This second version of the Heikin Ashi system adds an EMA filter. Trades occur only when the direction of the Heikin Ashi candle agrees with the trend defined by the EMA. The filter helps avoid counter-trend signals that the pure HA approach might generate.
Entry Criteria:
Long: HAClose > HAOpen and Close > EMA
Short: HAClose < HAOpen and Close < EMA
[]Long/Short: Both sides
[]Exit Criteria:
Opposite signal
[]Stops: None
[]Default Values:
EmaLength = 20
[*]Filters:
Category: Trend following
Direction: Both
Indicators: Heikin Ashi, EMA
Stops: No
Complexity: Low
Timeframe: Short-term
Seasonality: No
Neural networks: No
Divergence: No
Risk level: Medium