Wanna learn more about Heikin-Ashi

[itsrijo]

hi

searched online for Heikin-Ashi ebooks but coudnt find much other than dr Valcu’s leaflet , is there anything else out there ?? pls help me

[Letseethepips]

The mystery of the Keyser Sose and Heiken Ashi. What i have been doing is searching forex websites and seeing how people have been using them on different methods they are implementing.That has helped me develop my own method that iam demoing with two other indicators.Some charts dont even offer them, my future broker is one.

[tymen1]

There is not a lot of information around concerning HA candles.

I have done considerable study on these creatures.

[B]I give 3 pieces of advice in using them…[/B]

1. DO NOT use the HA smoothed method - it has been proven to fail seriously.
   Use only HA candles.

2. When using HA, set your program to have the ask and bid (buy and sell) lines visible on your chart.
   Then you know what the real price action is doing.

3. NEVER use the HA candles on their own - use a confirming indicator.
   You don’t need a million of them, just one will do.

An excellent way to use HA candles is in conjunction with the Bollinger bands.
When the price action walks the outer bands, the HA candles clearly indicate the start and end of such trends.

[d-pip]

Heikin-Ashi candles are very [B]“visual” [/B]and make for a nice simple trend following method… But they are [B]far from perfect [/B]and there is also a major down side to using the Heikin-Ashi candles… They lag and change color slower than regular candlesticks, sometime one to two candles later, so on reversals you might end up giving some of your profit back…

In terms of looking for candlestick patterns, “Heikin-Ashi candle patterns” are very different than regular “Japanese candlestick patterns”. So if you try to trade them using typical “Japanese candle patterns” you’ll most likely lose big chunks of your bottom side. Because of the candle color lag personally I don’t use them except when I’m bored… then I’ll use them for some short term trend trading on 1 min & 30sec charts… which works great. IMO

If you google “investopedia Heikin-Ashi” you’ll find some good information about the Heikin-Ashi and the math formulas behind them… If you’re using MT4, you can find quite a few custom Heikin-Ashi indicators using MA and color lines instead of the candle colors. But study the custom indicators and understand them before trading with them!

gook luck
thanks!

[I]PS Pay attention to tymen1’s comment about setting your program to have the ask and bid (buy and sell) lines visible on your chart.[/I]

[itsrijo]

thanks guys … i am just figuring out the basics here … my demo account is doin good but not upto my target , thats why i am looking into HA candles…

thanks for the support

[tymen1]

…
They lag and change color slower than regular candlesticks, sometime one to two candles later, so on reversals you might end up giving some of your profit back…

This is exactly correct!!

…
So if you try to trade them using typical “Japanese candle patterns” you’ll most likely lose big chunks of your bottom side.

You are not meant to use the traditional candle patterns with HA candles.
The HA candles are a different beast altogether.

I would suggest the learning of a traditional trading method first.
Use an indicator, candle or naked strategy that uses ordinary candles.

Become proficient in the use of ordinary candles before messing around with HA candles.
The HA candle is a lagging indicator dressed up to look like a candle!!

[d-pip]

thanks guys … i am just figuring out the basics here … my demo account is doin good but not upto my target , thats why i am looking into HA candles…

thanks for the support

Learn and become proficient with your regular candles. They’re your standard for trading everything and anything. Heikin-Ashi are only useful after you have a complete understanding of regular candles. So work on your regular candles and forget about Heikin-Ashi for now!

good luck
thanks!

PS If you’re looking for a nice newbie system look in the old threads for the 3 Ducks, it’s a nice simple system. And instead of using the 60ma moving average as per the 3 duck rules try using the 20ma on the 4h, the 20ma on the 1h and the 20ma on either the 5m or 15m. It’s a bang on simple and profitable method!

[itsrijo]

This is exactly correct!!

Become proficient in the use of ordinary candles before messing around with HA candles.
The HA candle is a lagging indicator dressed up to look like a candle!!

yes , i got the same advice from 2 other guys when i asked em about HA :o

thank you d-pip for the 3 ducks … looks promising

[soul786]

There is not a lot of information around concerning HA candles.

I have done considerable study on these creatures.

[B]I give 3 pieces of advice in using them…[/B]

1. DO NOT use the HA smoothed method - it has been proven to fail seriously.
   Use only HA candles.

2. When using HA, set your program to have the ask and bid (buy and sell) lines visible on your chart.
   Then you know what the real price action is doing.

3. NEVER use the HA candles on their own - use a confirming indicator.
   You don’t need a million of them, just one will do.

An excellent way to use HA candles is in conjunction with the Bollinger bands.
When the price action walks the outer bands, the HA candles clearly indicate the start and end of such trends.

Great info. I’ve been looking at HA candles and the definately those are key to not messing up while using them. The tip at the bottom is one I’ll be watching, never thought to see how things visualize with the BBands and HAcandles working together.

Thanks Tymen!