Heikin-Ashi Technique and NMA aka NRTR Trading system

NMA(Nick Moving Average) alias NRTR(Nick Rypock Trailing Reverse Trading system) uses Heikin-Ashi Technique.


Heikin-Ashi is a type of candlestick chart that shares many characteristics with standard
candlestick charts, but differs because of the values used to create each bar. Instead of
using the open-high-low-close (OHLC) bars like standard candlestick charts, the Heikin-Ashi
technique uses a modified formula:


Close = (Open+High+Low+Close)/4
Open = [Open (previous bar) + Close (previous bar)]/2
High = Max (High,Open,Close)
Low = Min (Low,Open, Close)


The above formula can be achieved by the following afl code

HACLOSE=(O+H+L+C)/4;
HaOpen = AMA( Ref( HaClose,  -1 ),  0.5 );
HaHigh = Max( H,  Max( HaClose,  HaOpen ) );
HaLow = Min( L,  Min( HaClose,  HaOpen ) );
Chart for Nifty NMA Daily charts shown above

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Rajandran R

Rajandran is a trading strategy designer and founder of Marketcalls, a hugely popular trading site since 2007 and one of the most intelligent blog in the world to share knowledge on Technical Analysis, Trading systems & Trading strategies. More From Rajandran R »

7 comments… add one

  • Vivek January 26, 2010, 7:26 pm

    You are verymuch inovative in exploring ideas and relenlessly sharing ur knowledge with lay people like me. It helps us to understand the intricacies in a simple manner. You are simply fabulous. I am one of your fan and silent student.In the NMA chart above are two lines (blue and green). I could not know if they are reprenting MAs? I will be highly obliged if can elaboratr how thr up and down arrows are drawn or calculated.thanks and best regards.Vivek

    Reply
  • Rajandran Rajarathinam January 26, 2010, 7:44 pm

    Yeah the blue and green line represents only the moving averages 8 EMA and 34 EMA. Its just used for identifying support/Resistance. But it doesnt play any role in Buy/Sell Signal

    Reply
  • sri March 4, 2010, 9:05 pm

    rajandran,

    can u provide afl for this ..

    tks n rgds
    sri

    Reply
  • John August 17, 2010, 9:06 am

    Where can I go to see this indicator on the QQQQ chart? Nick Rypock Trailing Reverse Trading system?

    Thx
    John

    Reply
  • kirtan raut October 25, 2010, 9:05 pm

    Hi I am using Ichimoku Cloud strategy with Chartnexus EOD version.I was using paid EOD software before this now it will save me the cost.I have recommended this software and your site to my friends and they are happy and amazed with the reading material available on this site.I commend u r efforts and time taken to make these things available freely.

    Reply
  • Rajandran R October 26, 2010, 12:37 pm

    Thanks Kiran!

    Reply

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    • Rajandran is a Market Analyst and founder of Marketcalls, one of the most intelligent blog in the world to share knowledge on Technical Analysis, Trading systems & Trading strategies.