Trading with Heiken Ashi and Heiken Ashi smoothed - Hybrid

Hi there

This method needs more work on it.

CCI migth work but what i see is that sometimes we get late entries and late exits.

http://my.jetscreenshot.com/2168/m_2...hkjn-238kb.jpg

so we need to get out at profit or move stop to Break even as fast as possible.

you got it man, especially on short time frames. The market can sense when you are in profit and will try to take you out, so you gotta be patient with wide stops or lock in your profit quick.

This market looks a bit choppy - or, sideways. I would only trade the Hedayat Hybrid in a clearly trending environment. And, when volume is high if on short timeframes. With larger time-frames volume is not as critical.

Also, be careful about entering on BIG bars...they can snap back on you real quick. Look for little bars with tighter technical stops.

As for the CCI, yes it will lag like most indicators...so if you are going to use it...you need to be looking for your potential entry as soon as the CCI is nearing extreme levels.

I'll see if I can spot some trades and post some charts this week.

thx,
Bryan

To all,
Is Heiken Ashi Smooted (HAS) here is the latest?
Can I have the latest/new version of this Heiken Ashi Smoothed (HAS)?

Hi there Handsgod...I will up-load the version I have for MT4. Though what I am posting is FXCM marketscope not MT4.

and Alfredo...I did not have time to look for actual set-ups with the hybrid...though I have marked up a chart of good entries based on how I approach the strategy...this is a 4 hour chart Euro/CAD. (entries circled in yellow)

There is one good cross there at the bottom of the screen, if you got in there you could have made a ton of pips...but also look at getting in on the retracements which are the inside HA bars in that up-swing...if the HAS does not change color, you remain in the trade.

The downward leg of this trend was not very clean...and I would avoid those big bearish bars as entries short...they are price traps.

And again, I like to see the CCI nearing extreme conditions before considering a trade. I also use Weekly pivots, when price breaks these levels then retraces back to them, that can be a good entry.

I am not going to trade this sytstem right now...but it is a good way to trade and if people want to post ideas and potential set-ups I'd be happy to discuss the trades, and possible enter.

Eur/CAD 4 hour

HAS smooth for MT4...there may be a newer version but probably not.

Here is a possible entry Long on the same pair....Eur/Cad 4 hour.

Price is retracing back to support at R2. I would not place a trade on a 4 hour chart on Friday late in the session. I'll see where that is on Sunday.

Eur/Cad 4 hour

Thanks a lot bryn077 for the HAS.

Thank you Hedayat SM for sharing the strategy. The truth is that this strategy will give alot of fakeouts!!!!!!!!!!!!!!! I have developed such a strategy before and it never worked perfectly. Why not just trade the normal HA candles or the APB candles with your Ema(5) and macd(3,10,16) to spot divergence, also as the market move in your favour shift your StopLoss right behind the last two candles before your current candle to prevent loss of profit and to minimize losses for trade management purpose. Trade with peace of mind with perfect entry and exit.

Thanks.

Hello Dare

Thanks for your inputs

Could you please go in deeper in your findings. Could you post some charts.

Bryan

Thanks for the charts i still trying some other stuf that could bring some clear view how to take advantege of this indicator. It can give good entries but the exits are not good.

So how to take advantege os this?

Set a fix pip target? Like a fixed number of pips per trade ex: 20 pips
Move stop to BE to prevent losers?

I will look at this possibility and see how many winners and how many losers we got from this. I will post them when i can.

The problem with indicators they are always late and the oversold could not be over also the oposit. I dont trust tehm. But it is a matter of Stats.

If we have a good RR and a good winner loser relation we will win in the long time.

This can be analise looking at charts.

Regards

Alfredo

I know this system is not perfect, but I want to thanks to Hedayat SM for this thread.
And maybe you are the first one to developed this system, but I'm sure he did not mean to plagiarize your work.
But the point is, he started this thread to give us, the trader, some contribution.

For me, this thread give me an idea to combined to my system to be more .
It's like the "aha" when our master Leonardo Fibonacci find the simple one.
http://www.babypips.com/school/fibonacci-who.html

Not to be wise, but, take the positive point. Be humble.
Please, take my .

That sounds good Dare 123 but the market is filled with fakeouts no matter what approach you take...that is how the forex market exists. Like Alfredo suggests perhaps you can offer some chart analysis.

thx,
Bryan

Hi Alfredo...I did not receive these posts to my e-mail otherwise I would have responded earlier. Let me post my recent thoughts on that Eur/CAD set up and digest what you said...If I can offer constructive support I will.


