Trading with Heikin Ashi

Hi all,

I am a new to FX. I have read various methods of trading posted here, all very powerful styles, if applied correctly.

My favs :
1. Kolachi's 5WMA Price action
2. James16 Price action
3. Twoblink's OCC 55/56 tunnel

From this I created a separate system and style of trading. I have been backtesting it for a while and been fairly successful with it.

I trade the 4hr time frame due to commitments.
My chart set up:

EMA 21
EMA 55
LWMA 200
EMA Envelopes
RSI 9
Heikin Ashi Bars

Like Kolachi, i take price and action to enter trades which means i enter trades before the cross actually happen but instead of using 5WMA i use Heikin Ashi bars and RSI. I will post my trades here from now on.

There are 2 reasons why i don't take on MA crosses.
1. Lag
2. Whipsaw

They way i see it MAs are not only good trend indicators but also a good ossilator. They tend to draw away from each other after a correction during a good trend, this is what i call the fading effect or what many of you would call a whipsaw.

MAs also act good resistance areas, thus allowing you to use them as profit taking levels.


So here goes...this is SpeedFX.V2

Please give us some more information.
Senbanda

Hello and welcome.

What is your entry trigger using Heikin Ashi Bars.

I have been looking for some way to use this indicater.

Dave

Hi senbanda,

You will get more info when you see my trades in the future.

David,

I don't really understand what you meant by trigger, but i use bar formation and the bounce from EMAs as signals, I dont trade on price crosses and ema crosses. I hope that answers your question.

Jest

NZDUSD +18 pips
Long term trend showed liked the bull run against the US dollar is ending.

If you look at the charts, you will realise that i am using Donchian channels too, I intend to use it to further identify running trends where RSI keeps giving oversold indication. I will probably use it permenantly in this SpeedFX.

trigger....the exact thing that needs to happen the moment befor you click buy/sell order.

if its a bounce, do you enter befor the candle closes, or after. And if after do you wait for new bar to break high/low of bounce bar.<--just an example

But I am refering to how do you relate Heikin Ashi to this trade trigger.

Does Heikin Ashi have anything to do with your trigger or just alert you to a setup possibly forming?

Hi David,

I get what you mean now.

These are my triggers,

1. Bounce from EMA 21 or EMA 55 confirmed with a HA bar without lower shadows.

2. Price break out from correction during a trend. Example from chart below.

From the above, if the first bar gives a strong signal, eg long bar without lower shadows, i will enter on second bar. Usually i will wait till the 3rd or 4th bar before entering. The reason why i use Heikin Ashi is due to the fact that the formations are easier to recognize compared to Candlesticks, which gives more complex signals, i still believe candlesticks are best used when coupled with an oscillator best 4 me would be a stoch osc.

Jest

Ok i got ya now.

Thanks.

Dave

I haven't been in tune with the market recently...and thus missed many trades. Watching for audusd reversal....targetting a 50 pip move UP!.

-27 pips

One of the worst things that could happen to a trader is to be right about the direction of a market but got stopped out before the price moves. The signals for a reversal in the audusd pair was so strong that i was so convinced that it would be ok to trade against the trend i wasn't really looking for a rebound off either MAs.

Call it overconfidence or plain ignorance, i was a t work when i got stopped out. Refer to chat below and watch my pain...