Get started

Ashi

A-Z About HEIKEN ASHI CandlesticksHEIKEN ASHI Strategy: 1.INTRODUCTION (WHY HEIKEN ASHI CANDESTICKS) Often trading on the trend gets difficult due to price action that makes trader exit trades early. (USELESS NOISE FORMED BY TRADITIONAL CANDLES) This mainly happens due to impact of one single candle or bar on Trader’s ability to hold positions. Through Heiken Ashi Candles , this problem is largely solved as Price Trend is clearly represented through these. LOOK at the difference between TRADITIONAL and HEIKEN-ASHI Candlesticks below: A) TRADITIONAL candlestick with a lot of noise during uptrend and downtrend which confuses most of the traders and forces them to exit early B) HEIKEN-ASHI with a smooth buttery experience while trading: -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 2.TYPES OF CANDLES Let us now come to the types of Heiken Ashi candles. In this chart, I have done 5 markings to explain the various types of candles in Heiken Ashi. a)The wide range yellow/green candles indicates good momentum and shows the stock shall be bullish for some more days unless and until there are signs of reversals b)The small body green/yellow candles represents the continuation of the trend although they show that the stock is not very bullish but is bullish c)SPINNING TOP- is formed when the body of the candle is very small (NOT A DOJI) and there is wick equal on both upper and lower side. d)The wide range red candles shows weakness in the stock e)INDECISIVE Candles- are formed when it is neither of the above candles (small body and irregular size wicks on up and down side) Always remember, size of body, shadows, and range of candle determines whether it Is bullish, bearish or neutral candle Do read futhur to understand -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 3) KEY RULES to follow There are broadly 5 rules that need to be followed when trading with Heiken Ashi Candles. DO HAVE A LOOK AT THE CANDLES SIMULTANEOUSLY Rule 1 – Green candles with no lower shadows indicate a strong uptrend: When you spot these on charts, be in the trade and don’t think about profit booking. You might want to add to your long position and exit short positions. Rule 2 – Candles with a small body with upper and lower shadows indicate trend change: These are indecision candles and require more confirmation. Rule 3 – Red/Black candles with no upper shadow indicates strong a downtrend: When you spot these on charts, be in the trade and don’t think about profit booking. You might want to add to your short position and exit long positions Rule 4 – Candles with long lower shadows represent Buying interest. Always take note of these candles and assess price action after you spot these candles. Rule 5 – Candles with long upper shadows represent selling interest and be cautious with existing long positions if you spot such Candles. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 4) INITIATION AND CONTINUATION: You just need to know 2 types in trend analysis 1.INITIATION CANDLE 2.CONTUATION CANDLES 1.Initiation candle is one that sets the tone of Trend and defines underlying momentum for price. This is why Initiation candles are most important in Trend Analysis and Price action trading. 2.Continuation candles are ones that reaffirm the direction of trend and are useful to increase positions in the direction of trend. FREE TIP: When you begin price trend analysis, always look for initiation Heiken Ashi candles and then look for continuation candles. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 5) IDENTIFYING STRONG TRENDS: In the chart below, let us see how a strong Up/Down trend looks like. In Heiken Ashi, we should be measuring strength of move based on Initiation Candles (Candles that represent strong trend). If you look at the chart, all markings that I have done are that of Strong Initiation candles on the downside and upside (BUY/SELL) When such candles are visible on the chart, invariably Price tends to move up/low. Always keep range of Candle in mind. It should be wide with no upper/lower shadows for uptrend and downtrend respectively. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 6) COMMON MISTAKES Most Common mistake when using Heiken Ashi Candles is to Enter or Exit Trades based on the color of Candle. Most beginners commit this mistake and this should be avoided at all times. Whether it is Heiken Ashi Candles or any other charting method, you need to understand the overall Market Trend and Context. Without this, you will find it difficult to Trade successfully over a longer period of time.(PRICE ACTION IS THE KING) This is just an additional filter like an indicator and should not be treated as the only parameter in your strategy...If trading was so easy then 90% wouldn't have lost their money in trading...Trading is like cooking you need to add the right ingredients in the right amount to taste a dish good.A pinch of salt less can ruin the entire hardword behind making the dish...Similar is trading...Will make a tutorial on risk management as well...Do let me know if you are interested only then it would be wise for me to proceed ahead. One of the main things you have to do is to analyze which candles contribute to Trend and which do not. This effective way of filtering out relevant candles from non relevant one’s is what will help you succeed with Heiken Ashi Candles. FREE TIP:(SAVES TIME DO READ) Always divide your Candles into two types; 1.Candles that have impact on Trend 2.Candles that have no impact This way, you will know which one’s to be focussed upon. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 7)DISADVANTAGES: EVERY + HAS A - ELSE EVERY TRADER WOULD HAVE USED THIS STRATEGY TO MAKE TONS OF MONEY EVERYDAY The one main disadvantage that most traders refer to is that by the time Traders take positions based on Heiken Ashi Candles, the entire move is already over. While there is some merit to this, it is important to note that this mainly applies to short time frame charts. On higher time frame charts (30 Min to Monthly time frame), Heiken Ashi has tremendous benefits and Traders should try and incorporate these in their Trading arsenal. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- I hope this tutorial as helpful for you to understand some basics of HEIKEN-ASHI candlesticks...There are many other types of candlesticks which have their own importance like RENKO and PnF candlesticks...Do let me know in the comments whether I should make posts on STOCKs that I Trade/EDUCATIONAL posts like this FOLLOW me for many more such content ahead...DO hit the like button...Till then, HAPPY TRADING :)
