Forex trading system "Heiken Ashi Trading"
Added: 2010-10-13 14:00:16 by Dexter
Learn how to trade using the Heiken Ashi Smoothed indicator
Heikin-Ashi is great for trading all currency pairs. It is a strong and reliable indicator for intraday trading and scalping with small time frames like 15min, 5min and even 1min. On the other hand, it is also perfect to ride the big and continuous trends in the big time frames like daily and 4 hours.
Categories: Technical, Metatrader Only
Timeframes: ANY, 5 Minutes
Currency pairs: ANY
Trading sessions: ANY
When the market is Bearish, Heiken-Ashi candles have big bodies and long lower shadows but no upper shadow. When the market is Bullish, Heiken-Ashi candles have big bodies and long upper shadows but no lower shadow.
We open a buy trade when the Heiken Ashi Smoothed indicator shows blue color. Vice versa, we open a sell trade when Heiken Ashi Smoothed indicator shows red color as shown in the following picture.
TakeProfit and Stoploss are taken care by the signal given by the slope direction line. Details are described in the following exit rules.
We close the buy trade when the Heiken Ashi Smoothed indicator shows red color. Vice versa, we close the sell trade when the Heiken Ashi Smoothed indicator shows blue color as shown in the following picture.
Heikin-Ashi Smoothed indicator eliminates the market noise and so it is much better for trading, both for reversal and also continuation signals to follow the trends.
Heiken-Ashi Smoothed indicator does not allow user to see the gaps on charts and gaps are one of the most important aspects in technical analysis
Metatrader 4 chart template files