Ashi
Implementing Heiken Ashi CandlesKEY POINTS:
Heikin-Ashi is a candlestick pattern technique that aims to reduce some of the market noise, creating a chart that highlights trend direction better than typical candlestick charts.
The downside to Heikin-Ashi is that some price data is lost with averaging, which could affect risk.
Long down candles with little upper shadow represent strong selling pressure. Long up candles with small or no lower shadows signal strong buying pressure.
-----------------------------------------------------------------
When paired with risk management tools, trading indicators can give you a clear insight into price movements. Heiken Ashi candlesticks resemble a typical Japanese candlestick, but several details differ from the traditional candlestick chart.
Every Heiken Ashi candlestick has an upper candlewick, a shadow (lower candlewick) and a body – much like the Japanese candlesticks.
However, a bar in the Heiken Ashi starts from the middle of the one before it and not where the previous one closed-a significant distinction.
Each candle has a high, low, open and close, and thus the Heiken Ashi formula has four segments.The opening level is the midpoint of the previous bar; the Close of each bar is the average of high, low, open and close.
If you’re aiming to catch persistent trends, then Heiken Ashi will be valuable.
NOTE:
However, day traders who need to exploit quick price moves may find Heikin-Ashi charts are not responsive enough to be useful. Also, due to no price gaps within Heikin-Ashi candlestick charts, risk management is harder to monitor. Using additional methods to watch risk is advised.
The formula for calculating Heikin-Ashi candlesticks is as follows:
Open= (Open of previous bar+ Close of previous bar)/2
Close = (Open + Close + High + Low)/4
High = the Maximum Price Reached
Low = Minimum Price Reached
*Hope this helped refresh your knowledge of Heikin-Ashi candlesticks or showed you a new trading strategy to use.
Heikin Ashi MA with AUDCADOn 1hour chart, I'm waiting for PA to break and hold above the 6 SMA. This will indicate at least a potential bottom to then monitor for a possible buy
-------------------------
Please don't forget to FOLLOW, LIKE, and COMMENT ...
If you like my analysis:)
Trade Safe - Trade Well
Regards,
Michael Harding 😎 Chief Technical Strategist @ LEFTURN Inc.
RISK DISCLAIMER
Information and opinions contained with this post are for educational purposes and do not constitute trading recommendations. Trading Forex on margin carries a high level of risk and may not be suitable for all investors. Before deciding to invest in Forex you should consider your knowledge, investment objectives, and your risk appetite. Only trade/invest with funds you can afford to lose.
My simple Double Up strategy using Heiken Ashi candlesUSE the smoothed HA Candles indicator located in the indicator list. Combine that with the MACD and Bollinger Bands. Look for crossovers in the MAC D for Entry points on the 15 minute Time Frame. Riding momentum of the trend direction confirmed by the Heiken Ashi Trend color. For example if the HA candles are showing RED and price is beneath the 0.00 Line on the MAC D you are in a downtrend. using that knowledge wait for the blue MACD line to cross back up over the red line showing an uptrend move. COnfirm that move by seeing price action bounce off the bottom BOLLINGER bands band. once price in the HA CAndles turns green wait for the 2nd or 3rd HA candle to form. at that point price should be ABOVE the 0.00 line on the MACD signaling a strong move to the upside. somewhere in that location is your opportunity for an entry as well knowing it will be a strong move up. Using proper risk management set a SL at a resonable spot giving your TP no less than a 15 to 20 pip move. once that move has completed do the same in the opposite direction. DO NOT EXIT THE 1st MOVE UNTIL THE GREEN CANDLES SHOW AT LEAST 3 RED... always watching price action for major moves use the HA candles for further confirmation to either take TPs, add 2nd entries and ultimately exiting the trade... HAve fun and good luck
More room to run in TQQQBullish heiken ashi close for entry signal
I got about 2/3 of the position I wanted to and it continued to run after hours.
Sell signal is first red heiken ashi or we will sell 10% of position at 190.52(+4% gain). Additional take profits at +6%, +8%, +10% and +12% if we get there.
Tomorrow, if at any time we go below today's close (183.19) but stay in a bullish daily heiken ashi, I will add more.
TQQQ long swing trade entry off- heiken ashi strategyShortly after bouncing off the 21 day moving average, we got a buy signal.
Closing price was 164.74
1st Take Profit (10% of position @ 4%) = $171.33
2nd Take Profit (10% of position @ 8%) = $177.92
Exiting on 1st red heiken ashi or 9th green. No stop loss, chart shows 12.3%, this is max single trade drawdown of this strategy from 2010-2020, in order to show max risk.
