Yellow candle

Heikin-Ashi Momentum Breakout (Yellow Candle Indicator)
Overview:
The Yellow Candle Indicator is a technical analysis tool designed to identify potential trend reversals or momentum shifts by combining Heikin-Ashi price action with a Simple Moving Average (SMA) and Rate of Change (ROC) filter.
This script is specifically engineered to filter out market noise and highlight high-probability entry points when price action crosses its mean value under controlled volatility.
Methodology:
The script utilizes request.security to fetch data from a Heikin-Ashi candlestick perspective, regardless of the chart type you are using. It relies on three core conditions to plot a signal:
1. Mean Reversion Cross: It detects a crossover between the Heikin-Ashi Close and a short-term SMA.
2. Momentum Constraint: It uses the Rate of Change (ROC) to ensure the move isn't overextended. If the ROC is below the user-defined limit, it confirms a stable breakout.
3. Breakout Level: Once a "Yellow Candle" is identified, the script plots a horizontal breakout line based on the Heikin-Ashi High of that specific candle, serving as a dynamic resistance level.
Key Features:
• Heikin-Ashi Integration: Optimized for smoother trend identification.
• Customizable Momentum Filter: Users can adjust the mom_limit to suit different market conditions.
• Visual Breakout Lines: Automatically plots the breakout level for easier trade management.
• Alert Ready: Includes a built-in alert condition for real-time notifications.
Usage Tip:
This indicator is best used on trending timeframes (15m, 1h, 4h). Traders often look for a candle close above the yellow line as a confirmation for a bullish continuation.