Line connecting average of candle open and close

[vasiche]

Hello, I hope somebody can help with a simple script. Please let me know if this is not the right place to ask.

I am looking to have a line on my chart that will connect the average of open/close of each candle. So it will take, for each candle, [open + close]/2 and connect those points for candles on the chart.

I intend to use this line to help me visualize magnitude and direction of an index (e.g., SPY, SPX) movement. This will ultimately assist in determining what options trading strategy I would like to apply (credit spreads, iron condors, iron flies, etc.).

Thank you!

 

[Fluideng]

Hello, I hope somebody can help with a simple script. Please let me know if this is not the right place to ask.

I am looking to have a line on my chart that will connect the average of open/close of each candle. So it will take, for each candle, [open + close]/2 and connect those points for candles on the chart.

I intend to use this line to help me visualize magnitude and direction of an index (e.g., SPY, SPX) movement. This will ultimately assist in determining what options trading strategy I would like to apply (credit spreads, iron condors, iron flies, etc.).

Thank you!

Try using a Heikin Ashi candle, Each candle opens with that same formula.

 

[halcyonguy]

Hello, I hope somebody can help with a simple script. Please let me know if this is not the right place to ask.

I am looking to have a line on my chart that will connect the average of open/close of each candle. So it will take, for each candle, [open + close]/2 and connect those points for candles on the chart.

I intend to use this line to help me visualize magnitude and direction of an index (e.g., SPY, SPX) movement. This will ultimately assist in determining what options trading strategy I would like to apply (credit spreads, iron condors, iron flies, etc.).

Thank you!

how many bars for the average?
what kind of average ?
will post something in 30...

 

[vasiche]

@Fluideng , good point but I completely forgot to mention that I am already using Heikin Ashi candles so I am looking for the averages line for such candles (not regular ones).

 

[vasiche]

how many bars for the average?
what kind of average ?
will post something in 30...

@halcyonguy, just 1 bar for the average, but would appreciate if it's possible to change than in the code (from 1 bar to X bars) for testing as I don't know which number of bars may be best. If it's too much logic/coding, then 1 bar is good enough!

Also, I am using Heikin Ashi candles (forgot to mention that) so is it possible to do that based on Heikin Ashi candle open/close? I don't know if TOS automatically detects that when a study (i.e., this averages line) is added to the chart or if the script needs to indicate that these are Heikin Ashi candles?

For example (made up numbers):
Heikin Ashi candle 1: open = 100, close 102. Average (100 + 102) / 2 = 101
Hekin Ashi candle 2: open = 101, close 103. Average (101 + 103) / 2 = 102
Heikin Ashi candle 3: open = 102, close = 103. Average (102 + 103) / 2 = 102.5
...
So the line would connect points on candles 1-3: 101 to 102 to 102.5.

(I put example of 3 candles to save space here, but the line would cover the entire chart time frame and work on various time frames for candles, e.g., 1 min, 5 min, 10 min.)

I am not sure if this is asking too much coding. Please let me know if so!

Thank you!

 

[halcyonguy]

EDIT
don't use this code. jump down to post #10 and use that
https://usethinkscript.com/threads...age-of-candle-open-and-close.7139/#post-68918


i don't use Heikin Ashi candles too often, but i imagine this will plot as you want.
you can go to study settings and
...change average length. default is 1
...change average type. default is simple
...show the line values , under the candles

# midline_01

def mid = (open + close)/2;

input avg1_len = 1;
input avg1_type =  AverageType.simple;
def ma1 = MovingAverage(avg1_type, mid, avg1_len);

plot avg = ma1;
avg.SetDefaultColor(Color.yellow);
# avg.setlineweight(1);
# avg.hidebubble();

input show_line_value = no;
plot v = ma1;
v.SetPaintingStrategy(PaintingStrategy.VALUES_BELOW);
v.SetDefaultColor(Color.gray);
#

 

[vasiche]

@halcyonguy , thank you for the script! It looks like it is not taking Heikin Ashi candles into account so it is painting the line using regular candle values. Is there a way, if you able to and have time, to convert open and close values to be those of Heikin Ashi candles?

Heikin Ashi candles are drawn as follows: https://corporatefinanceinstitute.com/resources/knowledge/trading-investing/heikin-ashi-technique/

Current Heikin Ashi (HA) candle open =[HA Open (-1) + HA Close (-1) ] / 2
Current Heikin Ashi (HA) candle close = [Open(0) + High(0) + Low(0) + Close(0)] / 4

From another website:

1. The Heikin-Ashi Close is simply an average of the open, high, low and close for the current period.

HA-Close = (Open(0) + High(0) + Low(0) + Close(0)) / 4

2. The Heikin-Ashi Open is the average of the prior Heikin-Ashi candlestick open plus the close of the prior Heikin-Ashi candlestick.

HA-Open = (HA-Open(-1) + HA-Close(-1)) / 2

My guess, some variables may need to be defined with the formulas above and then those variables used in the "def mid" statement in the script?

 

[halcyonguy]

yes, i made it on a normal chart. i was hoping that if this study was used on a Heikin Ashi chart, it would work, that the open and close used for HA candles would be used in the study, and draw the line as desired. did you try it ?

 

[vasiche]

@halcyonguy, I added and tried the script/study and on Heikin Ashi candles, it doesn't seem to be using their values and uses normal candle values. I am attaching a screen print (changed line color on it) and the line goes to the top of Heikin Ashi candles which is actually how the open of such candles is determined (using the formulas from above).

https://imgur.com/a/u3RUmH0

 

[Fluideng]

@halcyonguy, I added and tried the script/study and on Heikin Ashi candles, it doesn't seem to be using their values and uses normal candle values. I am attaching a screen print (changed line color on it) and the line goes to the top of Heikin Ashi candles which is actually how the open of such candles is determined (using the formulas from above).

https://imgur.com/a/u3RUmH0

Try this:

def haclose = (open + high + low + close) / 4;
def haopen = CompoundValue(1, (haopen[1] + haclose[1]) / 2, (open[1] + close[1]) / 2);

def mid = (haopen + haclose)/2;

input avg1_len = 1;
input avg1_type =  AverageType.simple;
def ma1 = MovingAverage(avg1_type, mid, avg1_len);

plot avg = ma1;
avg.SetDefaultColor(Color.yellow);
# avg.setlineweight(1);
# avg.hidebubble();

input show_line_value = no;
plot v = ma1;
v.SetPaintingStrategy(PaintingStrategy.VALUES_BELOW);
v.SetDefaultColor(Color.gray);
#

 

[vasiche]

@Fluideng, that worked perfectly. Below is a screen shot of the chart with Heikin Ashi candles and the line.

Thank you @Fluideng and @halcyonguy with this script/study!

https://imgur.com/a/Zv5cpEB