The Moving Average
Learn how to trade with Heiken Ashi candles, which are good for long-term positions and trend trading, but not for scalping due to their ambiguity. Heiken Ashi candles indicate the average pace of price movement in a trend and therefore should not be used for short-term positions. To trade with Heiken Ashi candles, look for specific patterns in the candles and wait for an entry point. Use a demo account to practice and never scalp with Heiken Ashi candles.
Trading Heiken Ashi Candles: A Proper Guide
Introduction:
– Explanation of Heiken Ashi candles and their use in trading
Trading Heiken Ashi Candles for Swing Trading:
– Advantages of Heiken Ashi candles for swing trading
– Explanation of candlestick structure for trend trading using Heiken Ashi candles
– Importance of waiting for proper candlestick formation and setting proper risk-reward ratio
Trading Heiken Ashi Candles for Scalping:
– Disadvantages of Heiken Ashi candles for scalping
– Explanation of overlapping candlesticks and their potential negative impact on scalping
Understanding Heiken Ashi Candle Structure:
– Explanation of the two words that make up Heiken Ashi candles: hicken and ashi
– Importance of understanding average pace of price movement in Heiken Ashi candles
Heiken Ashi Candle Trading Strategies:
– Importance of reference video to understand trading Heiken Ashi candles
– Explanation of three different phases of Heiken Ashi candles for trend trading
– Importance of identifying small doji style candles with wick at top or bottom for trend reversal trading
– Explanation of entry point for new trend direction using Heiken Ashi candles
Trading Heiken Ashi Candles with Risk Management:
– Importance of setting proper stop-loss and risk-reward ratio
– Explanation of risk of large drawdown when using Heiken Ashi candles for scalping
– Importance of practicing on a demo account and closing trading app during trade
Conclusion:
– Recap of advantages and disadvantages of using Heiken Ashi candles for swing trading and scalping
– Importance of proper candlestick formation and risk management when trading with Heiken Ashi candles
