Most of the profits and losses come at a time when the market enters the trend. For this reason, it can be very useful to accurately predict the trends. Most traders use candlestick charts to find these trends, despite irregular market fluctuations. The Heiken Ashi (Japanese average bar) technique is one of many techniques used in conjunction with the candlestick chart, which is being used to improve the isolation of trends and to predict future prices.
The difference from the normal candlestick charts is due to the calculation method of the data.
Calculation of adapted bars is as follows:
XClosing = (Opening + High + Low + Closing) / 4
XAction = (Previous bar opening + Previous bar closing) / 2
XHigh = High, xClose, and xApplication, whichever is higher
XLower = Low, xClose, and xAction is low
There are five main signals for trending and buying opportunities:
- Hollow candles without downward shadows tend to rise.
- Hollow candles come to understand the rise: you can add to your long position. Exit short positions.
- A small candle with a shade down and up shows a trend change: While traders who love trades can buy or sell here, others prefer not to wait for confirmation before opening a long or short position.
- Candles filled with candles show the trend of decline: Here you can go from the long position where you can add to your short position.
- Wax-filled candles with no shadow at the top show a strong decline trend: stay in the position as short as the trend changes.
It is easier to pinpoint trends or capture opportunities with these signals.
These trends are often not interrupted by false signals and are thus easily detected.
In addition, acquisition opportunities at consolidation times can be clearly seen.
The Heiken Ashi Smoothed indicator provides a more detailed and accurate analysis of the MetaTrader compared to the normal Heiken Ashi indicator calculated by default. This indicator makes it easier to make decisions about trend trends.
Attention: This indicator only works with MetaTrader 4
Here is a download link:
Keywords: Heiken Ashi Smoothed, Forex Trading, Forex Indicators, Trading Strategy