Let's try again! Will Tech Join the Reopening Trade? ContinuedI am reposting my trade from November 24th that is still active.
So far we have hit our 12% price target twice, and we are awaiting the ninth bullish heiken ashi candle in a row on Monday, on which we will take 50% of the position off no matter what.
Heikin-Ashi + DMI + Pitchfork = A super easy trend system!I have been trading this system recently and have been surprised at how easy it is to trade with a predominant trend. Using a unique 3-indicator system composed of Heikin-Ashi + the DMI + Pitchforks allow a trader to reduce chart noise and stay in a trade until the trend has exhausted itself. The basic rules of the system include waiting for buy signals on both the Heikin-Ashi and the DMI and then exiting a trade when both the DMI and Heikin-Ashi have given sell signals. The Pitchforks serve as hidden support and resistance and help the trader with placing stop losses based on swing points of the candles and the next nearest pitchfork support lines to minimize chances of stops being triggered. The Pitchforks are also useful for identifying potential reversal zones to enter and exit trades if a trader notices particular pitchfork lines support price more significantly than others. Extra layers of support/resistance confluence can be added with Fibonacci Retracements and Extensions/Projections at these potential price reversal zones. I personally do this myself but the chart does get a bit cluttered and was hard to show clear entrance/exits with them included on here in this photo.
I personally use this on shorter time frames (3min) and it is just as accurate, however, TradingView requires a minimum 15-min resolution to post an idea. I imagine, as with all trades, the longer the time frame the stronger the signals, and the shorter the choppier the trades could get with being stopped out. While I have not tested this extensively, reversing this system for a short does work as well (data not shown on this chart). I have not tested longs or shorts on futures or Forex, so YRMV, and I would suggest testing extensively before implementing on those markets.
Illustration of this system can be seen on $FUV on the 15min chart. It shows two trades, first with a trade of 51% profit and a second of 24%. Average return over two days was 37.5% profit.
Pros of this system:
Very easy to use to identify and trade in the direction of the predominant market trends
Makes it easy to identify Elliot Waves, XABCD, or ABCD market geometry setups due to the nature of the Heikin-Ashi Candles
Ample noise reduction for "nervous" or new traders to make sure they catch the most of a trade trend with easily identifiable entrances and exits
PDT traders may find this system on longer periods/for swings more agreeable than day trading since it minimizes number of trades and maximizes potential return
Traders with full time jobs may find this more agreeable as it is a "set-it and forget it" type of system where they can schedule alerts/exits on the DMI cross over threshold to focus on other important things
Cons of this system:
Trading during ranged markets can lead to being stopped out or quickly lost profits (additional period length or higher level can minimize this risk, see below)
Missing out on "perfect" entry and exits due to combining two lagging indicators
Heikin-Ashi does not represent "true" chart price and it is recommended to add the real stock price on the chart somehow or have broker open with true price to not miss a potential entrance/exit if price reverses quickly/strongly
System Settings:
Heikin-Ashi = Standard
DMI length = 5 period, 20 level (can adjust both period and level higher or lower depending on needs of the trader. Longer = less profit but stronger signals; shorter = max potential profit but more frequent trading/more chop).
Pitchfork = Schiff (change angle more vertical to Modified Schiff or Original as trend goes outside of Schiff Fork if needed. I prefer to just clone the Schiff and move it higher or lower above the main fork since I trade corrections).
GBP/JPY bearish on the 15 minuteHere we see GBP/JPY price having some loss of momentum at a trendline resistance
R2R ratio 2.5
Comment down below your thoughts...
Weis Wave with Heikin-Ashi Trend TraderHi all,
This is my first post on Trading View so I hope I lay this outright.
What we have here is Heikin-Ashi candles with a Weis Wave indicator which triggers buy and sell signals. The strategy works best on 5 min chart.
The Heikin-Ashi is important for the volume indicator to work properly in this case
I have had issues where the entry and exit price of the trades changes due to the issues of backtesting with Heikin-Ashi so...
Does anyone know how I can stop the entry and exit price changing in a backtest? Any comments for constructive discussion would be appreciated.
Thanks!
ETHUSDT SHORT - > LONG FORECAST ENGLISHDo not underestimate the power of the H-A candles. Trend looks to have run it's course.
Bearish trajectory to long target of the whale wars favorite, 469.
Best of luck, live long and profit.
Feel free to donate TradingView tokens if you find this useful, those are cool.
USDollar Index - Holding LongThe US Dollar turned bearish earlier today, with the price falling below 50% of yesterday's trading range. However, as the New York market close approached, the price pushed back into the green. So if the daily Heikin-Ashi candle closes up at 5:00pm ET, I will continue to hold my long USD positions.