Does anyone use the heiken ashi indicator? | Forex Factory

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Does anyone use the heiken ashi indicator?

  • #1
  • First Post: Nov 15, 2006 9:04pm Nov 15, 2006 9:04pm
So I was reading about this indicator in mt4. It's pretty much an average candle. anybody use it in their system?!
  • #2
  • Nov 15, 2006 9:24pm Nov 15, 2006 9:24pm
I've used it at times and kind of like it. It smoothes out the noise and I think it helps me make better exit decisions. I use it in conjunction with cci. The only problem is that I can't put it on and take it off quickly in MT4 which is what I really want to do. Maybe I'm missing something. It ends up right on top of the price bars in the same color so I have to keep messing around with settings. I use the cci to enter a trade and use heiken ashi and cci to figure out when to exit it.

Squid
  • #3
  • Nov 15, 2006 9:24pm Nov 15, 2006 9:24pm
I did create a system with Heikin Ashi (recc for daily and 4hr)

For 4hr charts, use 21EMA and channels 55, 89, 144 for profit targets.

EMA 55close and ema 60open for trend direction.

http://www.forexfactory.com/forexfor...ead.php?t=8706

I am not using it anymore...back to trading setups since im on shorter timframe now.
  • #4
  • Nov 19, 2006 5:49pm Nov 19, 2006 5:49pm
Japanese candle sticks are a wonderful tool. There is a lot that can be learned about the movement of the currency by studying the various patterns of the cadlesticks. I have been using them successfully on the VT Trader platform. They work well when incorporated with RSI and Bollingers. Let mw know what you think.
  • #5
  • Nov 20, 2006 6:14pm Nov 20, 2006 6:14pm
The Japanese candle sticks (heiken-ashi) is the best indicator in my opinion. 9 times out of ten I enter a trade at the beginning of a trend and exits befor it reverses. All do to the candles. I couldn't do this before having Steve Nison teach me how to read them in conjunction with the overall market. The candlesticks is a leading indicator. It will forcast the direction of the market. It will tell you if the trend is strong, will it reverse, and if so how much. Do yourself a service and learn and master the Japanese candlesticks. They will put a lot of dough in your pocket.
A. Finesse Williams Making Millions One Pip At A Time!
  • #6
  • Nov 21, 2006 11:33am Nov 21, 2006 11:33am
so does heiken ashi and candlesticks work hand in hand!!?!?

Cause heiken ashi's formulas is just the average of high, low, close, open. And candlesticks are just patterns that one should learn like reversal, continuation, etc.
  • #7
  • Nov 22, 2006 12:07am Nov 22, 2006 12:07am
Quoting hilmy83
so does heiken ashi and candlesticks work hand in hand!!?!?

Cause heiken ashi's formulas is just the average of high, low, close, open. And candlesticks are just patterns that one should learn like reversal, continuation, etc.
You don't know what a candle stick is I see. Read steve nison books on it. The candle do not tell averages, it tells wht is actuallly happening. If you fail to look at a candle signal as that you will lose every time. The Japanese candles is the only leading indicator that I know. Learn the signals, then compare it to any market you want and you will see the beauty of using this ancient art to get rich.
A. Finesse Williams Making Millions One Pip At A Time!
  • #8
  • Nov 24, 2006 11:38pm Nov 24, 2006 11:38pm
Quoting aswilled
The Japanese candle sticks (heiken-ashi) is the best indicator in my opinion. 9 times out of ten I enter a trade at the beginning of a trend and exits befor it reverses. All do to the candles. I couldn't do this before having Steve Nison teach me how to read them in conjunction with the overall market. The candlesticks is a leading indicator. It will forcast the direction of the market. It will tell you if the trend is strong, will it reverse, and if so how much. Do yourself a service and learn and master the Japanese candlesticks. They will put a lot of dough in your pocket.
Aswilled,

First...I'm glad that you've done so well. Excellent for Christmas. By the way..too bad i'm on the other side of the moon. Well...sometimes we gain sometimes we loose.

Anyway, I'm very much interested to discover more about this (heiken-ashi). Other than the book, do you mind to provide any link that I can learn and finally how to down load this chart...is it available in MT4 ?

