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

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

Related Readings and Observations

  • Heikin-Ashi Supertrend – Amibroker AFL code Heikin Ashi Supertrend is a Volatility based trend following indicator which uses Heinkin Ashi + Supertrend method to plot the indicator. Heikin means "average" and "ashi" means "pace". […]
  • AFL to Switch between Heikin-Ashi and Normal Candle A small funtionality has been added to the NMA Swing Explorer charts to switch between Heikin-Ashi Candle and Normal Candle. Now Just right click on the charts and select Parameter […]
  • Things You Need to Know About VWAP In finance terms, volume-weighted average price (VWAP) is defined as the ratio of the value traded to total volume traded over a particular time horizon (usually one day). It is a measure […]
  • Rotation Factor – Amibroker AFL Code Rotation Factor is a sentimental indicator used in Market Profile to Indicate who is control (Buyers/Sellers) in the market for the day. If the rotational factor prints positive values […]


  1. Vivek says

    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

  2. Rajandran Rajarathinam says

    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

  3. kirtan raut says

    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.

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