Made in a few minutes to debunk all the bullshit going around tradingview and everywhere about "heikin-ashi" being a holy grail trend indicator. Do not be deceived. Heikin-Ashi is a beautiful way to remove much of the noise in markets, and is light on the eyes. (nice and smooth!) I personally use heikin-ashi as a way to remove a lot of the clutter in the markets, allowing me to trade with less emotion.
While heikin-ashi is a great way to visualize trends, it is NOT a good trend indicator because its displayed values do not align with actual trading values. Therefore, entry and exit points for many of the ideas published about heikin-ashi for trade are inaccurate.
::: When Heikin-Ashi changes colour for x candles, a new trade is created on the open of the following real candle.
In practice, Heikin-Ashi is much closer to break even. As tested, Heikin-Ashi trend trading works better on pairs that have clearer definitions of trends and are less often in consolidation. (ex. USDJPY)
Usage: Switch to normal candlestick chart.
Features: Change the period for new trades. (For example: x amount of red candles after a green candle to signify short trade)
You did this slightly wrong. You're assuming the 2nd candle is the "Real" entry. But the opening of the 1st candle would be. A HA candle is green if it OPENS above previous candle open. THAT 1st candle would be your entry (no matter where it closes). You shorted yourself "Actual" returns.
Same for red HA candles. All it means is the candle OPENED below the previous open. Sorry dude, you didn't do this right.
A425-c
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@Iceman4828, Sorry man, I don't think you are right. I looked at the definition, a HA candle's color is decided by OPEN > CLOSE of the current bar. I watched HA 1min bars, and where the bar closes does matter. It will change the color, so you can only wait for the 2nd candle's open. Because the first candle you have to get the color. Please correct me if I am wrong, Thanks
manishverma83
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@Iceman4828, how to rectify that in code. Kindly suggest
hannajhajjar
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Hello, does it repaint?
hundredtoamillion
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I mean the results are not amazing, but they're not horrible either.. hehe
heavenlost
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Iam not smart but i use heikin off chart and see all the wrong entry and exit signals everywhere? I dont think this help
tickersmob
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He'll heikin ashi is God in trading....no wonder 99 fail in this game...
Same for red HA candles. All it means is the candle OPENED below the previous open. Sorry dude, you didn't do this right.