Wysetrade
Learn how to use hike and Ashy candles to analyze charts and identify trend direction and momentum, and how to use key levels for trading opportunities.
How to Use Hikanashi Candles to Improve Your Trading Strategies
Introduction
In this video, we’ll show you how to use Hikanashi Candles like a pro. By using these candles, you can easily identify trend direction, trend momentum, and trend changes in a smoother view of price, making it easier to apply price action concepts and techniques.
Accessing Hikanashi Candles on Your Charts
To access Hikanashi Candles on your charts, select it in the top section of your traditional Candlestick chart. For more information on using the exact charting platform we use, visit our website at wisetrade.com.
Traditional Way of Using Hikanashi Candles
There are two traditional ways to use Hikanashi Candles in trading:
1. Identifying Strong Trends and Momentum
When spotting consecutive green candles, this signals bullish momentum meaning that you want to look for long trades to enter with the uptrend and with upwards momentum. On the other hand, spotting all red candles signals bearish momentum, meaning that you want to look for short trades to enter with the downtrend and downwards momentum. If you spot sideways price movement with a mix of both red and green candles, this signals indecision, consolidation, and a choppy market.
2. Spotting Reversals and Momentum Loss
Starting in a downtrend, you have all red candles before identifying a green candle that appears, which signals a loss of bearish momentum, sellers losing steam, and price consolidating. This can be seen as an early signal of a possible trend change from a downtrend to an uptrend. However, to avoid fake out reversals, it’s important to look for multiple consecutive big body momentum green candles, for instance, or price chop around sideways first before taking long entry.
Pairing a Hikanashi Candle Color Change with Key Levels
Another effective way of using Hikanashi Candles is to pair a hike and ashy candle color change with key levels. When price comes up and hits a key resistance level, for example, you can wait for multiple green candles to form before taking a long entry or look for an intraday trend change after the green candles form. The same applies when price comes back down to the key support level.
Conclusion
By using Hikanashi Candles, you can simplify your trading decisions by easily identifying trend direction, momentum, and changes. And by pairing Hikanashi Candle color change with key levels, you can increase your profitability and avoid fake out reversals. So remember to hit the like button, subscribe, and turn on the notifications bell for more trading videos.
