Heiken Ashi | Foreign exchange indicator download-MT4/MT5 resources-MetaTrader 5 resources

Hello, this method comes from a trader you either love or hate. Personally I always have an open mind and as a good trader friend of mine in South Africa is trading using his black box system and making very good profits although you have to use good money management I thought I should take a look at it myself.

2 advantages of this trading method

Only 1 indicator so the chart is nice and clean Mechanical access criteria

As far as I know it can be used on any time frame, although I would like to use it for daily end-of-day trading on a dozen currency pairs.

Open the weekly and daily charts of any currency pair and place the Heiken Ashi Smoothing Indicator on both.

Check weekly to see if your trend is up, so the blue bar goes to your daily chart and wait for the bar to change from blue to red (which indicates a pullback), then go long:

A - HA turns blue again
B - We have a downward bar

With the weekly trend in place, which is HA blue, I personally want a good entry opportunity, I get this long opportunity by going long on the down bar with the weekly trend in place, I'm not too worried... I certainly don't want to go long on the up bar, only to see a 75% retracement the next day, which happens surprisingly often.

The target is up to you. I tend to choose the 5-day average true range, or go long the first red HA bar. My stop loss is usually the last swing low

Here are some pictures showing the entries

I have shown all the information about EUROCHF.

1 day 1 week chart
1 hour 4 hour chart The last 3 signals on the daily chart Please note that the daily signals are all on..

Shorts on the long bar, go long on the lower bar

have fun

Paulus