ULTIMATE Heikin Ashi Trading Strategy (Cheat Codes Unlocked)

hey guys welcome back to another episode in this video we're going to show you how to use hike and ashy candles like a pro now if you want more trading videos make sure to hit the like button subscribe but most importantly turn on the notifications Bell as this goes a long way in supporting our team so on the left is the alphabet stock using traditional candlesticks notice all the gaps in price for some this can make it more difficult to apply traditional price action analysis and techniques now on the right is the same alphabet stock and same chart except using hiking ashy candles notice how the gaps are removed creating an easier to analyze chart and allowing for Price action Concepts and techniques to be more easily applied so traditional candlesticks are calculated using the price open high low and close of the time frame you are using whereas hike and ashy candles are calculated using the open close data from the last period and the open Hilo closed data of the current period to create a compilation Candlestick in simplified terms this helps you filter out noise remove price gaps and provides a smoother view of price so that you can more easily identify Trend Direction Trend momentum and Trend changes so let's now go through how to access hikanashi candles on your charts so this is your traditional Candlestick chart at the top here select hikanashi if you want to access the exact charting platform we use head on over to our website at wisetrade.com so the first traditional way hiking ashy candles are used is for identifying strong Trends and momentum gain when you spot consecutive green candles this signals bullish momentum meaning you want to look for long trades to enter with the uptrend and with the upwards momentum not against it when you spot all red candles this signals bearish momentum meaning you want to look for short trades to enter with the downtrend and downwards momentum not against it when you spot sideways price movement with a mix of both red and green candles this signals indecision consolidation and a choppy market now moving on to the second traditional way to use hikanashi candles which is for spotting reversals and momentum loss starting in a downtrend you have all red candles before you identify a green candle that appears which signals a loss of bearish momentum sellers losing Steam and price consolidating this can be seen as an early signal of a possible keyboard possible Trend change from a downtrend to an uptrend now something to be cautious about looking for just one green candle on its own can sometimes lead to fake out reversals notice how these small Greek candles that appeared ended up being fake outs as price continued down afterwards so to get around this problem of fake out candle color changes you can apply these three techniques technique number one look for multiple consecutive big body momentum green candles to form so you have all red candles before a green candle appears if you entered right away on just the one green candle this would have been a fake out so what you do is you wait and see if you get multiple consecutive big body momentum green candles to appear like this to show that price is actually gaining momentum in the opposite direction and upwards before looking for possible long reversal trade entries again looking for just one green candle like this can lead to fake out reversals instead look for multiple consecutive big body momentum green candles to appear like this before looking for possible long reversal trade entries moving on to technique number two look for price to chop around sideways first you have all red candles before a green candle appears instead of taking a long entry right away and risk being faked out wait for price to chop around and move sideways like this to show a consolidation of price before looking for possible long entries this can also be seen as a form of double bottom which is a reversal pattern and finally technique number three look for an intraday Trend change confirmation after you have a green candle appear we'll cover this more in depth in the strategies section now going in the opposite direction in an uptrend you have all green candles before a red candle appears which signals a loss of bullish momentum buyers losing Steam and price consolidating this can be seen as an early signal of a possible keyword possible Trend change from an uptrend to a downtrend again looking for just one red candle on its own can sometimes lead to fake out reversals notice how you had these small red candles appear which were fake outs as price continued on up afterwards so to get around this problem of fake out candle color changes you apply the same three techniques we previously discussed technique number one look for multiple consecutive big body momentum red candles to form like this to show that price is actually gaining momentum in the opposite direction and downwards before looking for possible short reversal trade entries technique number two look for price to chop around sideways first you have all green candles before a red candle appears instead of taking a short entry right away and risk being faked out wait for a price to chop around and move sideways like this to show a consolidation of price notice that price that makes a lower low which is a trend change pattern and is when you could start looking for reversal short trade opportunities and finally technique number three look for an intraday Trend change confirmation after you had a red candle appear we'll cover this more in depth in the strategies section now that you know the traditional ways of using hikanashi a more effective way to use it is to pair a hike and ashy candle color change with key levels so before we continue let us know in the comments below right now what topics we should cover next be very specific as always please hit the like button as it goes a long way in supporting our team so price came up hit and reversed giving you a key level of resistance as price came back up to the level you had all green hikanashi candles showing a gain of bullish momentum and buyers in full control you then had a red bearish candle form right as price reaches the key resistance level which shows momentum loss as buyers are aware of the key level and taking profit once you have an intraday Trend change confirmation you would look for short entry points let's show this again these two reversal points give you your key support level as price comes back down you add all red candles before a green candle appears you either wait for multiple green candles to form before taking a long entry or use our preferred method which is to look for an intraday Trend change after the green candles form this reversal Point here gives you your key level of support as price comes back down you would all red candles before a green