CoffeeShopCrypto HARSI 2022

What if you didn't need to wait for the RSI to go above 50 to go bullish for the RSI to go below 50 to go bearish?
What if you can see when a move in the market is just a liquidity trap?
What if you can use a vwap on something longer than a daily chart?
What if you wanted to have both Heiken Ashi candles and Japanese candles on your same chart without overlapping each other?
Did you know that even the RSI has hidden lines of support and resistance?

*********Ill be placing a full breakdown video in my profile about the script if you would rather see it in motion.*******

I'm happy to say that today's I present the release of the new version of the heikin-ashi RS (HARSI)I which is called

"The Coffeeshop Crypto HARSI"

The original HARSI is written by @JayRogers on an older Pinescript code and while it still works, Pine script continues to update their coding which is now up to version 5.
This new version of the HARSI (or rather the CSC-HARSI) is written in version 5 Pine-script. And I have developed it to be used with a secondary indicator that can give you much better returns on your trades. The second indicator is called "The Mass Effect Moving Average" and you can see it on my screen, however at the recording of this video, it is not released.
There are still a few tweaks I want to make before sending it off to Trading View so make sure to follow my profile, and you'll get the updates when it is published.

The Background:
I have been using the original HARSI indicator for about 3 months and doing a decent job getting good trades on it, however I felt it was lacking a few things so I decided to rewrite the code into version 5 Pine script and add in a few special features which you guys are going to love so stay tuned for the entire video.

(some of the dialog might look odd because this was also published to YouTube)

There is going to be a lot of information here and I'll try not to make a boring and Technically heavy vid and really keep this an exciting side for everybody so you can stick to it let's go.

Of course if there are any questions you can feel free to drop them in the comments below.
So now that the introduction and premise is over let's get on to the indicator.


-------------------THE CSC-HARSI Solves some problems the old one was missing-----------------------------------
- Heiken Ashi Plotted Candles with Open-High-Low-Close Smoothing that are individually adjustable.
What is Open-High-Low-Close individual smoothing?
In short, the Open High Low and Close are no longer all locked to a single number.
You can set the bar length of any of these, separately for any of the others.

For example: You may want to use a 10 period length for HIGH / 10 period for LOW / 21 period for Open / 50 period for close. You choose the length of each part of the candle as you like to your trading style. You don't need to follow these numbers. You can choose your own and note how the HA candles adjust on your oscillator.

- Stochastic RSI including k% and d% fill color (Stochastic RSI Ribbon) like the old version.
Stochastic RSI: is still the same
Included here is a color fill between the k% line and d% line to give you a quick visual of up or down trend. You can turn this on or off as you wish.
There is also a Stochastic RSI Length separate from the actual Stochastic Length to help smooth your ribbon.

- Relative Strength Index which we all know and love.
Relative Strength Index: now has moving averages tied to it.
We all know and love the RSI. By now most of you have been using it extensively so there is no need to go into an in depth description. But you have to see how the "RSI Moving Average PLUS'' works against this.

- Relative Strength Index Moving average (PLUS).
RSI Moving Average Plus: (LSMA and VWAP MA)
What is so PLUS about an RSI Moving average?
THE COMPARISON

The most recent update to the RSI gave us the ability to switch between a few moving averages to use against the RSI signal indicating a smoothed direction of trend and breaks in trend. But I felt the signal was still too slow and too much profit was lost waiting for a break in trend confirmation.
I'm sure you've seen it too. Price rises in a rally, goes way up and then starts turning downward. I felt we needed something to tell us to get IN / OUT sooner.

• RSI based - Least Squares Moving average.
  

This LSMA hugs price a bit more closely and when used on a strength oscillator, almost draws a straight line from trend start to end.
The lower you set the MA length, the faster you'll see breaks in trend.
This way when there is a RALLY up or down, you'll see the exit point faster, losing less $ in the wait time.

• RSI based - VWAP
  

Use the VWAP MA as your 50 level. Previously you would go long only when RSI breaks above 50 and go short only when RSI breaks below 50. Now you can go long or short when it breaks above or below the level of the VWAP (Especially at the Mid Band Levels noted in the next description)
One important factor to note: When using the VWAP Moving average, it is locked to the length of the RSI. So you can not have an VWAP MA length different from your RSI length. RSI controls the VWAP MA.

- The Hidden Lines of Support and Resistance.
It comes with the use of a Vwap as a moving average which is used by mutual funds / pension funds / institutional traders, as well as day traders.
Watch the video and you'll see my explanation of the hidden lines of support and resistance at the 40 and 60 levels.
(Upper Mid Band / Lower Mid Band)
I have noticed that in each 10 of the levels of the RSI scale, both RSI and Heiken Ashi candles react to hidden areas. These areas present mainly at the 40, 50, and 60 level. I decided to plot these candles and color code them to this indicator as I am conducting a study which I will present on entries and exits at these levels. I still have more backtesting to do on it.

In another video I'll present to you HOW I do entries and exits using this indicator. Today's video is strictly about the indicator itself.

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----------------------------CREDITS---------------------------
Lets start with the CREDITS:
@JayRogerswww.tradingview.com/u/JayRogers/
For originating the idea. A very cool guy whom I've had the pleasure of speaking with a few times. The code he wrote was via an older version of Pine-script and needed updating to Pine v5.
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A quick note of how i would enter and exit trades.

Additional Note from the CoffeeShop Crypto:
"Watching price action is one thing. And you can be great at it but it's easy to get caught in a liquidity trap or potential stop hunts. Obviously you won't enter a trade unless there is enough volume behind that to show there's actually TRUE momentum in the market, right?
Setting your RSI MA to VWAP means you can see when a candle closes above (going bullish) or below (going bearish)."
If you see price action going bullish on your chart and the RSI has a good move, you need to make sure your Heiken Ashi candle opens below the VWAP MA and closes above the VWAP MA. This means there is true volume in the trade.
If the Green HA candle never closes above the VWAP MA, you should not enter long.

Access to this indicator is granted upon your agreement to stay an active member of this community. If you are away too long, the indicator will delete itself from your chart. This is in place to help the community stay communal and collaborative.
There will no longer be "Ghosting" of indicator users.

by CoffeeShopCrypto