Trader DNA
write 20 words summary based on this youtube script without saying in this videoNot many traders know about one of the simplest indicators that depicts such well-known candlesticks this indicator is high kanashi haikenashi charts are becoming more and more popular among traders and there are many trading strategies build around this type of charts these hike and ashy candles are a perfect tool for traders who like Following trends to their very extent heiken ashy candles also looks much more simplified basically heiken ashy charts make candlestick charts more readable for traders who want to know when to stay in a trade and write a strong trend and when to get out when the trend weakens although heiken ashi has many advantages A lot of traders prefer to analyze classic candlestick charts but what if you could combine both charts in order to have the classic candles and still be able to plot hikey and ashy candles we can do that by using smoothed haikanashi candles in today’s video we’ll take a look at The high kanashi smoothed indicator and i’ll show you how you can apply this tool and configure it to your preference if you want more videos more often please smash the like button subscribe and turn on the notifications bell so that you know exactly when new content is released Everything we discuss in this video can be used for currency trading stock trading and crypto because price action stays relatively consistent across different assets so we’re going to go very in depth in this video the main difference between hiking ashy charts and traditional candlestick charts is that hikanashi charts the average price moves Creating a smoother appearance helping traders to identify past price movements more easily on the other hand candles on traditional japanese candlestick charts frequently change their color which can make them difficult to read because the high kanashii price bars are averaged they don’t show the exact open and close Prices for a particular time period you’ll notice that hikanashi charts have a tendency for its candles to stay white during an uptrend and stay red during a downtrend this is in contrast to traditional japanese candlesticks that alternate color even if the price is moving strongly in one direction haikanashi chart is much smoother Looking in terms of price action helping traders to identify past price movements more easily this is why many traders prefer to use the hikinashi candle since it reduces the noise on the chart and allows them to analyze trends more clearly what makes haikanashi different from a traditional japanese candlestick Chart is how the price is displayed in terms of the open and the close if you look closely at the hike and ashy chart you’ll notice that a bar in the hikenashi candlesticks starts from the middle of the one before it and not where the previous candlestick had closed not A available longer white candles with no lower shadows indicate a strong uptrend the downtrend gets stronger with longer red candles and no upper shadows let your profits ride the trend gets weaker with smaller bodies and with the emergence of lower and upper shadows candles with a small body surrounded by Upper and lower shadows indicate a consolidation or trend change the trend reversal could follow when you spot multiple candles with small bodies and long upper and lower shadows doji like candle or a sudden color change now what are the limitations of haikanashi just like any other indicator used for technical analysis Haikenashi is useful but it does have some weaknesses or limitations while the traditional japanese candlesticks are derived from the actual prices hikanashi candlesticks are not because the haikanashi candlesticks are averaged they do not show the exact open and close prices for a particular time period let’s show an actual example Here’s a hikanashi chart of apple on the daily time frame focus on the last candlestick the candle is red which means the candle closed lower than it opened its open price was 130.00 and its close price was 128.80 now let’s look at a daily chart of apple using a traditional japanese candlestick Chart focus on the last candlestick a couple of things to notice the candle is green which means the candle closed higher than it opened this is reality the candle actually ended up for the day compare this to hikanashi where it showed a red candle its open price was 128.80 Its close price was 128.97 do you see the difference even though the real candle closed green hyken ashy is signaling that apple stock is still in a downtrend make sure you know what price you’re looking at hiking ashy charts obscure actual price information the closing price is considered Important for many traders but the actual closing price is not displayed on a hike and ashy candlestick but we can fix this problem by using the smoothed haiken ashi the haikenashi smoothed indicator is a modified version of the regular haikanashi candlestick charts but the main difference between the Regular heiken ashi indicator and the haikanashi smoothed indicator is that the second type of indicator plots the haikenashi candlesticks as a moving average and now as you can see you’ll get a better perspective of the markets you can see both the regular candlestick or bar chart alongside the hike and ashy smoothed indicator This is not possible if you use the regular heiken ashy chart that is offered as a default indicator traders have developed various trading strategies built around the hikinashi smoothed indicator one of the major rules of using this indicator is in determining the trends in the markets The general rule of thumb is that the markets are in an uptrend when the smooth haikenashi indicator is bullish or white and the markets are in a downtrend when the smooth heiken ashy indicator is bearish or red the haikanashi smooth is a versatile trading indicator that can be used to Build a new trading strategy or it can also be used to complement your existing trading strategy it’s a trend following indicator and up trends price tends to stay above the smoothed hyken ashi and downtrends price typically stays below it and the first possibility of a change in trend is when price crosses Through the indicator downtrends start to reverse when prices cross back up and through the smooth hike in ashi while up trends show signs of reversal when price falls through the smooth high kanashii below it the heiken ashy smooth indicator can be installed as you would install any regular indicator Once you move the file into your mql indicators folder you can refresh your list of indicators so that the trading platform picks up this new indicator the settings for the smooth hikinashee indicator are very simple depending on your trading style scalping date trading or swing trading you can change the value of the Indicator to suit your trading needs here are several settings you could try periods smoothed heiken ashi this is suited to scalping techniques tracking the strong momentum and the trend in the short term the five period smooth heiken ashi acts as support in the strongest trends this line is best used in low volatility Trends with strong momentum you can also use it as a trailing stop in this method after you are in the market with an open position the stops are adjusted to a few pips above or below the highs and the lows of the heiken ashy smoothed indicator 12 period smoothed high kanashi 12 Period smoothed hikanashi is a great setting to keep you on the right side of the major market trend it’s usually the first line to be lost before any real trouble begins meaning any reversals in current trend from my back testing this is one of the best smooth high canashi indicator settings It can be used as a standalone signal in some stocks and currency markets that tend to trend strongly in one direction for long periods 50 period smoothed high kenashi 50 period smoothed hikanashi acts like an intermediate term moving average again the 50 period smoothed heiken ashi can work As long as you use the indicator on assets with less volatility as noted the 50 period smoothed hikanashi is widely used because…
Title: Understanding the Power of High Kanashi Smoothed Indicator in Trading
Introduction: The Growing Popularity of High Kanashi Haikenashi Charts
Not many traders are aware of the simplicity and effectiveness of the High Kanashi Haikenashi charts as an indicator. These charts have been gaining popularity among traders, mainly because they provide a more simplified and readable representation of candlestick charts. Traders who prefer following trends find these charts to be a perfect tool for identifying strong trends and determining when to stay in or exit a trade. In this article, we will explore the advantages of Heiken Ashi candles, the differences between Heiken Ashi charts and traditional candlestick charts, the limitations of Haikenashi, and the use of the High Kanashi Smoothed indicator.
