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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2 comments:
Nicely explained. I find heikin candles very useful. Especially for newbies. I think they can provide the easiest and quickest clues to the market turns - just what's needed if you Forex practice is very small.
Thank you! Keep up the good work.
Absolutely agrre with the previous comment. I have tried numerous methods trading forex. By far the most successful are weekly (yes, weekly) HA candles which reveal incipient trends better than anything else, strip out the noise, and give you a good idea when to exit (candles with whiskers in both directions).
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