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VT TRADER: HEIKIN-ASHI CANDLES OSCILLATOR LONG TERM (HACOLT)

This Traders’ Tip is based on “Long-Term Trading Using Exchange Traded Funds” by Sylvain Vervoort in this issue. In the article, Vervoort introduces his heikin-ashi candles oscillator long term (HACOLT) indicator.

We’ll be offering the HACOLT indicator for download in our VT client forums at http://forum.vtsystems.com along with hundreds of other precoded and free indicators and trading systems.

The step-by-step instructions for recreating the HACOLT indicator in VT Trader are as follows:

1. VT Trader’s Ribbon → Technical Analysis menu → Indicators group → Indicators Builder → [New] button
2. In the General tab, input the following text into each corresponding text box:

   Name: TASC - 07/2012 - HACOLT
   Function Name Alias: tasc_HACOLT
   Label Mask: TASC - 07/2012 - HACOLT (%avg%,%CandleSize%,%LTAverage%) = %Hacolt%
   Placement: New Frame
   Data Inspection Alias: HACOLT

3. In the Input Variable(s) tab, create the following variables:

   [New] button...
   Name: avg
   Display Name: TEMA Periods
   Type: integer
   Default: 55
   [New] button...
   Name: CandleSize
   Display Name: Candle Size Factor
   Type: float (with bounds)
   Default: 1.1
   Min. Bounds: 0.01
   Max. Bounds: 5
   [New] button...
   Name: LTAverage
   Display Name: Shorting LT Average
   Type: integer
   Default: 60

4. In the Output Variable(s) tab, create the following variables:

   [New] button...
   Var Name: Hacolt	
   Name: (Hacolt)
   Line Color: blue
   Line Width: 2
   Line Type: solid

5. In the Horizontal Line tab, create the following horizontal lines:

   [New] button...
   Value: +100
   Line Color: red
   Line Width: thin
   Line Type: dashed
   [New] button...
   Value: +50
   Line Color: gray
   Line Width: thin
   Line Type: dashed
   [New] button...
   Value: 0
   Line Color: red
   Line Width: thin
   Line Type: dashed

6. In the Formula tab, copy and paste the following formula:

   {Provided By: Visual Trading Systems, LLC}
   {Copyright: 2012}
   {Description: TASC, July 2012 -  "Long-Term Trading Using Exchange Traded Funds" by Sylvain Vervoort}
   {File: tasc_HACOLT.vtscr - Version 1.0}
   ZlHa:= vt_Tema(haClose,avg,E) + (vt_Tema(haClose,avg,E) - (vt_Tema(vt_Tema(haClose,avg,E),avg,E)));
   ZlCl:= vt_Tema((H+L)/2,avg,E) + (vt_Tema((H+L)/2,avg,E) - (vt_Tema(vt_Tema((H+L)/2,avg,E),avg,E)));
   keep1:= SignalHold(haClose>=haOpen,2) OR If(C>=haClose,1,If(H>Ref(H,-1) OR L>Ref(L,-1),1,0));
   keep2:= (ZlCl-ZlHa)>=0;
   keeping:= (keep1 OR keep2);
   keepall:= keeping OR (Ref(keeping,-1) AND (C>=O) OR C>=Ref(C,-1));
   keep3:= (Abs(C-O)<(H-L)*CandleSize AND H>=Ref(L,-1));
   utr:= Keepall OR (Ref(keepall,-1) AND keep3);
   keep1:= SignalHold(haClose<haOpen,2);
   keep2:= (ZlCl-ZlHa)<0;
   keep3:= Abs(C-O)<(H-L)*CandleSize AND L<=Ref(H,-1);
   keeping:= keep1 OR keep2;
   keepall:= keeping OR (Ref(keeping,-1) AND (C<O) OR C<Ref(C,-1));
   dtr:= If(Keepall OR (Ref(keepall,-1) AND keep3)=1,1,0);
   upw:= dtr=0 AND Ref(dtr,-1) AND utr;
   dnw:= utr=0 AND Ref(utr,-1) AND dtr;
   Result:= If(upw,1,If(dnw,0,ValueWhen(1,upw+dnw,If(upw,1,0))));
   LTSell:= C < Mov(C,LTAverage,E);
   LTResult:= If(Result=1,1,If(Result=0 AND LTSell=1,0,PREV(0)));
   Hacolt:= If(Result=1,100,If(Result=0 AND LTResult=1,50,If(Result=0 AND LTResult=0,0,PREV(0))));

7. Click the Save icon in the toolbar to finish building the HACOLT indicator.

To attach the indicator to a chart, click the right mouse button within the chart window and select Add Indicator → “TASC - 07/2012 – HACOLT” from the indicator list.

A sample chart is shown in Figure 12.

FIGURE 12: VT TRADER, HEIKIN-ASHI CANDLES OSCILLATOR LONG TERM (HACOLT). Here, the HACOLT indicator is displayed on a EUR/USD four-hour candlestick chart.

To learn more about VT Trader, visit www.vtsystems.com.

Risk disclaimer: Past performance is not indicative of future results. Forex trading involves a substantial risk of loss and may not be suitable for all investors.

—Chris Skidmore
Visual Trading Systems, LLC
vttrader@vtsystems.com, www.vtsystems.com