Heiken Ashi candlestick filters out some noise in an effort to better capture the trend. For those that use trailing stops and are trend traders, flipping back between the two candlestick charts is quintessential for traders. In the chart I showed how a trader could use trailing stops to profit from the biggest trends. He or she would set stops with long or short positions and use the previous Heiken Ashi candlestick (green or red - lower or higher) as a gauge to stay in a trade or to get out of a trade. Overal Heiken Ashi is a chart I will look at often to know if I'm on the right side of the trade.
I don't understand how you are determining when to close a position and when not to, I see long positions being closed when the HA candles are still green and the bottom of the HA candle is above the bottom of the previous candle. but they were left open though times when the HA bars turned red, like from Aug 20 2012- Sept 16 2012 in the main chart you posted. Also how do you determine how many pips to use for trailing stops?
Thanks for the nice post
QuantitativeExhaustion
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Trailing stop should be where the candle stick tail ends, if long bottom tail of previous closing candle, if short top tail of previous closing candle.
Follow the PDF for more instructions on when to enter or when to exit.
QuantitativeExhaustion
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I'm not an avid HA trader, i was simply presenting an idea, because when I published this chart HA was new to TradingView.
cryptographic1
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This chart for instance -
How do you determine to close where you did rather than waiting for the red HA candle?
QuantitativeExhaustion
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If I remember right, chart more than two years old, it's based on the previous candle body. If a candle body is red while in a trend and the body closes below the previous HA candle, then you exit the trade.
QuantitativeExhaustion
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QuantitativeExhaustion
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Heiken Ashi boost confidence knowing you are on the right side of the trade.
Oscarthedog
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Why do the candlestick bodies vary in length and size so severely? Might it affect trend lines? For example, can you please take a look at the last candlestick of each image below. Is this why you switch between charts? Japanese to confirm trends , channels, and patterns? Heiken Ashi to determine price direction and impulsivity? Thanks kindly for taking the time. Great post.
mmcma17
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@Oscarthedog one is tracking price and one is tracking average price. So it shows a trend better IMO. Easier to see where bullish momentum is taking over.
ZigaZaga
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Thankfully - a simple practical explanation without having to master Kanji or study the ancient traditions of Eastern commerce! The author may be interested to know that this page comes up 4th when searching Google for "heiken ashi vs candlestick".
Thanks for the nice post