Forum on trading, automated trading systems and testing trading strategies
Sergey Golubev, 2016.07.13 11:36
How To Trade - Heiken Ashi indicator and How Does It Work (adapted from the article)
Heikin-Ashi chart looks like the candlestick chart, but the method of
calculation and plotting of the candles on the Heikin-Ashi chart is
different from the candlestick chart. In candlestick charts, each
candlestick shows four different prices: Open, Close, High and Low
But Heikin-Ashi candles are different and each candle is calculated and plotted using some information from the previous candle:
1- Open price: the open price in a Heikin-Ashi candle is the average of the open and close of the previous candle.
2- Close price: the close price in a Heikin-Ashi candle is the average of open, close, high and low prices.
3- High price: the high price in a Heikin-Ashi candle is chosen from one
of the high, open and close price of which has the highest value.
4- Low price: the low price in a Heikin-Ashi candle is chosen from one
of the low, open and close price of which has the lowest value.
So candles of a Heikin-Ashi chart are related to each other because
the open price of each candle should be calculated using the previous
candle close and open prices, and also the high and low price of each
candle is affected by the previous candle. So a Heikin-Ashi chart is
slower than a candlestick chart and its signals are delayed.
The Heikin-Ashi chart is delayed and the candlestick chart is much
faster and helps us to make more profit. Why should we use a Heikin-Ashi
chart then? As it was already explained, because of the delay that the
Heikin-Ashi chart has, it has less number of false signals and prevent
us from trading against the market. On the other hand, Heikin-Ashi
candles are easier to read because unlike the candlesticks they don’t
have too many different patterns.
Free to DownloadThere are many Heiken Ashi indicators (and EA) on MT5 CodeBase, for example :
Trading signals module based on Heiken_Ashi_Smoothed indicator
Heiken Ashi Smoothed
An Example of a Trading System Based on a Heiken-Ashi Indicator
I want to remind the following links:
MetaTrader 5 Help - Open an Account
MetaTrader 5 Android OS Help - Opening a Demo Account
MetaTrader 5 iPhone/iPad Help - Connecting to an Account and Opening a Demo Account
Simplified way to request a real account in MetaTrader 5 Android
GE Mladen and Mtiwana Sirs
i have found the following indicators in this forum
1. TriangularMA centered bands - mtf - alerts......Does this repaint as i read it somewhere?
2. EMA extrapolated keeps on changing
If these do repaint could you help and tell some other indicators
Thank you in advance'
Of centered TMA - check this thread : https://www.mql5.com/en/forum/181241
Of extrapolated EMA : any extrapolation is a subject of changing - there is no extrapolation made (yet) that does not do that if the underlying data changes
What i felt was that the line crossed some candles and then after some time the line moved away from them and then came back again and crossed them. IF a postion is taken based on this then the criteria followed get changed . is this the way postion shud be taken or is it bad?
That is a fitting indicator
As with all fitting indicators you should not trade it as signals, but as estimation
You could read this : https://en.wikipedia.org/wiki/Extrapolation for some more information of what is extrapolation and how could it be used
Thank you so much.
I am reading the links. Meanwhile can u suggest any other band indicator which can be used as a signal and which wont change postion later
Thanks and Regards
Try some like :
and so on and on and on ...
Something Interesting to Read
Sergey Golubev, 2017.09.16 05:40
Expert Advisor Programming for MetaTrader 4
This book will teach you the following concepts:
All of the source code in this book is available for download, including an expert advisor framework that allows you to build robust and fully-featured expert advisors with minimal effort.
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