Heikin Ashi Strategy on normal candles AZT
Strategy Premise
Heikin–Ashi, also sometimes spelled Heiken–Ashi, means “average bar” in Japanese. The Heikin–Ashi technique can be used in conjunction with candlestick charts when trading securities to spot market trends and predict future prices. It’s useful for making candlestick charts more readable and trends easier to analyze
Heikin Ashi is better for price action however we can get optimum results by using some filters like ema, rsi, volume, etc. Further, we will demonstrate the steps to automate the simple Heikin-Ashi strategy.
We can generated heikinashi values with a mathematical formula considering some of the previous candles values. There are two primary trade signals we can identify through the Heiken Ashi candlestick:
Bullish candlesticks have no wicks or very small wicks. They indicate a strong uptrend and excellent buying opportunities.
Small candlesticks can be characterize by a small body, big upper, and lower wicks. They signal a potential reversal.
Heikin ashi is better for price action however we can get optimum results by using some filters like ema, rsi, volume,etc. Further we will demonstrate the steps to automate simple heikin-ashi strategy.
Limitations on Heikin Ashi traditional charts:
Trading view free/pro users cant access HA charts for intraday
It shows wrong back testing results. When any strategy is applied on Heikin ashi it would show best profit curve but that’s unreal because heikin ashi has so much of variation from real market price
It actually has chance to mislead people that heikin ashi is best always
Therefore we are going to setup an alternative heikin ashi strategy which can be applied on normal candlestick charts.
Advantages of Heikin Ashi strategy with normal candles over traditional:
The price is related to real markets and logic is related to renko block building this strategy will reduce slippages when applied on real markets
Trading view free users/pro users who cannot access renko charts can use this to apply renko on normal charts
Strategy Logic
Long Entry : when there is a cross over with Heikin Ashi candle and Ema +2 consecutive Heikin Ashi bullish candles Send LE
Long Exit: Either when SL or Target is hit. If SL/TGT is not hit or trend is reversed Send LX and SE
Short Entry: When there is cross under of Heikin Ashi value and Ema + 2 consecutive bearish candles Send SE
Short Exit: Either when SL or Target is hit. If SL/TGT is not hit or trend is reversed Send SX and LE
Heikin–Ashi, also sometimes spelled Heiken–Ashi, means “average bar” in Japanese. The Heikin–Ashi technique can be used in conjunction with candlestick charts when trading securities to spot market trends and predict future prices. It’s useful for making candlestick charts more readable and trends easier to analyze
Heikin Ashi is better for price action however we can get optimum results by using some filters like ema, rsi, volume, etc. Further, we will demonstrate the steps to automate the simple Heikin-Ashi strategy.
We can generated heikinashi values with a mathematical formula considering some of the previous candles values. There are two primary trade signals we can identify through the Heiken Ashi candlestick:
Bullish candlesticks have no wicks or very small wicks. They indicate a strong uptrend and excellent buying opportunities.
Small candlesticks can be characterize by a small body, big upper, and lower wicks. They signal a potential reversal.
Heikin ashi is better for price action however we can get optimum results by using some filters like ema, rsi, volume,etc. Further we will demonstrate the steps to automate simple heikin-ashi strategy.
Limitations on Heikin Ashi traditional charts:
Trading view free/pro users cant access HA charts for intraday
It shows wrong back testing results. When any strategy is applied on Heikin ashi it would show best profit curve but that’s unreal because heikin ashi has so much of variation from real market price
It actually has chance to mislead people that heikin ashi is best always
Therefore we are going to setup an alternative heikin ashi strategy which can be applied on normal candlestick charts.
Advantages of Heikin Ashi strategy with normal candles over traditional:
The price is related to real markets and logic is related to renko block building this strategy will reduce slippages when applied on real markets
Trading view free users/pro users who cannot access renko charts can use this to apply renko on normal charts
Strategy Logic
Long Entry : when there is a cross over with Heikin Ashi candle and Ema +2 consecutive Heikin Ashi bullish candles Send LE
Long Exit: Either when SL or Target is hit. If SL/TGT is not hit or trend is reversed Send LX and SE
Short Entry: When there is cross under of Heikin Ashi value and Ema + 2 consecutive bearish candles Send SE
Short Exit: Either when SL or Target is hit. If SL/TGT is not hit or trend is reversed Send SX and LE