FlameseN Trading
Learn how to identify trends in price action using the Hikanashi and Smooth Takanashi candlestick indicators for more precise market analysis and trading entries. This strategy uses a risk to reward ratio of 1:2 and relies on waiting for confirmation of trend establishment before entering a trade. The Smooth Takanashi indicator can also act as a dynamic support and resistance level and be used to spot support and resistance zones. Adding a supply and demand zone indicator can further improve the strategy.
How to Use the Smooth Takanashi Indicator to Enhance Your trading strategy
Introduction:
– Importance of identifying the trend before initiating a position
– The limitations of Hikanashi candlesticks and their solution: Smooth Takanashi Indicator
Identifying the Trend:
– Multiple upwards and downwards price movements
– Importance of examining price action closely
– Candlestick headed in the opposite direction
The Limitations of Hikanashi Candlesticks:
– Smoothing effect minimizes market noise
– They do not display the actual clues of candlesticks
The Solution: Smooth Takanashi Indicator
– Customizable settings for Hikanashi Candlestick calculation
– Ability to uncheck Hikanashi Wix
– Price input smoothing length customization
– Smooth Takanashi Indicator plots Hikanashi Candlesticks as a moving average
How to Read the Smooth Takanashi Indicator:
– Analyzing color and price action position
– Taking note of the size of the candlesticks
Different Entries Based on the Indicator:
– Waiting for a short move to the downside first
– Entering a short trade once the price re-tests the Hikanashi candlesticks
– Setting the stop loss just slightly above the Hikanashi candles
– Waiting for a pullback to the Hikanashi candles before entering a long trade
– Setting stop loss at the most recent swing high and aiming for a risk to reward ratio of at least 1:2
More Examples of Using the Indicator for Trade Entries:
– Adding supply and demand zone indicators for a more professional strategy
– The importance of following the rules when identifying trade setups
Conclusion:
– The power of the Smooth Takanashi Indicator in combination with Hikanashi Candlesticks and actual price action
– Tips for enhancing your trading strategy with this indicator
– Answering questions from viewers in the comment section
