Heikin ashi with targets
- Indicators
- Version: 1.0
- Activations: 5
This smoothing process eliminates "market noise"—those erratic, small spikes that frequently scare traders out of a solid trend.
How to read it at a glance:
Strong Uptrend: A long sequence of green (or blue) candles with no lower wicks.
Strong Downtrend: A long sequence of red candles with no upper wicks.
Trend Weakness / Reversal: Small candle bodies with both upper and lower wicks (indecision).
The Buy Process (Long Entry)
Condition: The previous candle (Bar 2) was Red, and the most recently closed candle (Bar 1) turned Green.
Confirmation (Optional but safer): Bar 1 has no lower wick, proving strong upward momentum.
🔴 The Sell Process (Short Entry)
Condition: The previous candle (Bar 2) was Green, and the most recently closed candle (Bar 1) turned Red.
Confirmation: Bar 1 has no upper wick, proving strong downward momentum.
The Exit Process (Closing the Position)
There are two popular ways to exit using Heikin Ashi:
1. The Color Flip (Aggressive): Exit a Buy trade the moment a closed candle turns Red. Exit a Sell trade the moment a closed candle turns Green.
2. The Indecision Wick (Conservative/Early Warning): Exit when you see a candle with a small body and wicks on both sides. This means the trend has run out of fuel, allowing you to secure your profits before the actual price reversal occurs.