candle forms right as price reaches the level again you either wait for multiple green candles to form before taking a long entry or look for an intraday Trend change after the green candle forms now notice how here when price comes back down to the key level no green candle appears which shows sellers are in complete control and that there is no momentum loss and that the sellers do not care about the support level this time around no candle color change no long trade opportunity this reversal Point here gives you your key resistance level as price came back up you had all green candles before a red candle appears right at the key resistance level which presented a short trade opportunity along the bottom this reversal Point here gives you your key support level as price came back down all red candles before a green candle appears right at the key level which presented a long trade opportunity now notice how here where price comes back down to the key level no green candle appears which shows sellers are in complete control and that there is no momentum loss and that sellers do not care about the support level this time around no candle color change no long trade opportunity now as you should know by now using only one time frame isn't enough as you can often get caught in fake out trade opportunities which is why you need to use multi-time frames which brings us to our next topic look for a hike and ashy candle color change at a key level followed by an intraday Trend change confirmation so that both time frames are confluent in their price action so these are some killer trade setups we covered with our members this is the Intel stock on the left is the Intel daily time frame and on the right is the Intel one hour time frame this reversal Point here and swing low creates a high quality key support level as price came back down to the level you would all ride candles before a green candle appears right at the key level which presented a long trade opportunity now you can wait and see if you get multiple green candles like Vista form before looking for a long entry point or if you want an earlier more secure and accurate entry point look inside of this area here after the green candles form but on the lower one hour time frame on the right for any form of price action that signals a trend change from a downtrend to an uptrend and to confirm the candle color change now you could have identified the descending triangle pattern followed by a break above the pattern and higher high which confirms the trend change and is when you would start looking for long entries through the even lower intraday time frames now there are many ways to manage a winning position but to keep it simple for now you can set your take profit level here at the supply Zone so let's show this again this is the Uber stock on the left is the daily time frame and on the right is the Uber one hour time frame this reversal Point here gives you your key support level as price came back down to the level you had all red candles before a green candle appears right at the key level which presented a long trade opportunity Now using only one time frame can often lead to fake out entries so what you do is you look inside of this area here but on the lower one hour time frame on the right for any form of price action that signals a trend change from a downtrend to an uptrend in this case what you had was a descending triangle pattern followed by a break above the pattern in higher height this is when you would go to the even lower intraday time frames to find a long entry point this is the DraftKings stock on the left is the daily time frame and on the right is the one hour time frame this reversal Point here gives your key support level as price came back down to the level you would all write candles before a green candle appears right at the key level which presented a long trade opportunity once you look inside of this area you edit inverse Head and Shoulders pattern neckline here and once you had a break above and higher high you would look for a long entry point through the even lower intraday time frames this is the Disney stock on the left is the daily time frame and on the right is the one hour time frame this reversal Point here gives you your key support level as price came back down to the level you had all red candles before a green candle appears right at the key level which presented a long trade opportunity Now using only one time frame you could wait and see if you get multiple green candles to form like this followed by a break of the long-term trend line before taking a long entry or for an earlier more secure and accurate entry you look inside of this area on the lower intraday time frame on the right for Trend change price action what you had in this case was an inverse Head and Shoulders pattern neckline here and once you're at the break above and higher high you would find a long entry point using our entry and exit strategy so one more trade setup this is the Ford stock on the left is the daily time frame and on the right is the one hour time frame this reversal Point here gives you your key support level as price came back down to the level you would all write candles before a green candle appears right at the key level which presented a long trade opportunity once you look inside of this area you had a falling wedge powder then once you had your break above and higher high you would find a long entry point through the even lower intraday time frames now moving on to the next topic which is using haikanashi to spot false or fake out trade setups that you otherwise would not see using regular candlesticks so before we continue again let us know in the comments below right now what topics we should cover next be very specific as always please hit the like button as it goes a long way in supporting our team this is the Tesla stock on the left is Tesla with regular candlesticks and on the right is Tesla with hike and Ashley candlesticks these reversal points here make this a key support Zone as price came back down this long trade set up here was one that many thought would have been a great trade as you had candlesticks reacting to the key support Zone but now if you looked at the same trade setup here using the hike and ashy chart you would have noticed that you had all red candles without any green candles appearing at the key level meaning sellers are still in full control and bearish momentum is still in full effect as a result price only stalled at the level before continuing down now a key point this method doesn't invalidate regular candlesticks but you can use hikanashi candles as extra confirmation to validate the quality of a trade setup let's show this again this is the Peloton stock on the left is Peloton with regular candlesticks and on the right is Peloton with hiking ashy candlesticks these reversal points here make this