Heikin ashi with targets

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.