Follow the prior Heiken Ashi candle for profit
Hello friends,
My purpose in this post:
1) Test a simple system using Heiken Ashi candles
2) Post my trades and results when I have time
3) Hope to help others trade
Disclaimer:
1) I am not a professional trader. Any systems or suggestions provided here are for educational purposes only. Transactions are at your own risk.
2) I don't know how profitable this system is because I've just started testing it.
3) This system is based on other systems of FF.
4) I have no commercial interests, but commercial members are welcome as long as they follow the rules.
rule:
1) Please respect others.
2) Please provide constructive suggestions.
3) Please don’t be overly negative or critical just for the sake of being overly negative or critical.
suggestion:
1) Post pictures when you can.
2) Stay calm and relaxed. We are all here to learn to improve our trading.
3) Try to make the system simpler, not more complex (e.g. avoid adding extra indicators).
--------------------------------------------------------------------------------------------------------------------------------
Heiken Ashi System:
1) Buy = the previous heiken ashi bar was bullish
2) Sell = previous heiken ashi bar was bearish
Time range:
1) Higher timeframe (daily or weekly charts preferred)
Exit rules for manual trading :
1) Exit when the heiken ashi bar changes color
2) Set your stop loss just below the previous resistance level
Exit rules for automated trading :
1) Exit when the fixed take profit or stop loss is reached
--------------------------------------------------------------------------------------------------------------------------------
My thoughts:
1) I prefer weekly charts
2) I prefer to make my trading richer and more automated
3) In my opinion this makes two main settings .
Setup A - Follow the trend:
1) Follow the previous weekly heiken ashi candlestick chart
2) Set fixed stop loss and take profit using a 1:1 ratio (for example, 30 pips for take profit and 30 pips for stop loss)
You may be thinking: "Why are TP and SL so low?"
The reason is simple: quantity.
We can make many trades per week using this criterion and my estimate is that we will have about 75% winners (this is my estimate).
Example:
30 transactions
21 = win
9 = loss
Points earned:
(21 * 30 points) = 630 points
(9 * 30 points) = 270 points Weekly profit = +360 points
**In most cases we will just follow the previous weekly trend! **
Here is an example trade I made this week on GBP/JPY with a price target of 30 pips (a winning trade).
Setup B - Capture new trends early:
1) If the weekly heiken ashi bar changes color, trade with the new color for possible trend reversal.
2) Set your stop loss below the previous week's candle and exit the trade as soon as the heiken ashi bar changes color.
Example: The last 5 weeks of heiken ashi candlesticks were bearish. The week ended bullish. Place a buy order.
**The idea of this system is to intervene early on possible trend reversals! **
Here is an example of a trade I made this week on EUR/USD with no price target and a stop loss lower than the previous week's candle (which I have now moved to breakeven levels).
That's the system I'll be exploring in this thread! If you wish, please feel free to join.
My purpose in this post:
1) Test a simple system using Heiken Ashi candles
2) Post my trades and results when I have time
3) Hope to help others trade
Disclaimer:
1) I am not a professional trader. Any systems or suggestions provided here are for educational purposes only. Transactions are at your own risk.
2) I don't know how profitable this system is because I've just started testing it.
3) This system is based on other systems of FF.
4) I have no commercial interests, but commercial members are welcome as long as they follow the rules.
rule:
1) Please respect others.
2) Please provide constructive suggestions.
3) Please don’t be overly negative or critical just for the sake of being overly negative or critical.
suggestion:
1) Post pictures when you can.
2) Stay calm and relaxed. We are all here to learn to improve our trading.
3) Try to make the system simpler, not more complex (e.g. avoid adding extra indicators).
--------------------------------------------------------------------------------------------------------------------------------
Heiken Ashi System:
1) Buy = the previous heiken ashi bar was bullish
2) Sell = previous heiken ashi bar was bearish
Time range:
1) Higher timeframe (daily or weekly charts preferred)
Exit rules for manual trading :
1) Exit when the heiken ashi bar changes color
2) Set your stop loss just below the previous resistance level
Exit rules for automated trading :
1) Exit when the fixed take profit or stop loss is reached
--------------------------------------------------------------------------------------------------------------------------------
My thoughts:
1) I prefer weekly charts
2) I prefer to make my trading richer and more automated
3) In my opinion this makes two main settings .
Setup A - Follow the trend:
1) Follow the previous weekly heiken ashi candlestick chart
2) Set fixed stop loss and take profit using a 1:1 ratio (for example, 30 pips for take profit and 30 pips for stop loss)
You may be thinking: "Why are TP and SL so low?"
The reason is simple: quantity.
We can make many trades per week using this criterion and my estimate is that we will have about 75% winners (this is my estimate).
Example:
30 transactions
21 = win
9 = loss
Points earned:
(21 * 30 points) = 630 points
(9 * 30 points) = 270 points Weekly profit = +360 points
**In most cases we will just follow the previous weekly trend! **
Here is an example trade I made this week on GBP/JPY with a price target of 30 pips (a winning trade).
Setup B - Capture new trends early:
1) If the weekly heiken ashi bar changes color, trade with the new color for possible trend reversal.
2) Set your stop loss below the previous week's candle and exit the trade as soon as the heiken ashi bar changes color.
Example: The last 5 weeks of heiken ashi candlesticks were bearish. The week ended bullish. Place a buy order.
**The idea of this system is to intervene early on possible trend reversals! **
Here is an example of a trade I made this week on EUR/USD with no price target and a stop loss lower than the previous week's candle (which I have now moved to breakeven levels).
That's the system I'll be exploring in this thread! If you wish, please feel free to join.






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