9/29/08

Heikin-ashi and japanese candlesticks

Heikin-ashi candles are the perfect candles for trend traders.

Not only they smooth out the entire market picture, they are able to keep a trader in alignment with a trend.

Heikin candles have two colors: red and blue. Red - for bearish trends, blue - for bullish.

There is nothing simplier than reading heikin-ashi candles: just look at the color of the candle.

Regular charts:



Heikin-ashi charts:



Also keep an eye on the candle structure: a shaved bottom for bullish candlestick confirms that uptrend is still going. Same as shaved top for bearish candlestick confirms a downtrend continuation.

Trail stops alongside last candlestick body. Change trends when heikin-ashi does and be happy ith trading these amazing candlesticks!

 
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