Z-Score Heikin-Ashi Transformed for ThinkOrSwim

[samer800]

Author Message:
he Z-Score Heikin-Ashi Transformed (𝘡 𝘏-𝘈) indicator is a powerful technical tool that combines the principles of Z-Score and Heikin Ashi to provide traders with a smoothed representation of price movements and a standardized measure of market volatility.

The 𝘡 𝘏-𝘈 indicator applies the Z-Score calculation to price data and then transforms the resulting Z-Scores using the Heikin Ashi technique. Understanding the individual components of Z-Score and Heikin Ashi will provide a foundation for comprehending the methodology and unique features of this indicator.
More Details : https://www.tradingview.com/v/MFW8vsmU/

CODE:

#// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
#https://www.tradingview.com/v/MFW8vsmU/
#// © QuantiLuxe
#indicator("Z-Score Heikin Ashi Transformed", "{?} - ? ?-?", false)
# converted by Sam4Cok@Samer800    - 07/2023
declare lower;
#f_z(src, len) =>
script f_z {
    input src = close;
    input len = 21;
    def mean = Average(src, len);
    def dev = StDev(src, len);
    def f_z = (src - mean) / dev;
    plot out = f_z;
}
input Zperiod = 21;            # 'Z Period'
input showSignals = yes;
input ReversionThreshold = {"1", default "2", "3"};    # "Reversion Threshold"
input showMovAvgLine1 = yes;
input movAvgLength1 = 50;
input showMovAvgLine2 = yes;
input movAvgLength2 = 150;

def na = Double.NaN;
def last = isNaN(close);

def revt;
Switch (ReversionThreshold) {
Case "1" : revt = 1;
Case "2" : revt = 2;
Case "3" : revt = 3;
}
#-- Colors
DefineGlobalColor("colup", CreateColor(255,242,204));
DefineGlobalColor("coldn", CreateColor(111,168,220));
DefineGlobalColor("colema1", Color.CYAN);
DefineGlobalColor("colema2", Color.MAGENTA);
DefineGlobalColor("low", CreateColor(255,214,232));
DefineGlobalColor("dlow", Color.PLUM);

def o_z = f_z(open, Zperiod);
def h_z = f_z(high, Zperiod);
def l_z = f_z(low, Zperiod);
def c_z = f_z(close, Zperiod);

def haClose = (o_z + h_z + l_z + c_z) / 4;
def haOpen = CompoundValue(1, (haOpen[1] + haClose[1]) / 2, (o_z + c_z) / 2);
def haHigh = Max(h_z, Max(haOpen, haClose));
def haLow = Min(l_z, Min(haOpen, haClose));
#def ohlc = (haClose + haOpen + haHigh + haLow) / 4;

def haColor = if haClose > haOpen then 1 else
              if haClose < haOpen then -1 else 0;
def OpenUp = if haColor > 0 then haOpen else na;
def OpenDn = if haColor < 0 then haOpen else na;

# Plot the new Chart
AddChart(high = if haColor > 0 then haHigh else na , low = haLow , open = haClose,  close = OpenUp,
         type = ChartType.CANDLE, growcolor =  GlobalColor("colup"));

AddChart(high = if haColor < 0 then haHigh else na, low = haLow , open = OpenDn,  close = haClose,
         type = ChartType.CANDLE, growcolor =  GlobalColor("coldn"));

plot EMA1 = if showMovAvgLine1 then ExpAverage(haClose, movAvgLength1) else na;
plot EMA2 = if showMovAvgLine2 then ExpAverage(haClose, movAvgLength2) else na;
EMA1.SetDefaultColor(GlobalColor("colema1"));
EMA2.SetDefaultColor(GlobalColor("colema2"));

plot zero = if last then na else 0;    # "Mid Line"
zero.SetStyle(Curve.SHORT_DASH);
zero.SetDefaultColor(Color.DARK_GRAY);

def max = if last then na else 4;
def hh = if last then na else 3;
def lh = if last then na else 2;

DefineGlobalColor("high", Color.DARK_GRAY);
DefineGlobalColor("dhigh", Color.WHITE);
AddCloud(hh, lh, GlobalColor("dhigh"));
AddCloud(max, hh, GlobalColor("high"));

def min = if last then na else -4;
def ll = if last then na else -3;
def hl = if last then na else -2;

AddCloud(hl, ll, GlobalColor("dlow"));
AddCloud(ll, min, GlobalColor("low"));

def dn = haHigh[1] < haHigh[2];
def up = haLow[1] > haLow[2];

plot SigUp = if !showSignals then na else
             if (haHigh > revt and haHigh < haHigh[1] and !dn) then haHigh + 0.75 else na;    # "OB"
plot SigDn = if !showSignals then na else
             if (haLow < -revt and haLow > haLow[1] and !up) then haLow - 0.75 else na;       # "OS"

SigUp.SetPaintingStrategy(PaintingStrategy.SQUARES);
SigDn.SetPaintingStrategy(PaintingStrategy.SQUARES);
SigUp.SetDefaultColor(Color.GREEN);
SigDn.SetDefaultColor(Color.RED);

#--- END of CODE

 

[MagicQuotes]

@samer800// In my experience (just downloaded to my TOS) this provides an Excellent addition to the already existing Z score indicator on TOS. The additional signals in a cloud formation with the Reversal dots are great visual add to the "tool box" for the ardent tape price action reader. It does a great job of summarizing the order flow without the Bid Ask "brownian type movement" that is so popular with the Order Flow Cult movement.. IT PRINTS OUT EVEN ON A TICK CHART!, excuse the capital letters, as unlike the $Tick and $TIKND (which do not print on tick based chart for the futures trade )the HeikinAshi transformed indicator can be used for both Time based and intraday Tick charts.. Congratulations . Gratitude from MagicQuotes. Best to all on the thread

 

[MatthewA]

This is the true Z-score in the statistical sense...

 

[dperry2]

Could this please updated to allow the colors to be changed for the upper limit threshold?

The dlow and low allows the the oversold colors to be changed but there are no settings to change the overbought colors.

 

[MerryDay]

Could this please updated to allow the colors to be changed for the upper limit threshold?

View attachment 24101
The dlow and low allows the the oversold colors to be changed but there are no settings to change the overbought colors.

The code in the top post has been modified to allow overbought colors to be changed