The Heikin-Ashi technique–“average bar” in Japanese–is one of many techniques used in conjunction with candlestick charts to improve the isolation of trends and to predict future prices.
There are five primary signals that identify trends and buying opportunities:
- Hollow candles with no lower “shadows” indicate a strong uptrend: let your profits ride!
- Hollow candles signify an uptrend: you might want to add to your long position, and exit short positions.
- One candle with a small body surrounded by upper and lower shadows indicates a trend change: risk-loving traders might buy or sell here, while others will wait for confirmation before going short or long.
- Filled candles indicate a downtrend: you might want to add to your short position, and exit long positions.
- Filled candles with no higher shadows identify a strong downtrend: stay short until there’s a change in trend.
These signals show that locating trends or opportunities becomes a lot easier with this system. The trends are not interrupted by false signals as often, and are thus more easily spotted. Furthermore, opportunities to buy during times of consolidation are also apparent.
- QQE arr,
- RSI filter (14).
- Moving Average
- Heiken Ashi
- RSI Filter
- Momentum
- Laguere
- ADX
Time Frame : 30 min or higher.
Financial Markets : Commodities ( Gold, Silver and Oil), Indicies, Forex.
- Step open 4H charts or higher depends by time frame and find the currency, index or commoditie in trend.
- Step open chart 30 min or 60 min time frame and apply the template.
- Trades only in the direction of the trend.
- Heiken Ashi Green and upward
- Laguere upward
- Momentum upward and >100
- RSI Filter blue
- The green arrow of QQE arr is confirmed by RSI Filter with blue bar.
- Heiken Ashi Green and upward
- Laguere upward
- Momentum upward and >100
- ADX White Line upward and >30
- The red arrow of QQE arr is confirmed by RSI Filter with red bar.
- Heiken Ashi red and downpward
- Laguere downward
- Momentum downward and <100
- ADX White Line downward and >30
Exit at opposite arrow place stop loss at the previous high/low.
Advantage: this forex strategy is very simple and clean.
Disanvantage: Profitability is between 53-60%.
This idea of trading can be improved with a filter or a filter system best because QQE arr is a good indicator.