Dual Heiken Ashi Forex Trading Strategy


You can now download the Dual Heiken Ashi Forex Trading Strategy for free on AtoZ Markets indicators gallery.

Dual Heiken Ashi Forex Trading Strategy is based on a low noise indicator. As you would notice, the Heiken Ashi Smoothed indicator naturally has little noise, even with its standard parameters. It usually changes color only when the trend is changing. Adding the slower Heiken Ashi Smoothed indicator with a 50-period parameter allows us to filter out false signals even further.

How to Use Dual Heiken Ashi Forex Trading Strategy

Any Heikin-Ashi strategy is a variation of the Japanese candlesticks and is very useful when used as an overall trading strategy in markets such as Forex.

Unlike the regular Japanese candlesticks, heikin-ashi candlesticks do a great job of filtering out the noise we see with Japanese candlesticks. They are also able to highlight the trend of the market much easier than other plotting methods.

  1. Because each candle relies on the previous candle for the calculation, it would be difficult for traders who trade gaps as a trading strategy
  2. Recent price will not be reflected in the last candle due to the averaging calculation used by the Heikin Ashi candlestick
  3. Strong buying pressure will generally not have lower shadows (wicks)
  4. Strong selling pressure will generally not have an upper shadow. You can clearly see this in the chart above.
  5. If you start to see upper wicks on down HA candles and lower wicks on up HA candles, be alert for a weakening trend.

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.

Indicators:

  • Heiken_Ashi_Smoothed (fast parameters)
    • MaMethod: 2
    • MaPeriod: 6
    • MaMethod2: 3
    • MaPeriod2: 2
  • Heiken_Ashi_Smoothed (slow parameters)
    • MaMethod: 2
    • MaPeriod: 50
    • MaMethod2: 3
    • MaPeriod2: 2

Timeframe: 1-hour or 4-hour chart

Currency Pair: any

Session: any

Buy (Long) Trade Setup Rules

Entry

  • The fast Heiken Ashi Smoothed candles should be above the slow Heiken Ashi Smoothed candles.
  • Slow Heiken Ashi Smoothed candles should be color blue.
  • Enter on the color change of the fast Heiken Ashi Smoothed indicator from red to blue.

Dual Heiken Ashi Forex Trading Strategy

Stop Loss

  • Set the stop loss at the swing low or fractal below the entry candle.

Take Profit

  • Set the target take profit at 2x the risk on the stop loss.

Sell (Short) Trade Setup Rules

Entry

  • The fast Heiken Ashi Smoothed candles should be below the slow Heiken Ashi Smoothed candles.
  • Slow Heiken Ashi Smoothed candles should be color red.
  • Enter on the color change of the fast Heiken Ashi Smoothed indicator from blue to red.

Stop Loss

  • Set the stop loss at the swing high or fractal above the entry candle.

Take Profit

  • Set the target take profit at 2x the risk on the stop loss.

How to download and install an indicator?

In order to install the indicator on your MT4 platform, you need to follow these steps:

  1. Click on “Download Indicator” button located at the bottom of the post.
  2. Save the file to your computer.
  3. Extract and move the files into MT4>Indicator folder of the MetaTrader4 software file directory.
  4. Restart your Metatrader platform.
  5. Navigate to “Indicators.”
  6. And select “Dual Heiken Ashi Forex Trading Strategy” template to apply it on the chart.

 

Note: This indicator was developed by T. Morris. AtoZ Markets does not carry any copyrights over this trading tool.

The Indicator was published on 23rd July 2019 and updated on 23rd July 2020. 

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