From Mladen Rakic

Heiken Ashi Oscillator tends to have a lot of signals. So many signals that sometimes it is impossible to use it reasonably in trading. This version is attempting to bring that into reasonable bounds.

Instead of using the "regular" Heiken Ashi for oscillator calculations, this version is using the smoothed Heiken Ashi. That makes the number of false signals fall dramatically, and, when pre-smoothing is applied to Heiken Ashi, the lag is in acceptable bounds. That way it becomes a good trend assessment tool. Along with a signal line, you have multiple choices how to use this indicator in trading.