Thanks for you in advance.

Have a great weekend. Of course I'm sure you will.
Shah For every action there is an equal and opposite reaction.....
  • #9
  • Nov 25, 2006 2:31am Nov 25, 2006 2:31am
I believe the question was about the heiken ashi indicator in Metatrader, which as far as I see is basically an average of the open high low and close and thus filters the noise to give you more of a smoothed average and to better see the trend. Aswilled, i'm not sure if heiken ashi is another name for japanese candlesticks but you are right in your definition of the japanese candlesticks but like I said, I think the question was about the actual indicator, hope I'm not confusing anyone. I had similar questions as to how people are using the heiken ashi indicator found in metatrader, and if anyone has gotten decent success with it? Aswilled, does Steve Nison talk about heiken ashi (indicator) in his japanese candlesticks book?

Ron
  • #10
  • Nov 25, 2006 2:41am Nov 25, 2006 2:41am
Heikin Ashi candles are indeed averages of normal candles. Here's the formula description http://www.ensignsoftware.com/tips/tradingtips57.htm

If you need the indicator for MT4 I'm pretty sure is in the indicator's archive http://www.forexfactory.com/forexfor...ead.php?t=5913
-soso
  • #11
  • Nov 25, 2006 11:13am Nov 25, 2006 11:13am
Great links, Soso.

Thanks,
andersenws
"Youth is the trustee of prosperity." - Benjamin Disraeli
  • #12
  • Jan 15, 2007 4:26am Jan 15, 2007 4:26am
Quoting aswilled
The Japanese candle sticks (heiken-ashi) ...Steve Nison teach...
One thing to take note on; Steve Nison does not mention "Heiken Ashi" candles in his book, but standard, kagi, renko, and three line break candles. The HA candles that are being discused in this particular thread are not a part of Steve's teachings. Just an FYI in case you thought of buying his (great!!) book on candlesticks thinking there was mention of HAs. There is not.

I do enjoy utilizing the MT4 HA indicator when using the shorter time frame charts such as the 5m...it smooths out the noise.

: ) Thom
  • #13
  • Jan 15, 2007 4:20pm Jan 15, 2007 4:20pm
I've tried them. They are based on averages and therefore are a lot like MAs. That also means they lag somewhat. Mostly I think they get used with Ichimoku. Dan Valcu is the man on these. You might want to check his site. I can't post the link, but it's educofin. Just google that, and you'll find it.
  • #14
  • Edited 11:08pm Jan 18, 2008 10:34pm | Edited 11:08pm
Quoting accrete
One thing to take note on; Steve Nison does not mention "Heiken Ashi" candles in his book, but standard, kagi, renko, and three line break candles. The HA candles that are being discused in this particular thread are not a part of Steve's teachings. Just an FYI in case you thought of buying his (great!!) book on candlesticks thinking there was mention of HAs. There is not.

I do enjoy utilizing the MT4 HA indicator when using the shorter time frame charts such as the 5m...it smooths out the noise.

: ) Thom
As a matter of fact Nison-San has more than once recommended the use of Heiken Ashi, or "Averaged Candlesticks" in conjunction with western Technicals, but only in seminars and videos.

It's a good idea while spotting delayed HA signals to also monitor a regular Candlestick chart for earlier reversal, or repetitively reoccurring reversal signals, indicating heavier reversal or pivot potential eg; Evening star, followed by a Dark cloud cover, followed by a Bearish Engulfing, breaking consolidation lows.

And as always it should be kept to strict note, that the validity of any reversal candlestick signal is defined by the number of surrounding complimentative technical indicators of the same perspective probability eg; A Piercing pattern followed by a Bullish Harami, on horizontal support, leaning on an ascending trend line. << Thats a reversal candlestick signal and as long as it actually has a prior trend to reverse ie; Bearish in this case, they it is worth buying in to, providing that the mid point between your profit taking area and your stop loss below the Candlestick reversal pattern(s) aligns with your approximate entry point, giving u basic 1:1.

