🔴 EMA-Heiken Ashi | This is The Trading Strategy The Top 5% Use (and it makes trading way too EASY!)

hey guys welcome back to another episode in this video we will be going through our haikanasi trading strategy in depth and how we use it in combination with price action high kanasi candlesticks are great because they smooth the price action as a result much of the noise shown in traditional japanese candlesticks is eliminated with high kanasi charting and it helps make the trade entry and exit decision simpler if you want more videos more often please smash the like button subscribe and turn on the notifications bell so that you know exactly when new content is released the very important point before we start everything we discuss in this video can be used for currency trading stock trading and crypto because price action stays relatively consistent across different assets so we're going to go very in depth in this video are you confused with not knowing exactly how or when to enter into a trade with so many different candlestick patterns traders can get paralyzed by over analysis on whether a certain candlestick is an entry or not and have you gotten into a trade where it was going in your favor but you got out too early it's frustrating to get out of a position only to see the trade go further in the direction of the trade you exited let's face it as a trader we have many things to analyze at any given time if you take too long to decide whether it's time to enter into a trade because of your complicated entry rules it might mean a missed opportunity for you and if you exit your position too early then it could affect your profitability in the long run but what if you had a simple way of knowing exactly when to get in and out of your trade without any complicated analysis then you want to consider using the high kanasi bars to time your entries and exits in this video i will share with you a simple haikanasi strategy to simplify your entries and exits so you will know exactly when it's time to enter or exit a trade and now what is the haikanasi technique the haikanasi technique is a japanese candlestick based technical trading tool that uses candlestick charts to represent and visualize market price data it is used to identify market trend signals and forecast price movements the haikanasi method uses average price data that helps to filter out market noise the absence of market noise results in a clear illustration of market trends and direction which helps determine potential price movements the trading technique assists traders in identifying when they should hold on to a trade pause a trade or identify if a reversal is about to occur the haikanasi trading technique was developed by munich hama in the 1700s the technique shares some characteristics with the traditional candlestick charts used in trading but differs in how the values for candlesticks are computed in japan the word heiken means average for balance and the wordasi means bar per foot hence high kanasi means average bar resonating with the trading technique which uses the average price of the security the difference between hikanasi and traditional candlesticks the main difference between the traditional candlestick chart and the high kanasi chart is that the latter uses a modified formula based on two period moving averages instead of open high low and close prices hence the technique generates a smoother chart making it easier to spot trends and reversals the high kanasi charts also obscure gaps and some price data the left chart is using traditional candlestick bars and the right chart it's using high kanasi bars you can see that with the high canassi bars it's much more smoother this is why some traders prefer to use the haikanasi candles since it reduces the noise on the chart and allows them to analyze trends more clearly what makes haikanasi different from a traditional japanese candlestick chart is how the price is displayed in terms of the open and the close if you look closely at the heiken aussie chart you'll notice that each of the haikanasi candlesticks start from the middle of the candlestick before it and not from the level where the previous candlestick had closed high kanasi candlesticks act this way due to the way they are calculated if you're interested here's the calculation high kanasi close equals average of open high low and close high can i see open equals midpoint of previous high kanasi bar high kanasi high equals highest of high close and open high can i see low equals lowest of low close and open by the way please don't bother to memorize this formula and don't even think about trying to understand why it's calculated this way it will not help you be more profitable or help you become profitable at all just understand that it's meant to help you identify trends better in the market also don't mistake the haikanasi bars as a trading system because it's not if you go long whenever you see a bullish bar or go short whenever you see a bearish bar then you will go broke very quickly like the candlestick bars it's just giving you information on the market haikanasi price action patterns with candlestick bars you have many different types of price action patterns you have the doji gravestone doji and the dragonfly doji you have the pin bars you have the engulfing candlesticks and the list goes on and on there are literally tons and tons of candlestick patterns but with the high kanasi bars i've categorized them to just three main types of price action patterns first bullish bars with the bullish high kanasi bars you will notice that there's only a wick at the top of the bar but there's no wick at the bottom as long as this is an up bar with no wick at the bottom we consider this a bullish signal second bearish heikenosi bars the bearish hikanasi bars are simply the opposite of bullish high kanasi bars they have a wick at the bottom but not wick at the top as long as this is a down bar with no wick at the top we will consider this a bearish signal third indecision heiko nasi bars to simplify the haikanasi bars i've categorized all bars that have wicks at the top and bottom of the bars as an indecision hike in aussie bar so regardless of whether the bar color is bullish or bearish as long as there are wicks