GCM Heikin Ashi with Pivots

Title: GCM Heikin Ashi with Pivots
Description:
Overview

This indicator provides a powerful combination of trend visualization, precise reversal signals, and volume confirmation in a clean, customizable sub-chart. It is designed to help traders identify trend momentum using Heikin Ashi candles, pinpoint confirmed swing highs and lows (pivots), and spot surges in buying pressure with our unique Volume Rate-of-Change (VROC) highlighter.

The key feature of this script is its non-repainting pivot signals. A pivot high or low is only confirmed and plotted after a specific number of subsequent bars have closed, ensuring the signals are reliable and do not change after they appear.

Key Features

Heikin Ashi Sub-Chart: Displays smoothed Heikin Ashi candles in a separate pane to clearly visualize trend strength and direction without cluttering the main price chart.

Non-Repainting Pivot Signals: Uses ta.pivothigh and ta.pivotlow to identify confirmed swing points. The signals will not repaint or move once they are printed on the chart.

Smart Volume Spike Analysis (VROC): A Heikin Ashi candle will be highlighted in a distinct bright green (#2dff00) when the volume increases significantly on a bullish price candle. This "volume-confirmed" candle can signal strong conviction behind a move.

Complete Label Customization: Take full control over the look and feel of your signals:

Label Mode: Choose between "High & Low" (H/L) or "Buy & Sell" (B/S) to match your trading terminology.

Custom Colors: Set unique colors for both the high and low pivot labels.

Label Style: Select from various shapes like boxes, circles, diamonds, or squares.

Label Size: Adjust the size of the labels from Tiny to Huge for perfect visibility.

Adjustable Pivot Sensitivity: Fine-tune the pivot detection algorithm by setting the number of bars required to the left (strength) and right (confirmation) of a pivot point.

How to Use & Interpret the Signals

Assess the Trend with Heikin Ashi:

A series of green HA candles with little to no lower wicks indicates strong bullish momentum.

A series of red HA candles with little to no upper wicks indicates strong bearish momentum.

Look for Volume Confirmation:

A bright green highlighted candle signals a surge in buying pressure (VROC spike). This adds significant weight to bullish moves and can act as a leading indicator for a new leg up.

Identify Entry/Exit Points with Pivot Labels:

An "L" or "B" label marks a confirmed swing low. This is a potential buying opportunity, especially if it is followed by green Heikin Ashi candles and, ideally, a bright green VROC spike candle.

An "H" or "S" label marks a confirmed swing high. This is a potential selling/shorting opportunity, especially as HA candles turn red.

Example Strategy (High-Confluence)

A powerful way to use this indicator is to look for a sequence of events:

Wait for a "Buy" (B) or "Low" (L) signal to appear, confirming a bottom has likely formed.

Wait for the first bright green VROC spike candle to appear after the signal. This confirms that buyers are stepping in with conviction.

Consider an entry based on this high-confluence setup, using the swing low as a potential stop-loss area.

Settings Explained

Pivot Detection:

Left Bars (Strength): Number of bars to the left of a pivot. A higher number finds more significant pivots.

Right Bars (Confirmation): Number of bars to the right required to confirm a pivot. This creates a lag for reliability.

Volume Spike Detection (VROC):

Enable Volume Spike Highlighting: Turn the bright green candle highlight on or off.

VROC Length: The lookback period for calculating the volume's rate of change.

VROC Threshold %: The percentage volume must increase to trigger a highlight.

Label Customization:

Label Text Mode: Choose between "High & Low" or "Buy & Sell".

Label Color, Style, and Size: Full cosmetic control for the pivot labels.

Final Note

This indicator is a tool to aid in technical analysis and should not be used as a standalone trading system. Always use it in conjunction with other analysis methods, proper risk management, and a sound trading plan.

Enjoy!