How to know when heiken ashi will continue or range? as at times heiken ashi reverses after two or three candles otherwise continues to a greater extent, I am looking for advice on lower time frames, whereas in longer time frames fundamentals comes handy, which does not seem to be the case with smaller times.
If the body was big n no tail, it continues. Using heiken best is add in a 21ema line with a awesome oscillator n with m10 chart. U b surprised of the results. Even with high time frame. Price over 21ema n AO is green. Means it continues . But if price above 21ema n AO is red. Price mostly will reverse. Better don’t trade. Wait for all conformation. Pull up a Day chart and check if price over 21ems or below 21ema n see what color is the AO. Than drop to lower time frame m10 for trigger. Best is u check all m10, m15 or m30. If all gv u same signal, just go for it. But remember trade wisely
I all the while using heiken, easier to read than normal candle, no headache of reading too much kind of price action. Heiken is v straight forward candle, when range the body is short, mostly hv tail ontop n below. If u want more confidence n confirm of the candle if it continues or reverse, beside adding 21ema n AOL u can add in ichimoku cloud. It give u a better view of the whole chart. price above cloud it up below cloud is down inside cloud is ranging.
I use Heikin Ashi a lot and also for scalping. In my own opinion we really can’t say when price will continue or will range. This is the same with normal candlesticks, Heikin Ashi, Bar or Line Chart that we can’t know what the future movement will be and all is just speculation. Analysis or calculation does help but even if we made hundreds of calculation that Price will go where it wants to go. Since technical gets it’s data from hindsight we can just guesstimate. For me I look for small patterns, S/R on recent peaks, consolidation, signs of retracements, angles, breakouts and micro breakouts, etc. and just try my best. All goes down to your charting skills.
About news of fundamentals, I love trading the medium and high priority news but I don’t follow the news. I can say that news can very much affect small TF and not much on longer TF. You’ll often see this when price spikes after the news. Very often price will slow down before the news and spike after the release. This doesn’t give much affect on longer TF say 1 day, 1 week, 1 month, et. Meaning that the news can spike and send price to spike down but if the general daily or weekly trend is up, more often price will go up again. If you are a scalper you will definitely see this. For big news like war, famine, major earthquakes, sunami, major economic crashes, drastic change in fuel prices, etc. do affect longer TF but for scalping, high and medium news release can send price spiking and can be dangerous.
Anyway, this is just my opinion.
It depends on what the price does: HA-candles are formed [B]by[/B] prices - so whatever the price does is going to be reflected in the construction of the HA-candles.
[I]I appreciate that you know this already[/I], of course, and I’m stating it only because the wording of your questions suggests to me (perhaps rightly - perhaps wrongly: it’s hard to know, from a single forum post someone’s made) that in spite of knowing that, you’re still perhaps instinctively looking at it the other way round, as if on some level the HA-candles actually [I]determine[/I] which way prices are going to move. :o
We both know that that isn’t really true, though, don’t we?
I also agree with Ronnel’s comments above about news/fundamentals and time-frames.