Heiken Ashi with Moving Averages

The trading system with the Heikin Ashi (HA) indicator allows you to trade in the direction of the trend and should not exit prematurely because HA fundamentally filters the noise and fluctuations in lower prices that are not useful. This system uses a candlestick whose direction of movement is the same as that which occurs on the market, but there are differences: 1. In the table of price movements, each candlestick has 4 different prices, namely: the opening price (open), the highest price (high), the lowest price (low) and the closing price (close). Each candle that occurs afterwards has nothing to do with the previous candle. 2. In the Heikin Ashi candelabrum (HA) each candle is calculated based on the quantities of the previous candle, namely: HAS opened = (previous candle opened HA + previous candle closed) / 2 HA close = (current open candle price + candle price current closed + highest current candle price + lowest current candle price) / 4 HA high = the highest between: the highest price of the candle now, opened or closed HA low = the lowest among: the lowest price of the candle now, opened or closed. The use of the candlestick HA is the same as the ordinary candlestick. The following is the usual daily chart XAU / USD and the daily chart XAU / USD in the form of HA:

In the image above the direction of the HA card is clearer and contains no noise. Gap prices are also eliminated so that the reading is clearer. In addition, all price action rules also apply to HA candlesticks.

Chart Heiken Ashi

Time Frame 15 min or higher.

Currecy pairs: any.

Simple moving average 9, close.

Simple moving average 9, close.

Trading rules Heiken Ashi with Moving Averages

Long entry: When the curve of the ema 9 indicator intersects ema 18 from the bottom, wait for the price to rally above the ema curve. After some time the price movement will under go a correction (downward shift) in order to cut one or both curves of the ema indicator (A) The signal to buy is when the price returns to bullish at the end of the correction, marked with a bullish HA candle (in blue). Entry can be purchased at the market price (market price), with a stop loss a few pips below the lowest entry level of the candle.

Short Entry: When the curve of the ema 9 indicator intersects ema 18 from above, wait until the price drops below the ema curve. After some time the price movement will under go a correction (move up) in order to cut one or both curves of the ema indicator (B) The signal to sell is when the price is again bearish at the end of the correction, marked with a bearish HA candle (red). The sale of the entry can be made at the market price (market price), with a stop loss at several pips above the highest entry level of the candle.