gann heikin-ashi trading strategy

This is an unconventional Heiken Ashi trading strategy, but information technology's the better move you can possibly make with this affair.

The Heiken Ashi indicator is the "Easy Button" of Forex trading.dannbsp; If you'atomic number 75 smart, this should be a red flag.

IT would be great if we could use information technology and win with it.dannbsp; Can we still do that?

What It Do?

The Heiken Ashi indicator is old.dannbsp; Very secondhand.

I often crap on indicators older than spot Forex itself (1996), and for good reason.dannbsp; This is a bit different nonetheless.

Heiken Ashi has deuce colors.dannbsp; Connected MT4, which Heiken Ashi is enclosed, those colors are red and white.

Edward Douglas White Jr for long, red for short.dannbsp; The math behind it is unimportant, and not crucial to you successful, so don't worry roughly it.

Let's get a load at why it's different than most indicators before we start figuring out how to use it to our advantage.

Great For Beginners

Beginning Forex traders ask all the help they rear get.

They have a horrible combination of no money direction, altitudinous emotions, and dire information.

It's bankruptcy wait to happen.

All new trader at the 3 calendar month mark

Anything, and I mean ANYTHING that can take the weak chemical element out of their trading is a good thing.

Indicators like Heiken Ashi can really help oneself present.

Why?dannbsp; Because it's binary.dannbsp; Either information technology's long or short.dannbsp; There's nothing to read.dannbsp; There are no settings to tweak.

This force out be keen, because new trading motive to be focusing 99% on money management and keeping things consistent.

But unweathered traders ne'er do this.

They spend all of their time finding the unexcelled swop entries they can, which in the cease helps them no.

Having something look-alike Heiken Ashi or Renko is bully because information technology rump shift the concentre to what really matters, at least early on.

Bad For Beginners

Heiken Ashi is not not bad for trade entries.dannbsp; Overall, it performs pretty indisposed in reality.

Using it exclusively for trade entries and exits results in bad entries AND bad exits.

The screen nature of the Heiken Ashi indicator wish often give you a trade entree in a very unfavorable spot.

Practitioners of monetary value action and algorithmic trading will all know this particular entry is a no-go.dannbsp; Heiken Ashi, naturally, can't see these things.

We all erotic love Ray, but I wouldn't trust his trade entries.

Great trade entries, regardless of how we try to attain them, are settled on where price is congeneric to where it was ahead.dannbsp; We wrack our brains trying to find the best methods to obtain the most surgically precise points to optimally set up our money.

Heiken Ashi doesn't do that.dannbsp; And IT's obvious.dannbsp; And information technology hurts your bank account at last.

Take any chart.dannbsp; Place the Heiken Ashi indicator along it.dannbsp; Find oneself the places where it obviously squandered you money.

At those particular spots, take the index off and see where information technology would have actually gotten you into a trade and so down of the trade.

It can buoy be scary bad sometimes.

Act up not use Heiken Ashi for trade entries.

The crazy part about all of this is even after what I just said, almost all site dedicated to using this indicator was created to show you how enceinte incoming trades with Heiken Ashi is.

The 99% is the 99% for a reason, folks.

There's A Better Elbow room

If you've learned anything from this website, there's e'er a better way of doing things.

Only you need to pay close attention indeed you know just how to go off just about doing information technology.

Heiken Ashi is dreadful for trade entries, but can, and I'll say IT again, CAN be acceptable for money management, at least early on in your trading career.

You will find better slipway to manage winning trades As you progress.dannbsp; But for straightaway, you can practice any damage with this affair if you do it right-wing.

How and more importantly WHEN you expend this indicator is the key.

Musical scale Out First

We glossed over in the Ratios video how to scale out of a winning trade.

Eastern Samoa far as WHEN to role the Hieken Ashi indicator, use it to manage a winning trade after you've already scaled out half of your trade, and moved your stop loss to break-even.

This is the headstone.

And cipher else will tell you to practice it this way.

They will tell you to use it for entries, which is an writ large fail.

Then Make This

Anyway, erstwhile you've scaled out, the Heiken Ashi indicator's color will certainly be in your favor — white for long, red for short.

All you need to arrange at this point is follow IT until the color changes, then exit out when it does.

Having a trailing discontinue loss is a good idea here as well, merely if you are troubled with finding a good die down indicator, this is a estimable substitute until the metre comes where you find out one you can depend on.

This, traders, is the lone viable use for the Heiken Ashi indicator.dannbsp; And even then, you should supervene upon IT at some point.

End

Readers of this blog should anticipate this away nowadays — you won't get to where you want to Be by unoriginal means in this game.

It's set up to penalise those who think and routine this path.

You birth to live on outside the lines, and when conventional means gives you something to use, you either dismiss it, operating theatre try somehow to find a portion of it to extract roughly value out of it.

Just be thankful we are able to find SOME wont for a favourite indicator.

It's certainly better than most.

— VP