Heikin ashi is one of the less used methods of price visualization. Int his forex strategy HA is employed to identify end of a correction within the trend and to determine our take profit and stop loss levels.
Used forex indicators
Heikin Ashi (default settings)
Alligator (default settings)
We trade in 15 min timeframe using any of the major currency pairs
Forex strategy rules
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BUY:
Alligator lines are separated and untangled. Lined from the top to bottom: green, red, blue. This will identify uptrend.
After minimum of two bearish Heikin Ashi candles, we enter the trade long on first bullish Heikin Ashi candle close.
We place stop loss one pip below the low reached in our current swing down.
Take profit: After a series of white (bullish) HA candles, first red (bearish) HA candle closes.
SELL:
Alligator lines are separated and untangled. Lined from the top to bottom: blue, red, green. This will identify downtrend.
After minimum of two bullish Heikin Ashi candles, we enter the trade long on first bearish Heikin Ashi candle close.
We place stop loss one pip above the high reached in our current upswing.
Take profit: After a series of red (bearish) HA candles, first white (bullish) HA candle closes.