Understanding Heiken Ashi Candles: A Simplified Approach to Candlestick Charts
Heiken Ashi candles are known for their simplified and smoothed appearance compared to traditional Japanese candlestick charts. The average price movement in Heiken Ashi charts creates a smoother presentation, making it easier for traders to identify past price movements. Unlike traditional candlesticks, Heiken Ashi candles tend to stay white during uptrends and red during downtrends. Traders often prefer Heiken Ashi candles due to their ability to reduce chart noise and provide a clearer analysis of trends.
The Difference Between High Kanashi and Traditional Candlestick Charts
One of the notable differences between the two chart types lies in how they display price information. While traditional Japanese candlestick charts show the exact open and close prices for a specific time period, Hikanashi candlesticks only provide an averaged representation of these prices. This averaging effect in Hikanashi charts allows for a smoother presentation of price action, enabling traders to easily identify past price movements. This smoothing effect makes Hikanashi charts more preferable for trend analysis.
Analyzing Trends and Reversals using Haikenashi Candles
Heiken Ashi candles offer valuable insights into trend analysis. Longer white candles with no lower shadows indicate a strong uptrend, while longer red candles with no upper shadows point to a pronounced downtrend. As the trend weakens, the bodies of the candles become smaller, accompanied by the emergence of upper and lower shadows. Additionally, candles with small bodies enclosed by upper and lower shadows indicate a possible consolidation or trend change. The reversal of a trend can be indicated by multiple candles with small bodies and long upper and lower shadows or a sudden color change in the candles.
Limitations of Haikenashi: Obscured Actual Price Information
Despite its advantages, the Haikenashi indicator has some limitations and weaknesses. Unlike traditional candlesticks, which are derived from actual prices, Haikenashi candlesticks do not display the exact open and close prices for a specific time period. Traders who consider the closing price important may find it challenging to determine the actual closing price using Haikenashi charts. However, this limitation can be overcome by using the Smoothed Haikenashi indicator.
Introducing the High Kanashi Smoothed Indicator: A Better Perspective of the Markets
The High Kanashi Smoothed indicator is a modified version of the regular Haikenashi candlestick charts. Unlike the regular Haiken Ashi indicator, the Smoothed Haikenashi indicator plots the Haikenashi candlesticks as a moving average. This modification allows traders to analyze both the regular candlestick or bar chart and the smoothed Haikenashi indicator simultaneously. This feature enhances the trader’s ability to combine and interpret information from different perspectives.
Utilizing the High Kanashi Smoothed Indicator in Trading Strategies
Traders have developed various trading strategies around the High Kanashi Smoothed indicator. One of the primary applications of this indicator revolves around identifying market trends. The general rule of thumb is that the market is in an uptrend when the Smoothed Haikenashi indicator is bullish or white, and in a downtrend when it is bearish or red. This versatile indicator can be used to build new trading strategies or complement existing ones. It is particularly effective in tracking strong momentum and trends, providing support and acting as a trailing stop.
Configuring the Smoothed Haikenashi Indicator to Suit Your Trading Style
Configuring the Smoothed Haikenashi indicator is a simple process that allows traders to customize the tool to their preferred trading style. Depending on whether you engage in scalping, day trading, or swing trading, you can adjust the indicator’s value accordingly. Different settings, such as the period’s smoothed Haikenashi, offer unique advantages for different trading styles. Traders can experiment with various settings to find the best fit for their trading needs.
Conclusion: Enhancing Trading Strategies with the High Kanashi Smoothed Indicator
The High Kanashi Smoothed indicator presents traders with a powerful tool for analyzing trends, identifying market reversals, and making informed trading decisions. By combining the benefits of traditional candlestick charts and the clarity of Haikenashi candles, this indicator enables traders to gain a comprehensive view of the market. Understanding its limitations and configuring it based on individual trading preferences allows for enhanced precision and accuracy in trading strategies. As with any technical analysis tool, continuous learning and practice are crucial for maximizing the effectiveness of the High Kanashi Smoothed indicator.
