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Heiken Ashi Candlesticks | Olymp Trade | Wiki | Strategy | Patterns | Chart | Tricks | Hack | Formula | Settings | Time Frame

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Heiken Ashi Candlesticks | Olymp Trade | Wiki | Strategy | Patterns | Chart | Tricks | Hack | Formula | Settings | Time Frame: Hello Folks in this article I will share with you one of the best strategy and my favourite strategy that you can use too while trading.

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 | Olymp Trade | Wiki | Strategy | Patterns | Chart | Tricks | Hack | Formula | Settings | Time Frame.

 

Heiken Ashi Candlesticks Wiki

What is Heiken Ashi Candles?

Heiken Ashi Candles designed by Munehisa Homma in 1700, that tells you the average price data to create Japanese candlestick chart that filters out market noise.

This candlestick is really different than the standard candlestick chart.

In the standard candlestick chart the candles is dependent on the previous one However, here, each candle is independent.

The Heiken Ashi uses a modified formula based on two periods. averages. This helps chart to appear more smooth and clear that helps the traders to easily identify the trend.

The Heiken Ashi candles Formula is given below:

 

Heiken Ashi Candle Formula
Heiken Ashi Candle Formula (Source: Investopedia)

 

You can write formula above However, for this article, it’s not that important.

Heiken Ashi Candlesticks Chart in Olymp Trade

First and foremost step is to switch your Olymp Trade standard chart to Heiken Ashi chart.

To turn this chart  Firstly, you need to have an Olymp Trade account. Create Your Free account here. it’s free takes 5 secs only…

Secondly, After signing up you will land to 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 Strategy | Hack | Trick

Now, In this section, I will teach you the Heiken Ashi most proven 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

Okay, now note down this Heiken Ashi Golden Rule:

  1. If two consecutive green candle appears than it signals bullish pattern.

      2. Similarly, If two consecutive Red candle appears than it signals the bearish pattern. that’s it!!! 

See, the chart below.

  • 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

Olymp Trade Winning Strategy

 

Stochastic is my favourite indicator. It is really simple to use.

Now, note down the basics of Stochastic Indicator:

…………………………………………………………………………………………………………………………………………………………

  • Similarly, If the green line is more clear and is below 30 it indicates 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. 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: 

See the chart above and from you will also understand why you should use a Higher time frame chart.

Recommended: Which is the best time frame to trade on Olymp trade?

In ( a ) candle we can easily see two consecutive green candles and Stochastic indicator shows the oversold level, therefore, you can go for buy trade here. However, if you have taken this trade most probably you would lose the trade because the market is fluctuating here right!!!

This happened because you took a low time frame chart. where there is a high chance of false signals so stay alert here!!

 

In ( b ) candle two consecutive Red Candle but Stochastic is not clearly in Overbought level so, don’t go for any 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 too.

 

 

Heiken Ashi Settings | Time Frame | Pattern

 

By now you must have understood Heiken Ashi and Stochastic Strategy.

Taking about Heiken Patterns Heiken Ashi and Japanese Candlestick patterns like Doji and Shooting Stars works mostly like the same. Therefore, I will highly recommend you read the article below.

Read: Learn How to use Candlestick Patterns properly in Olymp Trade with 2.9 year experienced Trader

First and foremost thing I want to share with you is Heiken Ashi Setting and Time Frame.

Heiken Ashi for Intraday Day Trader

If you are an Intraday Trader 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.

 

Heiken Ashi Chart for Intraday Trader
Heiken Ashi Chart for Intraday Trader

 

Pros:

  • 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

Cons:

  • 15 mins chart is a bit risky as you might get some false signals

Overall:

If you are Trader who wants more profit and is okay with moderate risk 15 min chart is best for you.

30 Min & 1 Hour Chart

Heiken Ashi Chart for Swing Trader
Heiken Ashi Chart for Swing Trader
Heiken Ashi Chart for Swing Trader
Heiken Ashi Chart for Swing Trader

Next, Talking about 30 min & 1-hour chart   this chart is most suitable for swing traders.

Pros:

  • Minimum Risk
  • Good Signals
  • Idol for conservative Traders

Cons: 

  • 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.

Winding Up:

So, this is the end of this article I hope you have found this article helpful.

This article was all about Heiken Ashi Candlesticks, Heiken Ashi Olymp Trade, Heiken Ashi Wiki, Heiken Ashi Strategy, Heiken Ashi Patterns, Heiken Ashi Chart,Heiken Ashi Tricks, Heiken Ashi Hack, Heiken Ashi Formula, Heiken Ashi Settings, Heiken Ashi Time Frame, What is Heiken Ashi Candles?, Heiken Ashi Stochastic Indicator RSI Strategy, Heiken Ashi for Intraday Day Trader, Heiken Ashi for Swing Trader

 

 

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