Heiken Ashi trading strategy
The specifics of the use of Heiken Ashi.
The first thing to note is that the indicator is suitable for use on charts from an hourly time frame. If we take less, we will get a situation where patterns constantly appear, pointing in one direction, then in the other, then consolidation in general. That is, the filtering itself, for which it is worth using Heiken, will be nullified. The most optimal way is to use the indicator on the older period, for example, H4 or D1, which should indicate a time point and a certain price area, and more precisely, the point is already searched for on a regular chart and a smaller period.
heiken ashi strategy in more detail.
This is similar to the method used in the price action, where there is a resistance area in which a reversal candlestick pattern is searched after its selection. The same is true here – Ashi will filter out everything superfluous for a large period, and everything else remains for other methods. This does not mean that you can not enter the same pattern of three unidirectional Heiken candles, just as a refinement, you can use other methods.
The second point is the use of indicators together with these candles. Since there is filtering and smoothing of large fluctuations, there is no point in combining this indicator with any other from the trend group. For example, if you add a moving average, which is known for its delay, then a contradiction may arise – the signal that has just appeared from the Heiken candles will be leveled by the signal from the moving, and vice versa. Therefore, it is better to use only those indicators that can show a reversal, for example, the entire group of oscillators. They are used both to determine the general reversal on the chart, and local ones, which can make it possible to add positions as the trend progresses after local corrections on the lower periods.