lower low then you know you have a problem with your Trend and you should consider exiting. The opposite is true for a downtrend. In a downtrend you want to make sure you have lower highs. if at any given moment you end up with a higher high than you know you have a problem with your Trend and it's probably ending so you should consider exiting.
The stochastic indicator done as he can actually candles also does a very good job of telling you when there is a change of character. In that moment when the change of character shows up you simply wait until your trend and your price start to match up.
You can also use the stochastic indicator in this format to find divergences the same way you would on the relative strength index against your price highs and price lows so Divergence trading is visually a little bit easier with this tool.
The settings for the K percent D percent RSI length and stochastic length can be adjusted at will so be sure to study the history of the stochastic and find the good settings for your trading strategy.
Notas de Lançamento
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Per user request: made an adjustment adding the ability for users to change the color of the trend up and trend down. Cleaned up some erroneous code.
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Added additional variables to further customize the color. This way your start and end colors for bullish candles can be seperate from your start and end candles of your bearish candles.
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Corrected the issue of no lower wicks arriving on Bearish Candles.
****Im sure you guys didnt notice anyway but hey. we are only aliens****
Notas de Lançamento
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1. Adjusted user interface for a more cleaner look 2. Added an overbought and oversold area. 3. Added ability to color OB and OS area to match Dark-mode or Light-mode of TradingView charts.
Very useful indicator! I advice everyone to try this in their trading decisions!
MaxMaserati
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Whenever you publish a new script, I add them to my favourite with blink of my eyes without even read the description. All your scripts are awesome, simple, thoughtful and easy to understand. Awesome job.
CoffeeshopCrypto
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@A1000000DC, Thanks a lot "A1-10k" That tells me im doing it right. i know youve been following me for a long time. at least till i started publishing So almost a year. Thanks again
hope u stick around for the big reveal of when i release my website buddy. Its coming. REAL SOON
MaxMaserati
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@CoffeeshopCrypto, I can not wait for the big reveal. I like your honesty and simplified approach to trading with your indicators. Use them for confirmation on a daily basis with ICT.
SebasDAgos
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Hi Mr, really nice indicator, manyy thanks. How about set up ALERTS? Can you include them?
Muy buen indicador lo recomiendo muy pocos indicadores tienen todo lo que necesitas para tener exito en tus trades de futuros ! Gracias por traernos indicadores modernos!!
CoffeeshopCrypto
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@Kath-5MIN, im very happy you like it. the stochastic RSI has been an outdated tool for a long time. with its new appearance it does show you a lot more things
violarisjs
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I have a strategy where a significant piece of it is the stochastic rsi. Since obtaining your version my trading has become much clearer with less mistakes and a big savings in time looking. I just wanted to say thank you! Great work.
CoffeeshopCrypto
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@violarisjs, GREAT!! Glad all my hard work paid off. (well for you at least) HAHAHAHHA