Bar charts were the first to attempt technical analysis with charts. This method charts prices by marking the open and close price on one side of a vertical bar. This was the most basic method of charting price movements in those days.

The Japanese candlesticks were next. This method plots price using candlesticks that change in color according to where the price closes relative to the opening price. This method is based upon a technique that Japanese rice traders used in the 18 ^th century. This is the preferred method of many traders.

Charting price movements is a very innovative skill of Japanese traders. Japanese traders have also created a new form of price charting. Heiken Ashi literally means "average bar" and is a Japanese term. Heiken Ashi Candlesticks are a way to chart price movements. The color of the bar is determined by the price movement.

The Heiken Ashi Candlesticks open and close prices are plotted differently to the traditional candlestick. The average of the open and close of the previous bars is used to calculate the "open". The "close" is calculated based on the averages of the open, close and low.

If you are trading with the trend, the Heiken Ashi candlesticks can be used as an exit and entry trigger. It is best suited for fast-moving and strong trends due to its responsiveness and speed.

Heiken Ashi Candlesticks Indicator

The Heiken Ashi Candlesticks indicator works best for markets with strong momentum.

This strategy will identify the direction of the short term trend based upon the 60-period Simple Moving Averages (SMA) as well as the 30-period Exponential Moving Averages (EMA). The stacking of the two moving averages will determine the trend. If the 30 EMA crosses the 60 SMA, the trend will be bullish. If the 30 EMA falls below the 60SMA, the trend will be bearish. To indicate strong momentum, the two moving average lines must have some separation. The price should not enter the area between these moving average lines. It should reject the 30 EMA line whenever it is close to it.

The Heiken Ashi Candlesticks change in color, which indicates the direction of the trend. Trades can then be made.

Indicators:

• 60 SMA(Green)
• 30 EMA Gold
• Heiken Ashi (default setting)

Prefer Time Frames: 1 hour, HTML4 hours and daily charts

Currency pairs: major, minor pairs

Trade Session: Tokyo sessions

Trade Setup

Entry

• The 30 EMA line should not be below the 60 SMA lines.
• The moving average lines should slope up.
• Both lines should be at the top of the price range.
• The price should retrace towards 30 EMA.
• You can place a purchase order when the Heiken Ashi Candlesticks turn to green.

Stop Loss

• Place the stop loss for the fractal under the entry candle.

Exit

• When the Heiken Ashi Candlesticks change to red, close the trade

Setup for Trades

Entry

• The 30 EMA line should not be higher than the 60 SMA lines.
• The moving average lines should be inclined down.
• Both lines should be kept below the price.
• The price should retrace towards 30 EMA.
• You can place a sale order once the Heiken Ashi Candlesticks turn to red.

Stop Loss

• Place the stop loss on fractals above the entry candle.

Exit

• When the Heiken Ashi Candlesticks change to green, close the trade.

Conclusion

For traders who trade on strong trending markets, the Heiken Ashi Candlesticks are one of the most effective entry and exit triggers. It's quick and responsive, and it is slower than other technical indicators. This allows traders to profit from short-term price movements, which could indicate a shift within the short-term trend.

This indicator can also give false signals in choppy markets. This indicator is not recommended for traders who trade in choppy or ranging markets. To confirm trend direction and strength, it is a good idea to use this indicator in conjunction with another indicator.

This strategy shows how an indicator can work in strong trending markets. It allows traders to profit from high-yielding trades, and allows for small wins and losses every now and again.

Forex Trading Strategy Installation Instructions

Heiken Ashi Candlesticks trading strategy is a combination Metatrader 4(MT4) indicator(s), and template.

This forex strategy aims to transform historical data and trading signals.

The Heiken Ashi Candlesticks Trading Strategy allows you to spot patterns and peculiarities in price dynamics that are not visible to the naked eye.

This information allows traders to assume additional price movements and adjust their strategy accordingly.

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• Demo accounts are available to test trading strategies.

Step-by-Step RoboForex Trading Account Open Guide

How do you install Heiken Ashi Candlesticks Trading Strategy.

• Download Heiken Ashi Candlesticks Trading Strategy.zip
• *Copy the mq4 & ex4 files to your Metatrader Directory/experts /indicators /
• Copy the tpl (Template) file to your Metatrader Directory/Templates
• Your Metatrader client can be started or stopped.
• Choose the Chart and Timeframe in which you would like to test your forex strategy
• Right-click on your trading chart, hover over "Template",
• You can now choose Heiken Ashi Candlesticks Trading Strategy
• Your Chart will show you that the Heiken Ashi Candlesticks Trading Strategy can be accessed

*Note that not all forex strategies include mq4/ex4 files. Some templates can be integrated with the MT4 indicators from the MetaTrader Platform.

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