Trend Following15m CandlesComplexity: Beginner
Heikin-Ashi Smoothed Trend Rider
Filters out market noise using Heikin-Ashi candlestick transformations and initiates positions on consecutive flat-bottom candles in alignment with the 50 EMA.
Public & Generic Educational Strategy Notice: This strategy blueprint represents a publicly known mathematical formulation and standard technical analysis concept. Algo Software Innovations does NOT claim proprietary copyright, invention, or exclusive ownership over these formulas. You can adapt, customize, and deploy this logic to your private cloud VPS.
Mathematical Logic & Formula Formulation
HA_Close = (O+H+L+C)/4; HA_Open = (HA_Open_prev + HA_Close_prev)/2; Long = 2 Green HA with Flat Bottom + Price > 50 EMA
Deterministic Entry Rules
Long Entry (BUY)
- ✓Two consecutive Green Heikin-Ashi candles with Flat Bottoms (No lower shadow).
- ✓Close is ABOVE 50 EMA and RSI > 55.
Short Entry (SELL)
- ✓Two consecutive Red Heikin-Ashi candles with Flat Tops (No upper shadow).
- ✓Close is BELOW 50 EMA and RSI < 45.
Exit Criteria & Stop Loss Protection
Initial Stop LossLow of the entry Heikin-Ashi candle.
Target Profit2.0% - 3.5% smooth trend ride.
Risk/Reward Expectancy1 : 2.5
Strategy Configuration Specs
Market Segment:NSE Sectoral Indices & Midcap Stocks
Candle Timeframe:15m Candles
Risk-to-Reward Ratio:1 : 2.5
Throttling Compliance:≤ 10 OPS Enforced
Required TA-Lib Indicators:
Heikin-Ashi Candle TransformEMA (50, Close)RSI (14)
Risk Management Controls
- •Trailing stoploss ratchets with each new flat-bottom candle.
Target Trader Profile:Traders who struggle with emotional exits during noisy intraday swings.