Master HEIKIN ASHI Trading ( Ultimate Guide )

in this video I will share everything you need to know about the hiken Ashi candles by the end of this video you will be able to identify high probability trade setups using the hiken Ashi candles a quick word before we start if you're serious about taking your trading to the next level you need to join our exclusive Channel membership today for a price smaller than a regular meal for 2 people you'll gain access to our three comprehensive trading courses don't let this opportunity slip away click the join button below and embark on your journey to

trading Mastery today with that being said let's get back to the video what are hien Ashi candles the word hien ASI means average bar hiken Ashi candles use the concept of averaging to smooth out the price action and give us a better understanding of the market Trend the close of a hiken Ashi candle is calculated by adding the open high low and close of the current candle and then dividing it by four the open of a hien ASI candle is at the midpoint of the previous candle's body using these two averaging techniques results in a

clearer and cleaner picture of the price action here is an example on this chart we have the regular candlesticks we can see that the candles are pretty much mixed up we can see red and green candles everywhere on the chart now here is the same chart with hiken Ashi candles here we can see a cleaner price action during up moves we mostly have green candles and in down moves we mostly have red candles so this is the advantage of using hiken ASI candles if you are finding value in this video so far then hit the

like button and subscribe to our channel so that you never miss our new videos how to read hiken Ashi candles hiken ASI chart reading is pretty simple and straightforward on the hiken ASI charts we basically have three types of candles a bullish candle is a green candle that has a green body and an upper Wick the bullish candle will have a tiny lower Wick or none at all such candles are a sign that the price is in an uptrend then we have the bearish candle a bearish candle consists of a red body and a lower

Wick it will have a small upper Wick or none at all these types of candles are a sign of a downtrend lastly we have doe candles these candles can be green or red a doe candle has a small body and large Wicks on both sides we have upper Wicks and lower Wicks that are almost equal in size this is a sign that the existing trend is exhausted and there is a pause in price movement using these three candle types we have formulated five signals on the hiken Ashi candles number one strong uptrend in a strong

uptrend we have a set of bullish green candles with no lower Wick the body of each subsequent candle gets larger and larger this shows that the uptrend is gaining momentum and is a good time to enter buy trades number two weak up Trend when the uptrend starts to weaken the bodies of the green candles begin to get smaller with each subsequent candle sometimes we also see lower Wicks start to appear this is a sign that the uptrend has lost momentum and the trend might see a pause or a reversal very soon during such times a

Trader should look to exit their buy trades number three sideways Trend after the trend we we might see a set of dogee candles one individual doe candle can be a sign of momentum loss but if we see a set of dogee candles they tell us that the price is in a sideways Trend Number Four Strong downtrend a strong downtrend can be identified when we see a set of bearish red candles with no upper Wick the body of each candle starts to get bigger and bigger this shows that the downtrend is gaining momentum and it is

an excellent opportunity to enter cell trades number five weak downtrend when the downtrend gets weak we see a set of red candles where the upper Wick starts to appear and the bodies of the candles begin to shrink this is a sign that the trend is losing momentum and we may see a momentary pause or a reversal in the trend now let's look at some examples that combine these signals with other price action factors to develop trade ideas trade examples on this chart we see that the price reversed from this area so we mark it as

a support level the next time the price comes near this level we expect the price to reverse again and move upwards soon enough the price arrives near the support level again this time we look closely at the candles in this particular down move initially we saw a set of red candles with no upper Wicks but the bodies were not increasing they were decreasing at first it shows that the down move was not strong at all then we have a red candle with a small upper Wick it is also a sign that the downtrend did not

have any momentum next we see a dogey candle with a large upper and lower Wick and the doy candle has appeared at the support level it shows that the support level is working just fine and now there's a high probability of an up move from this point finally we see this solid bullish green candle with a big body and no lower Wick this is a strong sign that the price is going up from this point on so a Buy trade could be initiated from this candle the stop loss can be placed below the candle and

the target taret can be set at the next resistance here is a cell trade we see that previously the price reversed down from this area so we mark it as a resistance level now when the price returns to the resistance we expect it to reverse downwards again we see that the candle bodies start to get smaller and smaller we don't see lower Wicks on these candles but still the shrinking of the bodies is a sign of momentum loss then we see this dogee candle with upper and lower Wicks again it is a sign of momentum

loss finally we see a red candle with a big body and no upper Wick this shows that the resistance is doing its job and the price will reverse down so we can place a cell trade at the close of the red candle we can keep our stop loss above the candle and Target this support area here is a breakout trade here we see that the price made an upside reversal around this area so we mark it as a support now when the price returns to this area we expect it to find support again and move

upwards but we see that the price starts to create these small doy candles it shows that the price is consolidating and the support is significantly less likely to hold we might see a break of the support finally the price breaks below the support with two large red candles this was a sign that the breakout was strong and we could expect a strong downward movement so we can place a cell trade on this candle we can set our stop loss above the candle and Target the next support here is a trade using the moving average we

have a 20 period moving average on the charts the price traded above the moving average and the ma was sloped upwards so we have an uptrend we also see that the moving average has supported the price on pullbacks this time when the price pulls back to the moving average we expected to find support as well we also have a support level stretching from the previous high so we have a Confluence of the support level and the moving average in this area we see see two dogey candles here that indicate that the downward momentum is extremely

weak and the price is very likely to find support then we see these two green candles that confirm our thought process and gives us a perfect trade opportunity so we enter a Buy trade at the close of this candle we can place a stop loss below the candle or the moving average on this trade we do not have a resistance level to Target so we can Target a 1 to2 risk reward ratio and this is how to use the hiken Ashi candles for your trading the truth about trading is that you must always look for

multiple confluences to identify high probability trades if you are passionate about learning then click the first link in the description below to join our exclusive Channel membership today if you like this video then be sure to hit the like button and subscribe to our channel so that we can bring high quality videos for you see you soon