I would like a signal to be painted when the following conditions are met.
Buy
- Price has set a new high, as defined by price breaking through a previous high semaphore. We can assume that Heiken Ashi is green here.
- Price has rallied back towards that semaphore, defined by Heiken Ashi turning red.
- Heiken Ashi then turns green once again.
- A signal should now paint.
Sell
- Price has set a new low, as defined by price breaking through a previous low semaphore. We can assume that Heiken Ashi is red here.
- Price has rallied back towards that semaphore, defined by Heiken Ashi turning green.
- Heiken Ashi then turns red once again.
- A signal should now paint.
If we could, instead of using arrows, just have a red dot paint above a signal candle and a green dot paint below a signal candle. An illustrated example is below for a short signal.
Price first sets a low semaphore. Price then breaks that low. Price then rallies back towards that break, Heiken Ashi turning white. Heiken Ashi then turns red, representing a continuation. On the first vertical line a signal should paint. Also, the second vertical line at 18:00 is a valid signal to the short side as well.
Just so you know, the SL should be placed behind the high of the Heiken Ashi rally, your TP should be a certain multiple of that away, and it would be wise to move to BE when price approaches and stalls at the low made before the rally back towards the break. Only trade during volatile sessions (think Frankfurt).