Trend trading with Heiken Ashi Candlestick Patterns to smooth price action.
Japanese Candlestick Chart Patterns are excellent, but you can use a variation of them, Heiken Ashi, to smooth their patterns, making it easier to identify when trends begin and end.
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Barry Burns
Top Dog Trading
TopDogTrading.com
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The information contained on this video is for informational and educational purposes only. We are not registered as a securities broker-dealer or as investment advisers, either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Trading and investing involves substantial risk. Financial loss, even above the amount invested, is possible. Seek the services of a competent professional person before investing or trading with money.
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Barry!
Thanks for this video! In TOS you can set the ‘wicks’ on/off – which would it be for this?
Barry! In TOS with the wicks on for the Tic charts it shows the wicks for both ends whether up or down bars…
That’s strange. I’m not sure how TOS does it (my example is with NinjaTrader), but the way I demonstrate here is the traditional way to read Heiken Ashi.
Tried it on the ‘time’ TOS chart and it works… Just doesn’t seem to like the ‘tick’ chart with it… Also, if you are getting the green candles and then it gives you a red bar – would you sell your position or wait till that bar close to see how long it is? Or, would you need a ‘confirmation’ red bar to close the position?
Oops… forgot to add this… if you got those green candles and then a ‘neutral (or couple)’ candles and then a red candle – would you wait for this candle close to sell position (or would you need a red candle confirmation (to close), first?
Thanks for sharing that. And yes, on any type of bar you don’t really know what you’ll have until it closes.
thanks for the knowledge, been using Heiken Ashi for a while but never knew about the shape indicating the trend by the wick, great info, I am now smarter
Wonderful Michael, I’m glad I could help with your trading.
“Charts are the map of the market psychology.” Great quote, Dr. Burns; thanks for the informative video!
You’re very welcome Steve.
Barry….your teaching style is absolutely the best…keep these coming…been a student with your two Top Dog Foundations courses…..and some of the bonuses. You make things so easy to follow….thanks again!
Thank you for the kind words Steve.
Hi Barry, can we use Heiken Ashi with your courses strategy (module 1&2) or works only with normal Japonese candles?
keep the great job you are doing.
Regards
Hi Nuno, yes, you can use them with my “5-Energy” method from my courses.
great tool in addition to others you have mentioned, I’m sure it will be very helpful in finding retraces also with your methodology Very interesting and would like to see more on the Heiken Ashi. thanks, Tony
You’re exactly right Anthony, great observation.
What an interesting perspective. Looking forward to trying this with your 5 energy system.
Yes, Levi, that’s the smart thing to do, use it as one “piece of evidence” with other things on your chart.
I never knew such lofty information on fx trading exists here,could you please give me links of other useful fx videos of your?Meanwhile,many thanks for sharing this!
Sikiru
You’re very welcome Sikiru. Just type “Top Dog Trading Forex” into the YouTube search bar and you’ll find many more of my FX videos.
I never knew such lofty information on fx trading exists here,could you please give me links of other useful fx videos of yours?Meanwhile,many thanks for sharing this!
Barry I have seen many forex videos from many professional traders and mentors but I must say you make it so simple and easy to understand. I loved the 5 energy concept and how it does wonders. Thank you for all the help. Stay blessed.
Thank you for the kind words Pallav, much appreciated.
Great video! Short, sweet and to the point 🙂
Thank you Lewis, I’m glad you liked it.
I like how you explained it. Keep it up..
Thank you, I’m glad you found the tutorial helpful.
Dr. Barry- another insightful video commentary on heiken ashi candles. Not many trading educators talk about these, but it does seem that these candles are better for someone like myself with little trading experience, they might be a little smoother ride for the less experienced trend follower…
Good info. Barry, you forgot to mention that on most Heiken Ashi charts the prices are averages and appear different on a regular candlestick chart.
Good point Jim. Thank you for contributing that.
As always I know a bit more now than I did before watching esp. using Heiken Ashi vs. reg. Candlestick Charts-thanks again Dr. Barry
You’re very welcome Rick.
thanks Barry, this really helps me to stay in the trend
You’re very welcome Howard, I’m glad the tutorial was helpful for you.
Hi Barry. Do you combine tick charts with heiken ashi bars into your day trading or just simply tick charts, with standard Japanese candles? Curious to know…
Heiken Ashi bars have advantages (as pointed out in this video), but also some disadvantages especially for day trading, so I personally like to you the regular candles with tick charts when day trading as it is easier to see exactly where the high and close of a bar is that I’ll be using to enter since I day trade very short-term intervals. Good question my friend!
Thank you for sharing! I really did (do) appreciate this video about the Heiken Ashi Candlestick Patterns!!! In fact I subscribed and smashed the bell icon too!!!
That’s great Joshua!
Would these work for using tick charts? I know that you talk about on your website that tick charts are not good for candle stick patterns but could this be an exception to that?
Yes, this would be an exception Graham.
@TopDogTrading Thank you sir!! Love your stuff. I have taken over 2 dozen courses and have read every book on trading on amazon and your stuff is the best.
Can Heiken-Ashi candlesticks be used to determine entries, or do you need to convert back to regular candlesticks to determine an entry point?
Hi Vince. Yes, you can use them to trigger your entry into trades as well, but you may not get as many entries as you would with regular candlesticks.
@TopDogTrading Getting fewer entries is OK as long as they are higher quality entries with improved odds. Should entries with Heiken-Ashi be with buy at market, since the Heiken Ashi doesn’t represent the true stock price? Where should the stop loss be placed?