I just wrote a whole trading system in a nutshell lol

Regards,
E. Lang
"One Grows Tall After Walking Through A Forest Of Tall Trees."
  • #15
  • Jan 19, 2008 1:48am Jan 19, 2008 1:48am
there are some negatives associated with HA. (IMO)

http://www.ensignsoftware.com/tips/tradingtips57.htm

this is a good primer.
  • #16
  • Jan 19, 2008 3:23am Jan 19, 2008 3:23am
Quoting BookerT
there are some negatives associated with HA. (IMO)

http://www.ensignsoftware.com/tips/tradingtips57.htm

this is a good primer.
the journalist who wrote this article is wrong:

"A wick on the top of a regular Up candle implies that selling pressure has moved the market back down from the high. Thus, I consider it misleading to see a high wick on a Heikin-Ashi up candle when no selling pressure is present. The inverse applies to low wicks. A wick on the bottom of a regular Down candle implies that buying pressure has moved the market off of the low. Again, it is misleading using conventional interpretation for low wicks to be present on a Heikin-Ashi down candle when no buying pressure is present."

No practicioner of HA would ever mistake an upward wick as selling pressure. quite the opposite. An upward wick represents buying strength.
He goes on to acknowledge that conventional interpretation is inappropriate for HA so why even mention this at all ?
  • #17
  • Jan 19, 2008 8:54am Jan 19, 2008 8:54am
(JMO) but HA bars show PA where in fact no trades took place so I consider them FALSE from the get go.
Oh they look nice but they are not an accurate picture of the actual price.
  • #18
  • Jan 20, 2008 1:11pm Jan 20, 2008 1:11pm
Quoting rathcoole
the journalist who wrote this article is wrong:

"A wick on the top of a regular Up candle implies that selling pressure has moved the market back down from the high. Thus, I consider it misleading to see a high wick on a Heikin-Ashi up candle when no selling pressure is present. The inverse applies to low wicks. A wick on the bottom of a regular Down candle implies that buying pressure has moved the market off of the low. Again, it is misleading using conventional interpretation for low wicks to be present on a Heikin-Ashi down candle when no buying pressure is present."

No practicioner of HA would ever mistake an upward wick as selling pressure. quite the opposite. An upward wick represents buying strength.
He goes on to acknowledge that conventional interpretation is inappropriate for HA so why even mention this at all ?
In a Bullish bar, a long upper wick should indicate rejected high price values; a sign of opposing selling strenght and lack of price and pressure control from the buyers, and a shaven bottom similarly to a bullish belt hold would indicate strong buying pressure and vice-versa. The person who wrote the article was correct in his statement, but i generally disagree with him on the effective use of HA Candles and remain my confidence in this method.

Regards,
E. Lang
"One Grows Tall After Walking Through A Forest Of Tall Trees."
  • #19
  • Mar 1, 2008 5:53pm Mar 1, 2008 5:53pm
Quoting aswilled
You don't know what a candle stick is I see. Read steve nison books on it. The candle do not tell averages, it tells wht is actuallly happening. If you fail to look at a candle signal as that you will lose every time. The Japanese candles is the only leading indicator that I know. Learn the signals, then compare it to any market you want and you will see the beauty of using this ancient art to get rich.
aswilled ... I think from what I read here that you think Heiken Ashi is simply another name for Japanese Candle Sticks. This is not the case.

Heiken Ashi is a variation on Japanese candlesticks and certainly uses the 'candle' concept with wicks etc., however it is quite different from regular Japanese candlesticks. Heiken Ashi uses an averaging system to give you the visual display shown on charts, wheras Japanese candlesticks is simply a candle style display of open, high, low, close, with the colour of the candle being determined by whether price went up or down from open to close within that candle.

Heiken Ashi is generally available as a 'display style' within your primary price chart ... where you'll have the opportunity to display price as bars, candles, Heiken Ashi etc.

Hope that helps.
  • #20
  • Feb 5, 2011 10:20am Feb 5, 2011 10:20am
been looking at incorporating Ha candles, thought i'd post to try to revive this discussion. It seems the color of a Ha might be more significant than the color of a shorterm candle(5m or less) so it seems they may be more valuable if trying to trade on shorter time frames than just looking at price action with normal candles.
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