SVEHaTypCross

Description

The SVEHaTypCross strategy is a trading system which combines price plot coloring, moving averages, and Buy/Sell triggers. These three elements are based upon Heikin Ashi values. Two EMAs (exponential moving averages) are calculated for the system: EMA of typical price and that of average price of Heikin Ashi bars. These averages form two plots which produce Buy and Sell signals for the strategy.

A Buy signal is given when the first average crosses above the second at a bullish bar; conversely, a Sell signal is given when the crossover of opposite direction happens at a bearish bar. These signals also divide the price plot into trending sections: those between consecutive Buy and Sell signals are considered uptrend and colored green while those between consecutive Sell and Buy signals are considered downtrend and colored gray. The plots and coloring system are added to this strategy in order to facilitate your decision whether to use the default parameters or to adjust them.

Input Parameters

Parameter Description
typical length Defines period on which EMA of typical price is calculated.
ha length Defines period on which EMA of Heikin Ashi average price is calculated.
paint bars Defines whether or not to apply the coloring system.

Plots

Plot Description
AvgTyp The EMA of typical price.
AvgHAC The EMA of Heikin Ashi average price.

Further Reading

1. "An Expert of a System" by Sylvain Vervoort. Technical Analysis of Stocks & Commodities, October 2013.

Backtesting is the evaluation of a particular trading strategy using historical data. Results presented are hypothetical, and there is no guarantee that the same strategy implemented today would produce similar results.

Technical analysis is not recommended as a sole means of investment research.

For educational purposes only. Not a recommendation of a specific security or investment strategy.