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Learn about a hike and ashy trading strategy that offers high accuracy and works for crypto, Forex, and stocks. Combining regular and hike and ashy candlesticks provides the best of both worlds. The ATR bands indicator can help determine stop loss and take profit levels for trades. The strategy provides good entry signals and profitable trades.
Hike and Ashy Trading Strategy: A Detailed Guide for Traders
Introduction
Hike and ashy trading strategy is known for its great accuracy in determining when to buy or sell assets. This strategy is applicable to crypto, forex, and stocks. In this article, we will provide detailed information on how this strategy works and how traders can use it to monitor trend direction and enter profitable trades.
What are Hike and Ashy Candlesticks?
Hike and ashy candlesticks are an advanced version of Japanese candlesticks that display the price action of an asset in a smoother format. These candles are derived from traditional candlesticks and filter out market noise. Hike and ashy candles are ideal for spotting trends in the market. A sequence of multiple green hike and ashy candles indicates an uptrend, while a series of red candles indicates a downtrend.
Determining Trend Direction with Hike and Ashy Candles
Hike and ashy candles also help traders to determine the trend direction accurately. When the candles have no wicks in the opposite direction, this means the trend is strong. Similarly, if several candles form a sequence in the same direction, the trend is likely strong. Additionally, traders can identify ranging or consolidating markets by spotting small sequences of candles with longer upper and lower wicks.
Combining Hike and Ashy Candlesticks with Japanese Candlesticks
While hike and ashy candlesticks provide a lot of information about the market, they also have some drawbacks. Hike and ashy candles don’t provide accurate open and close prices of an asset. To overcome this issue, we can combine Japanese candlesticks with hike and ashy candles. This combination helps to identify trend directions more accurately.
Setting up the Hike and Ashy Trading Strategy
To set up the hike and ashy trading strategy, follow the steps below:
1. Change the candles back to traditional Japanese; this will display the actual asset price.
2. Navigate to the indicator search tab and add the hike and ashy candlesticks indicator made by Walner Adam.
3. Change the color of the bullish and bearish candle bodies to green and red, respectively, and keep the wick and border colors the same.
4. Navigate to the input tab and set the smoothing length to 75; this will provide accurate signals without entering positions too often.
5. Add the ATR bands indicator made by Alexander T to determine where to place stop-loss and take-profit levels.
Entering a Buy Position with Hike and Ashy Trading Strategy
When entering into a buy position, the hike and ashy candles change from red to green, indicating bullish momentum entering the market. If there was a significant spike that pushed the asset price higher, this further confirms the bullish momentum. To enter a buy position, place the stop loss at the recent swing low and the take-profit at the recent swing high.
Utilizing the ATR Bands Indicator
When considering where to place stop-loss and take-profit levels, the ATR bands indicator helps traders make informed decisions. When combining the hike and ashy candlesticks with the ATR bands indicator, traders can identify feasible entry points and determine their risk-to-reward ratio.
Entering a Sell Position with Hike and Ashy Trading Strategy
When entering into a sell position, the hike and ashy candles change from green to red, indicating bearish momentum entering the market. If there was a significant drop pushing the asset price lower, this further confirms the bearish momentum. To enter a sell position, place the stop loss at the recent swing high and the take-profit at the recent swing low.
Conclusion
The hike and ashy trading strategy is one of the most accurate strategies used to monitor trend direction and enter profitable trades in different asset classes. Traders can combine hike and ashy candlesticks with the traditional candlesticks. The ATR bands indicator also helps traders to determine their risk-to-reward ratio, making the strategy more enhanced. Using this strategy, traders can significantly increase their profitability.
