newdigital, 2013.11.13 14:09
Heiken Ashi Smoothed (based on asiapacfinance.com article)
In this video, we conduct a simple review of how we would trade the Heiken Ashi Smoothed MT4 indicator
In the Video above, the silver moving line is the price. The blue and red indicators are the Heiken Ashi bars. Blue indicates bullish momentum, while red indicates bearish momentum.
This indicator will probably work well in combination with another indicator. It reduces “fake-outs” and fake reversals while keeping you in trends with momentum indicated by the color of the bars.
Heikin Ashi is a type of trading chart that originated in Japan (heikin ashi translates as average bar). Heikin Ashi charts are similar to candlestick and bar charts in that they show similar information (the open, high, low, and close of the time frame), but Heikin Ashi charts calculate the information differently.
Heikin Ashi charts are used in trading in the same manner as standard candlestick or bar charts (i.e. chart patterns are used to indicate price movements). However, Heikin Ashi charts have an additional aspect in that the direction of the bar (i.e. its color for candlesticks) is supposed to indicate the overall direction of the market, while ignoring the intermediate direction (e.g. false changes of direction).
Heiken Ashi Smoothed:
Heiken Ashi Smoothed indicator is a modified standard Heiken Ashi indicator.
The difference is that it uses smoothed price time series values instead of current ones. Such method allows to filter many false signals that could possibly have appeared, in case the indicator had been calculated in a standard way.
Author: Nikolay Kositsin