QuantitativeExhaustion

Heiken Ashi Candlestick vs. Normal Japanese Candlestick

FX:EURUSD   Euro Fx/U.S. Dollar
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Heiken Ashi candlestick filters out some noise in an effort to better capture the trend. For those that use trailing stops and are trend traders, flipping back between the two candlestick charts is quintessential for traders. In the chart I showed how a trader could use trailing stops to profit from the biggest trends. He or she would set stops with long or short positions and use the previous Heiken Ashi candlestick (green or red - lower or higher) as a gauge to stay in a trade or to get out of a trade. Overal Heiken Ashi is a chart I will look at often to know if I'm on the right side of the trade.

For more information here is a free PDF/e-book (Nani Desu Ka) on Heiken Ashi http://www.earnforex.com/forex-e-books/trading-strategy/Using_The_Heikin_Ashi_Technique_D_Valcu.pdf
snapshot

Heiken Ashi boost confidence knowing you are on the right side of the trade.
+5 Reply
y.alharbi
2 years ago
ty
+2 Reply
QuantitativeExhaustion PRO y.alharbi
2 years ago
No problem
+3 Reply
RyanT
2 years ago
Saving this one.
Reply
ZigaZaga PRO
2 years ago
Thankfully - a simple practical explanation without having to master Kanji or study the ancient traditions of Eastern commerce! The author may be interested to know that this page comes up 4th when searching Google for "heiken ashi vs candlestick".
+2 Reply
fx8313
2 years ago
good feedback. what are some of the negatives of using Heiken Ashi?
Reply
TradeEmpowered
2 years ago
Excellent tutorial and PDF.
Reply
Sanfords
2 years ago
Thanks for the education with Heiken Ashi
Reply
zmm20
a year ago
I don't understand how you are determining when to close a position and when not to, I see long positions being closed when the HA candles are still green and the bottom of the HA candle is above the bottom of the previous candle. but they were left open though times when the HA bars turned red, like from Aug 20 2012- Sept 16 2012 in the main chart you posted. Also how do you determine how many pips to use for trailing stops?

Thanks for the nice post
+5 Reply
Trailing stop should be where the candle stick tail ends, if long bottom tail of previous closing candle, if short top tail of previous closing candle.

Follow the PDF for more instructions on when to enter or when to exit.
Reply
I'm not an avid HA trader, i was simply presenting an idea, because when I published this chart HA was new to TradingView.
Reply
zmm20 zmm20
a year ago
This chart for instance -
snapshot


How do you determine to close where you did rather than waiting for the red HA candle?
Reply
If I remember right, chart more than two years old, it's based on the previous candle body. If a candle body is red while in a trend and the body closes below the previous HA candle, then you exit the trade.
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JBatbatan
a year ago
Thanks for the information on trailing stop using heiken ashi. I will be sure to add it in my next article to give more information to my readers.

I have an article posted about some of the ways to enter a trade using heiken ashi. If some of the readers here are interested. The link is http://www.investorshack.com/heiken-ashi-candle/
Reply
FDK
6 months ago
Very Informative! Thanks :)
Reply
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