Vervoort Heiken Ashi Candlestick Oscillator

Heiken-Ashi Candlestick Oscillator (HACO), by Sylvian Vervoort, is a digital oscillator version of the colored candlesticks .

Explanation from Vervoort:

"HACO is not meant to be an automatic trading system, so when there is a buy or sell signal from HACO, make sure it is confirmed by other TA techniques. HACO will certainly aid in signaling buy/sell opportunities and help you hold on to a trade, making it more profitable. The behavior of HACO is closely related to the level and speed of price change. It can be used on charts of any time frame ranging from intraday to monthly."

HACO has 2 configurable length parameters - "UP TEMA length" and "Down TEMA length". Vervoort suggests having them the same value.

I have also added an option to color the bars (overlay mode).

More info:
Trading with the Heiken-Ashi Candlestick Oscillator - Sylvian Vervoort

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In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

// @author LazyBear 
// List of all my indicators: 
study("Vervoort Heiken Ashi Candlestick Oscillator [LazyBear]", shorttitle="HACO_LB")
avgup = input(title="Up TEMA Length", defval=34, minval=1, maxval=100 ) 
avgdn = input(title="Down TEMA Length", defval=34, minval=1, maxval=100 ) 
overlayMode=input(defval=false, title="Overlay mode (color bars)?")

calc_tema(src, length) =>
	ema1 = ema(src, length)
	ema2 = ema(ema1, length)
	ema3 = ema(ema2, length)
	3 * (ema1 - ema2) + ema3

calc_zltema( src, length ) => 
	tma1 = calc_tema( src, length ) 
	tma2 = calc_tema( tma1, length ) 
	diff = tma1 - tma2 
	tma1 + diff  
haO = (ohlc4[1] + nz(haO[1]))/2
haC = (ohlc4+haO+max(high,haO)+min(low,haO))/4

upTMA1= calc_zltema(haC,avgup)
upTMA2= calc_zltema(upTMA1,avgup)
upDiff= upTMA1 - upTMA2
upZlHa= upTMA1 + upDiff
upTMA12= calc_zltema(hl2,avgup)
upTMA22= calc_zltema(upTMA12,avgup)
upDiff2= upTMA12 - upTMA22
upZlCl= upTMA12 + upDiff2
upZlDiff= upZlCl - upZlHa
upKeep1= (haC >= haO) and (haC[1] >= haO[1])
upKeep2= upZlDiff>=0
upKeeping= (upKeep1 or upKeep2)
upKeepAll= upKeeping or (nz(upKeeping[1]) and (close>=open) or close>=close[1])
upKeep3= (abs(close-open)<(high-low)*0.35 and high>=(low[1]))
upTrend= upKeepAll or (nz(upKeepAll[1]) and upKeep3)

dnTMA1= calc_zltema(haC,avgdn)
dnTMA2= calc_zltema(dnTMA1,avgdn)
dnDiff= dnTMA1 - dnTMA2
dnZlHa= dnTMA1 + dnDiff
dnTMA12= calc_zltema(hl2,avgdn)
dnTMA22= calc_zltema(dnTMA12,avgdn)
dnDiff2= dnTMA12 - dnTMA22
dnZlCl= dnTMA12 + dnDiff2
dnZlDiff= dnZlCl - dnZlHa
dnKeep1= haC<haO and (haC[1]<haO[1]) 
dnKeep2= dnZlDiff<0
dnKeep3= abs(close-open)<(high-low)*0.35 and low<=high[1]
dnKeeping= dnKeep1 or dnKeep2
dnKeepAll= dnKeeping or (nz(dnKeeping[1]) and (close<open) or (close<close[1]))
dnTrend= iff(dnKeepAll or (nz(dnKeepAll[1]) and dnKeep3)==1,1,0)

upw= dnTrend==0 and nz(dnTrend[1]) and upTrend
dnw= upTrend==0 and nz(upTrend[1]) and dnTrend
haco= iff(upw,1,iff(dnw,-1,nz(haco[1])))

plot(not overlayMode ? haco : na, style=columns, color=haco_c)
barcolor(overlayMode ? haco_c : na)
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