Editors' picks
HEducation
by keshevdugar
166
Oil and Gas Sector Index Analysis, Levels and Trade ZoneHello Trades, I shifted my focus on the Oil and Gas sector. From Sep 21 to Sep 23, we see the price is moving around a price zone of 7710 to 8164. This zone acts as a resistance. But recently on the weekly chart we see a bullish crossover below the resistance zone and the price has entered the resistance zone. The HA candles indicate the upward momentum in the price. From these levels the price potentially moves to the higher levels. Also on the daily chart we see a clear uptrend. Wait for the breakout of the 8164 level and the price will try to reclaim its recent high levels of 8668. Thanks Sardar Simranjit Singh Virdi
N
by ssvirdi
india cements can give multi year breakoutfor exit or stop loss hekinashi would be preferable as better we follow trend ,we can see how price acted in previous years and now price is over 200 dma where the bull run takes place if all time high is broken stock can move further higher and intresting fact is damani owns around 22 - 24% and can open offer anytime and this is under valued company compared to other cement companies & india cements current owner actually take over the company in the psat from another promoter , so this time may be damani take overs this
NSE:INDIACEMLong
by master-oogway
Analysis of Nifty Energy Weekly Chart by Heikin Ashi and Renko The energy index looks bullish on weekly charts as there are no signs of weakness. As the Heikin Ashi chart has been making green candles also the structure of the chart is good. The overall feel of the chart is good. On daily charts the price is on the bottom of parallel channel and on the same pivots. Renko is also making a green brick. The stock may face high volatility on lower time frames. But from these levels the downside is less.
NSE:CNXENERGY
by ssvirdi
Bitcoin (BTC) Chart - Japanese Candlesticks Vs. Heikin AshiOn the left side: BTC chart with japanese candlesticks (full of noises that hinder our trading decisions). On the right side: The same chart but with Heikin Ashi candlesticks (much cleaner and more defined which helps our trading decisions). Heikin Ashi was developed by Munehisa Homma in the 1700s and share some characteristics with standard japanese candlestick, but differ based on the values used to create each candle. Instead of using the open, high, low, and close like japanese candlesticks, the Heikin-Ashi technique uses a modified formula based on two-period averages. This gives the chart a smoother appearance, making it easier to spots trends and reversals. Tip: Heikin Ashi is ideal for swing trading.
by cryptosrocket
3 10 Momentum trading with Heikin Ashi Idea consist of EMA 13 offset by 1 Linda 3 10 oscillator 3 10 Trend Signal Enter Long once Linda 3 10 oscillator signal line (Red Line) crosses above zero from below Wait for trend signal to turn green Wait till 2 consecutive heikin ashi bullish candles closes above 13 EMA offset 1 Enter above high of second bullish heikin ashi candle Trail your sl with13 EMA offset 1 exit as 2 consecutive bearish heikin ashi candles closes below 13 EMA offset 1 VICE VERSA for bearish trades
CME_MINI:ES1!
by ardaonblaster
WIPRO - PRO+GOOD FOR A QUICK OPTION Take trade as per the values given in Fibonacci. always trail the stop loss. do your own analysis before taking trade Check these Upcoming ideas - STILL ACTIVE Check these successful trades & approach on HDFC , HINDUNILEVER, INFOSYS ,, MOTHERSUMI , DLF , BRITANNIA If you like my analysis do like & follow me as a token of appreciation. If you have any queries on any stock let me know. Leave a comment that is helpful or encouraging. Let's master the markets together
NSE:WIPRO
by thestockengineer
ARR- Heikin Ashi Signals on CandlesThis is test a simple stress-free strategy that we can apply on Heikin Ashi charts Simple rules Buy - when forms Bullish candle. i.e Open=Low in Henkin Ashi candle Sell - when forms Bearish candle i.e Open = high in Henkin Ashi candle all other candles are Doji we can ignore/wait The problem with Heikin Ashi's chat is I do not show actual LTP. We can't backtest this in nor Heikin Ashi charts. we need a normal candle or bar chart to get the actual price. here I tried to fix the actual price issue for backtesting 50 EMA AND VWAP give only for reference.
NSE:BANKNIFTY1!
by arameshraju
Tasty ChannelAs the broader market is choppy, it's a big challenge to find outperforming stocks in such market conditions but still, I have tried to get a strong stock to trade. Observations: -> Bullish Heikin ashi pattern -> RSI above 60 (Shows good strength) -> Bullish MACD with increasing divergence -> Healthy Channel ( Angle between 45*-30*) -> Volume Profile: I have marked High-value node zone Remark: -> Its a risky trade, Risk to reward will be more than 1.25 but still it's a risky trade.
NSE:TASTYBITELong
by abhishek_sh4
Confusing NIFTY: What Heikin Ashi, Ichimoku Combo Suggests ?NIFTY View in Heikin Ashi & Ichimoku perspective & different time frame. All mentioned on Chart (time frame 4 hour) NIFTY view as per Heikin Ashi, Ichimoku Combo. Time Frame: 1 hour NIFTY view as per Heikin Ashi, Ichimoku Combo. Time Frame: 2 hour Conclusion: Sell on rally , for Target: 9858, 9822, 9792 . Once reached 9792, possibility of bounce / DN trend confirmation. Upside restricted to 9965 level as strong Supply Zone.
NSE:NIFTYShort
by DSKF16