Heikin-Ashi candles smooth noise and highlight trend direction. A shift from a series of bearish HA candles to a bullish one, or vice versa, can indicate a change in momentum. This strategy trades those color flips and uses a percentage stop for protection.
The logic calculates Heikin-Ashi values from regular candles. When the HA close crosses above the HA open after a bearish sequence, a long is taken. A cross below after a bullish run opens a short. The stop is placed a fixed percentage away from entry.
The method is simple yet effective during choppy swings when traditional candlesticks are noisy.
Entry Criteria: Heikin-Ashi candle changes color.
Long/Short: Both.
Exit Criteria: Stop-loss.
Stops: Yes, percentage based.
Default Values:
CandleType = 15 minute
StopLoss = 2%
[*]Filters:
Category: Reversal
Direction: Both
Indicators: Heikin-Ashi
Stops: Yes
Complexity: Basic
Timeframe: Intraday
Seasonality: No
Neural networks: No
Divergence: No
Risk level: Medium