a resistance Zone as price came back up this short trade set up here was one that many thought would have been a great trade as you would Kendall 6 reacting to the Q resistance Zone but now if you looked at the same trade setup here using the hike and ashy chart you would have noticed that you had all green candles without any red candles appearing at the key level meaning buyers are still in full control and bullish momentum is still in full effect as a result price only stalled at the level before continuing upwards now moving on to the next topic using hikanashi to spot trade setups not visible using regular candlesticks this is the Nvidia stock on the left is NVIDIA using regular candlesticks and on the right is NVIDIA using hiking ashy candlesticks this reversal Point here gives you a key support level as price came back down you were adding this key level for a possible long entry this is also an inverse Head and Shoulders reversal pattern now here lies the issue using the regular Candlestick chart on the left you didn't have clear-cut price action showing a high quality long trade setup but in contrast if you used the hike and Ashley chart on the right a trade setup was more easily identifiable the hike and ashy chart showed all red candles before a green candle appeared at the key level and at the right shoulder of The Head and Shoulders reversal pattern as always to confirm the long trade setup you need to look inside of this area on a lower time frame for Price action that signals a trend change from a downtrend to an uptrend so let's pull up the one hour time frame and put it beside this one on the left is the daily time frame we just looked at and on the right is the one hour time frame this trade set up here we just identified is this same area here you had a perfect ascending triangle pattern form inside of the candle color change from the higher time frame once you had the brake above the pattern and higher high the trend change is confirmed and the candle color change from the higher time frame is confirmed this is when you would go to the even lower time frames to find an exact long entry point and exit Point using our entry and exit strategy and key tool now moving on to the next topic using hike and ashy Kendo color changes to validate key levels for trade setup opportunities this is the Wing Stop stock these two reversal points here give you your first key level this recent swing low Point gives you your second key level now when price is approaching both these levels which one do you look for Price action to format before looking for a possible long trade setup the answer is simple wait and see which key level forms a candle color change as price hit the first level you add a candle color change followed by multiple green candles which presented a long trade opportunity and therefore validating the first key level if price broke through the level without any green candles forming and continued down to the next key level here you would again wait and see if you had a candle color change at that next key level before validating it for a long trade setup now you also had a second trade set up here through a continuation entry at the resistance turn to new support because again all red candles before a green candle appears showing that the pullback is over and that the next leg of the move has begun so let's show this again this is the American airline stock these three reversal points here give you your key support level then also this recent swing low gives you another key support level now when price is approaching both these levels which one do you look for Price action to format you should already know the answer once price reaches the first level you add a candle color change followed by sideways chop then bullish green candles off of the level presenting long trade opportunities again if price didn't react to the level and broke through and continued downwards with more red candles then you would instead look for a possible candle color change at the next key level before considering a long entry so let's get more advanced this is the beyond meat stock you spot this very key level with multiple reversal points and it's also a swing low as price approached the level you were waiting for a possible long trade entry but there was no candle color change meaning there was no long trade opportunity and price breaks through now right after price breaks through the very key level you notice green candles appearing which shows momentum loss and signal to you that this is a possible false Breakout again key levels should be treated as general areas where you look for Price action to occur so even though price broke slightly past the key level the hike and Ashley candle color change still validates this area you can then use the false breakout to your advantage knowing that all the breakout short Traders are trapped and that all their stop losses will get hit once price reverses as always you still need a trend change confirmation after the green candle appears and further validate the false breakout so let's pull up the one hour time frame and put it beside this one on the left is the daily time frame we just looked at and on the right is the one hour time frame this area here where the false breakout in Candle color change occurred is this same area here on the one hour time frame you had a trend change pattern through the higher low and higher high which confirms the reversal confirms that this was indeed a false breakout and confirms that this is a very key support level that is valid this time around you would then go to the even lower time frames to find an exact long entry point and exit Point using our entry negative strategy and key tool so what we've covered in this video is only scratching the surface if you want to take your trading to the next level head on over to our website at wisestrade.com as we have a ton of content on our site that won't ever be available on YouTube as always if you want more videos more often please leave a video suggestion below right now also make sure to hit the like button as it goes a long way in supporting your routine and lastly make sure to go subscribe to our Instagram account at WISE trade so thanks for watching and I'll see you in the next episode [Music] thank you [Music]

Channel: Wysetrade

Views: 203,198

Keywords: heikin ashi, heikin ashi trading strategy, heikin ashi candlesticks, day trading strategy, scalping strategy, heikin ashi strategy, heikin ashi candlestick strategy, forex strategy, best trading strategy, day trading, swing trading strategy, trading strategy, stock trading, swing trading, heikin ashi candlesticks strategy, heikin ashi trading, best trading strategy for beginners, stock trading for beginners, stock trading course, stock trading strategies

Id: Wjhm9SuylH8

Length: 20min 47sec (1247 seconds)

Published: Tue Mar 14 2023