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Heiken Ashi Candlesticks Intraday Strategy | Winning Strategy | Chart | Tricks | Hack | Formula | Settings | Time Frame: Hello Folks in this article I will share with you one of the best strategies and my favourite strategy i.e Heiken Ashi Intraday Strategy.
Heiken Ashi is a really powerful candlestick chart and is very easy to use.
The Strategy I am going to share with you has a 99.999% success rate. and is proven by experts.
So, keep reading ahead Heiken Ashi Candlesticks Intraday Strategy | Winning Strategy | Chart | Tricks | Hack | Formula | Settings | Time Frame.
What is Heiken Ashi Candles?
Heiken Ashi Candles designed by Munehisa Homma in 1700, tells you the average price data to create a Japanese candlestick chart that filters out market noise.
This candlestick is really different from the standard candlestick chart.
In the standard candlestick chart, the candles are independent of the last one However In Heiken Ashi, each candle is dependent. based on Heiken Ashi Formula.
The Heiken Ashi uses a modified formula based on two periods. averages. This helps the chart to appear more smooth and clear that helps the traders to easily identify the trend.
The Heiken Ashi Formula is given below:
You can write the formula above However, for this article, it’s not that important.
How to read Heiken Ashi Candles?
To illustrate Heiken Ashi I am going to use Olymp Trade.
If you don’t have an Olymp Trade. Click Here
or If you like quick sign up. You can sign up from the form below, just enter your email, password.
You can even sign up from here…try
Secondly, After signing up you will land on the dashboard of Olymp Trade now, click on the chart button.
Now, select Heiken Ashi from the menu. and you will see something like given above.
That’s it the basic setup is over!!
Heiken Ashi Intraday Strategy
Now, In this section, I will teach you the most proven Heiken Ashi Intraday Strategy. This Heiken Ashi Strategy can be used in both Intraday Trading and Swing Trading.
Note: 1. This strategy has worked for me and may or may not work for you. I am not responsible for your loss if any.
2. Don’t break the rule and trust this system
3. Don’t try less time frame chart of 1 min or 5 min
Heiken Ashi golden rule
Okay, now note down this Heiken Ashi Golden Rule:
- If two consecutive green candle appears than it signals a bullish pattern.
2. Similarly, If two consecutive Red candle appears than it signals the bearish pattern. that’s it!!!
Let’s see some examples:
- 15 min chart
- 1-hour chart
If you see the chart properly, you will see 99.999% times the Heiken Ashi Golden Rule has worked.
However, 0.1 times or 1% times it gives false signals because of market fluctuations.
Step: 2 Using Heiken Ashi Stochastic Indicator RSI Strategy
Stochastic is my favorite indicator. It is really simple to use.
Now, note down the basics of Stochastic Indicator:
- If the Redline is more clear and is above 70 it indicates the overbought level
- Similarly, If the green line is more clear and is below 30 it indicates an Oversold level
Now, combine the golden rules of Heiken Ashi and Stochastic Indicator:
Rule 1. If Two consecutive green candle appears in Heiken Ashi plus If Stochastic Indicator shows oversold signal You can go for BUY Trade
Rule. 2 Rule 1. Similarly, If Two consecutive Red candle appears in Heiken Ashi plus If Stochastic Indicator shows overbought signal than go for SELL Trade That’s it.
Now, let’s look at some example:
15 min Chart:
In ( a ) candle we can easily see two consecutive green candles and the Stochastic indicator shows the oversold level, therefore, you can go for buy trade here.
In ( b ) candle two consecutive Red Candle but Stochastic is near to Overbought level so, don’t go for SELL trade here.
In ( c) candle, two consecutive green candles appear, however, Stochastic is not clearly in the oversold zone, so, don’t go for any trade here.
Heiken Ashi Settings | Time Frame | Pattern
By now you must have understood Heiken Ashi and Stochastic Strategy.
Now, Talking about some Heiken Ashi Patterns.
Patterns like Doji and Shooting Stars work exactly the same here. Therefore, I will highly recommend you read the article below.
Talking about Heiken Ashi Settings.
If you are looking for Heiken Ashi Intraday Settings that means if you love to trade more and take more risks you need to set the Heiken Ashi Chart to 15 mins. with Stochastic length to 14.
- In 15 mins chart, you can trade more as you will see more & more overbought & oversold signals.
- 15 min chart helps you generate more profits than a longer time frame as you can trade more here
- 15 mins chart is a bit risky as you might get some false signals
If you are a Trader who wants more profit and is okay with moderate risk 15 min chart is best for you.
Heiken Ashi 1 Hour Strategy | 30 min Strategy
Next, Talking about 30 min & 1-hour chart this chart is most suitable for swing traders.
- Minimum Risk
- Good Signals
- Idol for conservative Traders
- Low Profit
- Less Trade
Overall: If you are a trader who doesn’t like to take too much risk and okay with low profit and less trade 30 min & 1-hour chart is surely for you.
Homework: Check Your Knowledge
Answer the following:
( a ) Which trade you should take?
( b ) Which trade you should take?
( c ) Which trade you should take?
Comment your answer below without seeing others answer. I will reply if it right or wrong.
So, this is the end of this article I hope you have found this article helpful.
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