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!
9/29/08
Heikin-ashi and japanese candlesticks
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