Here on the Euro/Cad 4 HOUR chart nothing has really moved. Lat Friday I was not thinking of the Memorial day holiday, and tomorrow is a news event for Canada (BoC interest rate) The pair has constricted. Originally I thought of a possible buy stop at 1.34. Though, I wanted to see a false break to the upside, and then a quick move down before I placed the buy stop. This did happen but not with enough movement at all to place an order. see second image circles in blue. I Imagine tomorrows news will move the pair.
Eur/Cad 4 hour chart

thx,
Bryan

Hi Alfredo...Exits can be hard to deal with, Hedayat actually mentioned this several times in his early post. But I think exits are difficult for young traders...like me, no matter how you approach the charts. Just so you know, I am pretty much a break even trader just starting to see more consistent profits. I can contribute to this thread because I have already seen my fair share of losses...lots.

okay...Yeah you can set a fixed number of pips per trade. Right now I have a daily pip target I look for, once I hit it, I close all any trades and call it a day. I think that is kind of a scalping mentality. And I think 15 min charts are good scalping charts. If you have a decent profit on a trade take it until you have developed the patience and skill to hit targets with more consistency.

If I am on a 5/15 min chart - 5 to 10 pips is ok with me, and I can probably get 3 to 5 trades from 7 to 10;30 am ET. If I move up to 30 min charts and bigger where support and resistance is clear...I will look to hit targets at support and resistance.

What are the settings you are using for your hybrid set up ? and what kind of orders do you place...buy/sell stop...limit orders ? This is very important. If you are trading with the direction of the trend and using buy/sell stops...you have to be ready for whipsaws...ALL the time. I hide my stop loss, I move it way away from the trade...your broker will hit it if he can. Set yourself some 'soft stops' near your trades and if your trade does not recover quickly when it is hit...pull the trade. Often when I know the trade is not good...I will sweat it out until price gets back towards breakeven, and then just close the trade. But it needs to 'recover' from my soft stop first. I will not let a trade move against me for too long...you hear all the time. Small losses can be made up for.

And I know indicators lag...The CCI I use for one purpose in this case...When the move is up, looks for dips, buy on dips...that's the name of the game. And when the move is up, I only want to see the CCI in OVERSOLD levels.

okay...Also, try some pivot levels on your charts, they are good for s/r...if price is in-between those pivots. It will go up or down to one of those levels...it will, there is no question, it may take some time but it will. You just need to have the direction right.

Look here on that Euro/Cad...Note the R1 level at the top of the chart and the Central pivot at the bottom. Price is moving right up to my R1. I want to look for long positions. There are three retracements here (dips) and my CCi is OVERSOLD...this is when I want to get long...(circled in yellow) my buy stops are the little horizontal blue lines. Also look at my grey HA smooth...it barely ever turned white(bearish) a reason the get in long and hold those trades...you should actually look at the HA Smooth as dynamic S/R...just like a moving average.

And back testing...it's great but you know when trading in real time, the market will respond to your orders, forward testing is key.

That is all I can think of for now.

One more thing...take a look at what happened after that false break from yesterday (circled in blue)...it made an upward move triggering buys stops then took a lot of them out of the trade with that whipsaw. And then away it went up to R1 resistance. You gotta watch out for this. So I think for 15 min charts, you need to get your entries in deep and take profits pretty quick.

Also on this chart...regarding support and resistance. Look at the big pink line. Clear resistance broken on the right side of the chart. Resistance becomes support, price retraces back to it...and then back up to R1.

Euro/CAD 15 min

Lets also take a quick look here back at the bigger timeframe, these are powerful. One way I used this system was to only trade in the direction of the HA smooth color, from the larger timeframe. Here it's grey, or bullish. So on a 15 min frame I would simply only look for long positions.

Anyway, I was speculating a buy stop at 1.34 at the time ( solid blue line), and targeting R1...this would have been a good one, and what I would look for in this set-up.

Eur/Cad 4 hour.

Hello

Brynn007

Waht matters at the end is to make some pips.

There is something frequent in trending sistems is the use of a higher tf and lower tf.

For example using 1m and 5m, or 15m and 4h etc any combination that can make a better view or using several tf at the same template.

I´m looking at this atm.

http://my.jetscreenshot.com/2168/m_2...khq4-314kb.jpg

I´m short this baby

It is making a king of flag lets see how it goes

happy pips

Alfredo

Stupid market hhhmmm

Close my short and went long. Good luck for me. lol

All the best

http://my.jetscreenshot.com/2168/m_2...uzuq-348kb.jpg

http://my.jetscreenshot.com/2168/m_2...mu83-366kb.jpg

for confirmed entrys i have put a 5 high 5 low smoothed ma on the chart, only opening the trade when default heiken closes above /below channel, stop at bottom of channel ( long trade ) trailing. exit the trade on colour change of default heiken. this seems to be a nice easy to follow system

Hello

Terryberry

Interesting idea, please post some charts.