RHA Cloud & Average Line (TradingFrog)

Main Features and Special Characteristics
The RMA-Hybrid Candles are a proprietary development by (TradingFrog).

The indicator generates two alternative candle series based on a unique hybrid algorithm developed specifically for this indicator. This specially designed RMA-Hybrid algorithm smooths market movements on multiple levels and visualizes trends and trend reversals more clearly than classic candlesticks.

1. RMA-Hybrid Candles (Custom Formula Candles)
The alternative candles are calculated using a proprietary logic and provide a particularly smoothed representation of market movements.


Code snippet:

plotcandle(my_open, my_high, my_low, my_close, color = my_close >= my_open ? bullColor : bearColor, title = 'Formula Candles')

2. Heikin-Ashi Candles for Additional Trend Smoothing
In addition to the RMA-Hybrid candles, Heikin-Ashi candles are also displayed to make trend changes and trend strength even clearer.

Code snippet:

plotcandle(ha_open, ha_high, ha_low, ha_close, color = ha_close >= ha_open ? color.lime : color.red, title = 'Heikin Ashi Candles')

3. Pivot-Based Average Lines

Based on the alternative candles, pivot highs and lows are automatically detected and connected. From this, average lines are calculated, which serve as dynamic support and resistance lines.

Code snippet:

avgH = array.size(phArr) >= 5 ? array.avg(array.slice(phArr, 0, 5)) : na
plot(avgH, color = color.red, style = plot.style_line, linewidth = 2, title = 'Average Low Line (Custom Candles)')

4. Kumo Cloud (Ichimoku Cloud) as Trend Filter

The classic Ichimoku Cloud is calculated on the raw data and visualized as a colored cloud. It serves as a trend filter and highlights important support and resistance zones.

Code snippet:

fill(plot(senkouSpanAProjected, ...), plot(senkouSpanBProjected, ...), color = cloudColor, title = 'Kumo Cloud')

5. Flexible Box Size Control
The size of the alternative candles can be dynamically controlled via the ATR indicator or set manually to adjust the sensitivity for different markets.

Code snippet:

box_size = modus == 'ATR' ? atr * multiplikator : feste_boxgroesse

6. Automatic Signal Logic for Long and Short Signals

The indicator combines several criteria to automatically generate long or short signals. A signal appears only when all conditions are met simultaneously. This increases the reliability of the signals and helps to avoid false breakouts.

When does a signal appear?

Long Signal:

A long signal appears when

the Ichimoku Kumo Cloud indicates an uptrend (is_cloud_bull),
the current price is above the cloud (above_cloud),
and both the RMA-Hybrid candles and the Heikin-Ashi candles are bullish (green) (all_green).
Short Signal:

A short signal appears when

the Ichimoku Kumo Cloud indicates a downtrend (is_cloud_bear),
the current price is below the cloud (below_cloud),
and both the RMA-Hybrid candles and the Heikin-Ashi candles are bearish (red) (all_red).
Why does a signal appear?

A signal is generated because all major trend and momentum filters point in the same direction. This prevents signals from being generated against the prevailing main trend. The combination of trend filter (cloud), price position, and candle direction ensures high signal quality.

Code snippet:


long_signal = is_cloud_bull and above_cloud and all_green
short_signal = is_cloud_bear and below_cloud and all_red
var int signallage = 0
if long_signal and signallage != 1
signallage := 1 // Long signal is set
if short_signal and signallage != -1
signallage := -1 // Short signal is set
Summary:

A signal appears when trend, price position, and candle direction all align – ensuring entries are only made during the strongest trend phases.

Conclusion:

The “RHA Cloud & Average Line (TradingFrog)” indicator combines innovative price visualization, classic trend filters, and dynamic support/resistance lines in one tool. It assists traders in identifying clear trend and reversal points and making trading decisions based on a broad technical foundation.