Heikin-Ashi versus Candlestick | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Mister ED's 4 hour Heikin Ashi system 1,354 replies

Heikin-Ashi 2 replies

Heikin-Ashi Technique 2 replies

Regarding Smoothed Heikin Ashi indicator 0 replies

Trading with Heikin Ashi 9 replies

Attachments: Heikin-Ashi versus Candlestick
Exit Attachments

Heikin-Ashi versus Candlestick

  • #1
  • First Post: Aug 30, 2007 6:19am Aug 30, 2007 6:19am
Hello everybody,

I have been trading Candlesticks with good results but I just discovered the Heikin-Ashi candles and APPARENTLY they are FAR more reliable.

Can anybody tell me if this Heikin-Ashi candles are what they appear to be?

Thank you!

iiivb
  • #2
  • Aug 30, 2007 7:54am Aug 30, 2007 7:54am
HA is just another indicator and it will only be as reliable as you believe it to be and the only way to know that is to try them yourself. If you are not big into price action/formations they may be better for you.
  • #3
  • Aug 30, 2007 8:21am Aug 30, 2007 8:21am
Quoting C.E.O.
HA is just another indicator and it will only be as reliable as you believe it to be and the only way to know that is to try them yourself. If you are not big into price action/formations they may be better for you.
Ok! Thanks for your insight C.E.O.!

iiivb
  • #4
  • Aug 30, 2007 8:48am Aug 30, 2007 8:48am
Quoting iiivb
Hello everybody,

I have been trading Candlesticks with good results but I just discovered the Heikin-Ashi candles and APPARENTLY they are FAR more reliable.

Can anybody tell me if this Heikin-Ashi candles are what they appear to be?

Thank you!

iiivb
basically they smooth things out

Here is the formula and some more info if it helps

http://www.investopedia.com/articles.../04/092204.asp
  • #5
  • Aug 30, 2007 9:59am Aug 30, 2007 9:59am
Quoting mbqb11
basically they smooth things out

Here is the formula and some more info if it helps

http://www.investopedia.com/articles.../04/092204.asp
Thanks mbqb11!
  • #6
  • Edited 2:56pm Aug 30, 2007 2:35pm | Edited 2:56pm
You might check Steinitz's dead thread to learn more about HA. I wouldn't put much stock in the first post reference to a "grail" though.
Is your SL my TP?
  • #7
  • Aug 31, 2007 4:34am Aug 31, 2007 4:34am
HA is an averaging method, hence it serves much the same purpose as MAs, and involves the same compromises: smoothness versus lag. As such, it is another trend-following indicator, that performs well in trending markets, and poorly when prices range.

At first glance, HA can be deceptive, especially if the “real” candles are obscured or removed from the chart. Profitable trading would be a cinch if one could enter and exit on the HA candle “prices”.

Here’s an interesting article outlining some caveats of using HA:
http://www.ensignsoftware.com/tips/tradingtips57.htm

David
  • #8
  • Aug 31, 2007 8:33am Aug 31, 2007 8:33am
Quoting kenmania
You might check Steinitz's dead thread to learn more about HA. I wouldn't put much stock in the first post reference to a "grail" though.
Was that thread closed because this is a "commercial" indicator?
  • #9
  • Aug 31, 2007 8:35am Aug 31, 2007 8:35am
Quoting hanover
HA is an averaging method, hence it serves much the same purpose as MAs, and involves the same compromises: smoothness versus lag. As such, it is another trend-following indicator, that performs well in trending markets, and poorly when prices range.

At first glance, HA can be deceptive, especially if the “real” candles are obscured or removed from the chart. Profitable trading would be a cinch if one could enter and exit on the HA candle “prices”.

Here’s an interesting article outlining some caveats of using HA:
http://www.ensignsoftware.com/tips/tradingtips57.htm

David
Danke schön Hanover!

I have been analyzing this "indicator" that looks very nice but it is not a "grail" at all though.

I guess I will keep with "raw" price action!
  • #10
  • Sep 5, 2010 8:57am Sep 5, 2010 8:57am
TF 30 min. Determine trend using any ma cross you are comfortable with---I use a 9 ema and 21 ema cross to see the trend. Trade in the direction of the trend--in my case buy at a green candle if the trend is long. Exit at a red candle. Re-enter at the next green candle if trend is still long. Never trade against the trend. You can judge the strength of the trend by noting the bottom of the candles---if they have no tail the trend is strong. Same rules apply for downtrend--I use red candles to enter and green candles to exit---always wait for candle close. Hope this helps.
  • #11
  • Sep 5, 2010 11:11am Sep 5, 2010 11:11am
Simple Heiken Ashi rules:
Attached Image (click to enlarge)
Click to Enlarge Name: Sep. 05 17.09.jpg Size: 95 KB
It never gets easier, you just get better
  • #12
  • Sep 5, 2010 12:02pm Sep 5, 2010 12:02pm
I use HA candles and find them useful indicators of trend, or of trend change confirmation. Study them before using them. I have friends who trade them and are very profitable (only on large time compressions).
  • #13
  • Sep 6, 2010 7:38am Sep 6, 2010 7:38am
this thread is 2000 years old.
  • #14
  • May 27, 2014 10:58am May 27, 2014 10:58am
Any people out there using HA candles and having success? I was thinking more long term Monthly-Weekly-daily candles for analysis
  • #15
  • May 27, 2014 11:20am May 27, 2014 11:20am
I dont understand whats wrong with you people ! i wana know whats The Problem with normal CandleSticks ? Why Always you wana find something else When Those Old things work very Great !
You Must Love CandleSticks
  • #16
  • May 27, 2014 2:56pm May 27, 2014 2:56pm
Why even use Candlesticks then? or Moving Averages? lets all go back to writing prices on chalk board, those old things worked great. That is what Jessie Livermore did and he made hundreds of millions.....

I am not here to argue. The HA candle is an average price candle, it is a better indicator of trend. Put the HA on your chart and have a look and see if you trade better.
  • #17
  • May 27, 2014 3:17pm May 27, 2014 3:17pm
"Heikin-Ashi versus Candlestick"

DELAY...!
My Best Trade is Next Trade!
  • #18
  • May 27, 2014 3:52pm May 27, 2014 3:52pm
I have been trading with both and I find the HA seems to create a less noise on the chart. That being said you get a better picture of the price action using candle stick in my opinion
Luck is what happens when preparation meets opportunity
  • #19
  • May 30, 2014 2:13pm May 30, 2014 2:13pm
I am a believer in HA, and I also like to confirm using candlesticks. Especially if an HA color change comes along with an engulfing candle... Does anyone know of (or can code) an alert for when an HA occurs within 1 or 2 bars of the color change and has no upper or lower tail? Even better, if this alert is only triggered at the same time as a stochastic cross (8,3,3) above 80 or below 20 ?

Thanks,

Bry
  • #20
  • May 15, 2015 1:34pm May 15, 2015 1:34pm
Learned to use HA from Genesis Matrix. http://www.forexfactory.com/showthread.php?t=373796
0 traders viewing now