Rango HA

This script calculates the range of Heikin-Ashi candles and offers a unique perspective on the expansion and contraction of the smoothed price. The "Range Scale" option allows users to adjust the indicator's sensitivity for backtesting and comparison with other indicators.

Display:
Dynamically colored columns indicate changes in the range compared to the previous candle, differentiating between bullish and bearish for momentum and gray columns for weakness or exhaustion.

Analytical examples:

In this case the price tries to cross a previous low but it does so with grey candles and divergence in the oscillator, this is a possible bullish scenario and all that remains is to wait for a signal such as a bullish engulfing candle with ascending columns.


Here, two hypothetical trades are observed using the same strategy. The price struggles to break and remain above a previous high. We observe divergence in the oscillator and gray or low dango candles in the price, followed by a bearish engulfing candle that acts as a trigger. The same thing works in reverse in the bullish example seen on the right.


Another case where engulfing candles act as triggers that indicate an increase in momentum after signs of weakness.

I recommend using this indicator in conjunction with price action, as seen above, to identify weak movements and the beginnings of strong movements, relative to previous highs and lows. I add candle colors relative to the oscillator bar size to improve the clarity of the price reading, but I don't add signals to avoid cluttering the price display. Furthermore, if the signals aren't used in conjunction with other key levels, it can lead to poor decisions.
All images shown are on the M1 timeframe, but everyone can use whatever they like.

I hope it helps. If you want to make any changes or additions, please feel free to request them in the comments.

Good luck with your trading!