How To Trade Foreign Exchange Market With Heiken Ashi Trading System – The benefit of the Heiken Ashi indicator is its visual simplicity. Trading channels appear more tightly formed, and major trends are easier to detect and follow.
The first benefit of Heiken-Ashi is showing you the direction of the trend through color coded candles. But however, it is highly recommended that the use of Heiken Ashi be combined with another indicator to provide confirmation of interpretations.
As with any technical indicator, a Heiken Ashi chart will never be 100% correct. False signals can occur, but the positive signals are consistent enough to give a forex trader an “edge”.
Skill in interpreting and understanding Heiken Ashi bars must be developed over time, and complementing the Heiken Ashi tool with another indicator is always recommended for further confirmation of potential trend changes.
TREND SQUEEZER Heiken Ashi Trading System
TREND SQUEEZER Heiken Ashi Trading System is a great strategy simple and effective.
TrendSqueezer06 – the indicator is in the second sub-window in the form of red and blue bars. The strategy serves as a trend filter. If the bar is painted in blue – bullish trend, if the red – the trend is bearish. indicator settings are closed, so you can only change the state of the color configuration.
ForexProfitSupreme Filter – indicator is in the third sub-window in the form of red and blue bars. The indicator serves as a trend filter. If the bar is blue – the market is dominated by the bulls, and if the red – dominated by bears. of the indicators settings can be optimized for trading on younger period of time.
I-Gentor LSMA EMA is optionl, the indicator serves as a trend filter only blue and yellow line (blue line bullish trend, yellow line bearish trend).
- Best Time Frame : 30 min or higher but on Dax futers you can use also 15 min time frame.
- Financial Markets : any
- Trend Squeezer indicator blue color
- Heiken Ashi white Candles and above MA 60 line
- I-Gentor LSMA EMA blue color
- Trading Recommendation green color (Trade BUY Only)
- Trend Squeezer indicator red color
- Heiken Ashi red Candles and below MA 60 line
- I-Gentor LSMA EMA red color
- Trading Recommendation red color (Trade SELL Only)
TREND SQUEEZER Heiken Ashi Trading Note:
A simple trading system would then be:
- Determine your entry point from a Support level and then confirmation by the Heiken Ashi color shift;
- Execute a “Buy” order for no more than 2% to 3% of your account;
- Place a stop-loss order at 20 “pips” below your entry point;
- Determine your exit point when the Heiken Ashi candles reach resistance levels and signify a color change.
Steps “2” and “3” represent prudent risk and money management principles that should be employed.
This simple trading system would have yielded a profitable trade of 30 basis points, but do remember that the past is no guarantee for the future. However, consistency is your objective, and hopefully, over time, Heiken Ashi technical analysis will provide you with an “edge”.