on both sides we will consider this an indecision high kanasi bar why use high kanasi bars now that you know what are high kanasi bars and you know the three different types of haikanasi price action patterns the question you might be asking right now is why use the high kanasi bars for our trading and the answer is because it helps make the trade entry and exit decision simpler and now how to enter into a trade using high kanasi bars while it might be tempting to go long whenever you see a bullish hike in aussie bar or go short whenever you see a bearish high kanasi bar please resist your urge to do so i know there are people out there teaching to do this but i know you're smarter than that so don't do it to have an edge trading the markets you need to have certain criteria to be met before entering into a trade buying rules or long position criteria number one the higher time frame must be in an uptrend what this means is that the high time frame has to be making higher highs and higher lows if you're trading the one hour chart then the higher time frame would be the four-hour chart and if you're trading the hour chart then the higher time frame would be the daily chart i don't like to trade any time frame lower than the one hour chart because not only is it tiring to watch but the commissions and spread will eat away a significant amount of your edge at lower time frames but that is not to say that it's not profitable trading lower time frames it's just more difficult because your spread and commission would be a bigger percentage of your trade parameters than in the higher time frames criteria number two the 10 exponential moving average is above the 30 exponential moving average i use the 10 email and 30 ema to determine the momentum of the trend criteria number three the time frame you're trading on must have both criteria one and two as well once there are these three criteria in place i will look to go long when the price bounces off either of the exponential moving averages and the first bullish high kanasi is formed at a higher low like this then place stop loss below the low of the current swing low criteria for a short trade now that we know the criteria for a long trade the criteria to get into a short trade is just simply the opposite criteria number one the higher time frame must be in a downtrend this is denoted by price forming lower highs and lower lows criteria number two the 10 exponential moving average is below the 30 exponential moving average this is straightforward and you should have no difficulties identifying this on your chart by now criteria number three the time frame you're trading on must have both criteria one and two as well once you have all three criteria i will look to go short when price bounces off either of the exponential moving averages and the first bearish high kanasi is formed at a lower high how to exit a trade using high kanasi bars as for exit because this is a trend trading play we want to exit only once the price has formed an opposite hike in aussie bar so for long trades we only want to exit when a bearish high kanasi bar is formed and for short trades we only want to exit when a bullish high kanasi bar is formed as you can tell it becomes so much simpler to determine when to exit now sometimes if you are in a long trade you will get faked out of your position because a bearish high kanasi bar only to see the next bar become a bullish hike in aussie bar or vice versa if you're in a short trade but that's fine there's no way you're going to catch every single bit of every trend there is ultimately if you are profitable from your trades as a whole over a series of trades then that's all that matters trading examples all right enough theory here's a trade example to show you exactly how to enter an exit into a short trade in this chart you can see that the market formed a lower high and bounced off the 30 exponential moving average once you see that happen the next step is to wait for a bearish high kanasi bar to form when it's formed go short at the close of the bar from there the market dropped pretty quickly and indecision heiken asi bars started to form this is not a good reason to get out because it could just be consolidating before the price goes down again however in this case the price did not go down further instead a bullish hikanasi bar was formed and that means to get out of the trade at the close of the bar here's a trade example of how to get into a long trade in this chart you can see on the left hand side that the price has spiked up pretty quickly and then started consolidating consolidation in an uptrend is a good sign because this could mean that price can go up further and the market did bounce off the 10 exponential moving average and formed the first bullish hykenasi bar go long at the close of the bar price did go up further before an indecision high kanasi bar is formed immediately after the first indecision high canassi bar is formed the next bar after that is a bearish haikanasi bar that's the signal to exit out of the trade and fortunately for us price did eventually go much lower after we exited the trade however not all trades are going to be like this as i've said this a number of times already it doesn't matter if you do not catch the whole movement of the trend it's impossible to do so what you can only do is take whatever you can based on your trading system and in the long run that will lead you to profitability here are other examples of haikanasi trading strategy [Music] [Music] so [Music] [Music] do [Music] do [Music] so [Music] so [Music] [Applause] [Music] so [Music] [Music] high kanasi bars are great because they smooth the price action as a result much of the noise shown in traditional japanese candlesticks is eliminated with high kanasi charting and it helps make the trade entry and exit decision simpler as always if you learn something new or if you want more videos more often make sure you subscribe click the notification bell and leave us a like to show your support see you next time [Music] do you

Channel: Trader DNA

Views: 1,016,005

Keywords: Forex Trading, Stock Trading, Crypto Trading, Heiken Ashi Indicator Strategy

Id: p7ZYrxZo_38

Length: 16min 23sec (983 seconds)

Published: Fri Apr 23 2021