Dual Heiken Ashi Forex Trading Strategy relies on a low-noise indicator. The Heiken Ashi Smoothed indicator has very little noise even when using its standard parameters. It changes color when the trend is changing.
To further filter out false signals, we can add the slower Heiken Ashi Smoothed indicator and a 50-period parameter.
How to use Dual Heiken Ashi Forex Trading Strategy
Any Heikin Ashi strategy is a variation on the Japanese candlesticks. It is extremely useful when used in conjunction with other trading strategies such as Forex.
Heikin-ashi candlesticks filter out the noise that is common with Japanese candlesticks better than the Japanese ones. They can also highlight the market trend much more easily than other methods of plotting.
- It is difficult for traders who use trading strategies to trade gaps because each candle depends on the previous candle.
- Due to the Heikin Ashi candlestick's averaging calculation, the recent price will not reflect in the last candle
- A strong buying pressure won't generally have lower shadows or wicks.
- A strong selling pressure will not generally have an upper shadow. This is evident in the chart.
- You should be concerned if you begin to notice lower wicks in up HA candles than in down HA candles. This could indicate a trend towards a decline.
You want to trade using the Dual Heiken Ashi Strategy You can start trading with any of the AtoZ Markets-approved forex brokers
There will be times when the color would change prior to the take profit target being reached. You could have several approaches to existing trades. You could either stand your ground and not touch anything until either the stop loss or take profit target is reached.
This could be done because there is a high chance that price would quickly go back towards the direction of your trend because of the bigger picture trend.
Timeframe: 1-hour or 4-hour chart
Currency Pair: any
Session: any
Trade Setup Rules
Entry
- The Heiken Ashi smoothed candles should be faster than the slower ones.
- Slow Heiken Ashi smoothed candles should have a color of blue
- You can change the color of the Heiken Ashi Smoothed indicator's speedy indicator from red-to-blue.
Stop Loss
- Place the stop loss at the swing low, or fractal below entry candle.
Take Advantage
- The target profit should be 2x the risk of the stop loss.
Short Trade Setup Rules
Entry
- The Heiken Ashi smoothed candles should be faster than the slower ones.
- Slow Heiken Ashi smoothed candles should have a color of red
- You can change the color of the Heiken Ashi Smoothed indicator's indicator to red by clicking on it.
Stop Loss
- Place the stop loss at the swing low or fractal level above the entry candle.
Take Advantage
- The target profit should be 2x the stop loss risk.
How do I download and install an indicator
These steps are required to install the indicator onto your MT4 platform.
- At the bottom of this post, click on the " Download indicator" button.
- Save the file to your hard drive.
- Move the files to the MT4>Indicator directory in the MetaTrader4 software program file directory.
- Start your Metatrader platform.
- Navigate to " Indiators."
- To apply the template, select " Dual Heiken Ashi Forex Trading Strategy".
Do you want to try and use this trading indicator for yourself? Open a live Forex account with one these licensed Forex brokers.
T. Morris developed this indicator. AtoZ Markets has no copyrights to this trading tool.
Do you need to trade with the Heiken Ashi indicator?
This article will help you understand the Heiken Ashi indicator before you begin trading.
Our in-house trade expert Dr Yury Sfronau is a PhD in Economics Sciences. He gives you daily forex, metals and cryptocurrencies signals to buy or sell.
Since 2015, his trading strategies that are based on nonlinear dynamic models have earned more than 65 000 pip profits. There are strong signals in several markets right now that you shouldn't miss.
You want to know which ones?
The Indicator was published on 23rd July 2019 and updated on 23rd July 2020.
