Best Heikin-Ashi Strategy for Forex
Being able to use different charts and indicators, such as Heikin-Ashi, is very important if you plan on being successful in the world of Forex. Heikin-Ashi is a specific type of Japanese candlestick chart which is used to identify trends and reversals.
Being able to read this specific type of candlestick chart is therefore ideal for creating trading setups. When it comes to Forex, one of the favorite ways to trade is through scalping, or placing lots of small trades. Well, the Heikin-Ashi candlestick chart can be used to set up Forex scalping trades, and very well too.
Therefore, today we want to talk about the best Heikin-Ashi strategy for Forex scalping. As you will see from none other than Andrew himself, this trading technique is not overly hard to master, and it can be quite profitable too.
Andrew’s Best Heikin-Ashi Strategy for Forex Scalping
The main thing which we are here to talk about today is Andrew’s new trading tutorial which focuses on Heikin-Ashi candlesticks. If you are not familiar with these, read the sections below to familiarize yourself.
To be specific, today’s tutorial is all about using this particular candlestick charting method to perform scalp trading in Forex. In case you don’t know what scalping is in Forex, move on to the sections below for a precise explanation on the matter.
As you can see from the included tutorial video, using Heikin-Ashi candlesticks to perform scalp trading in Forex can indeed result in massive profits.
Andrew is able to make over 100+ pips per day using this method. In other words, this is a great Forex trading strategy for making lots of small profits in a short period of time. In order to really master Heikin-Ashi Forex scalping, you should first familiarize yourself with scalping and with this type of candlestick chart.
The best and easiest way to learn how to perform this kind of Forex trading is to watch the full length and comprehensive video lesson which we have included right here.
A Word on Forex Scalping
In order to put Andrew’s strategy to use, you will first need to be familiar with the most basic part of it, scalping. Forex scalping involves executing a large number of trades with small lot values. In other words, instead of investing $1,000 into 5 trades, you might invest that same amount of money into a total of 20 trades.
The point with Forex scalping is to invest a minimal amount of money into many small trades. The aim is to win the vast majority of trades in order to accumulate profits. No, the profit from a single trade will not be very high, but scalping is all about sheer quantity, or in other words, the amount of trades placed, not the size of the trades.
What is Heikin-Ashi?
Heikin-Ashi is a type of indicator that can be used in Forex trading. This indicator is similar to the Japanese candlestick indicator, and is thus known as the Heikin-Ashi candlestick indicator. Just like with Japanese candlesticks, these candlesticks also have a body, an upper candlewick, and a lower candlewick.
With Japanese candlesticks, the each bar starts where the previous bar closed, whereas with this particular type of candlestick, each bar starts from the middle of the bar before it. This is the biggest distinguishing factor between these two types of charting types.
One of the major benefits of using Heikin-Ashi candlesticks as opposed to normal Japanese candlesticks is that they help to greatly smooth price action. In other words, they work much better at filtering out noise which Japanese candlesticks cannot filter out. These candlesticks are much more adept at isolating noise, which is of course important for trade setups.
The reason why this candlestick chart has such a smooth appearance is because the charts are created using a modified formula that uses two-period averages. This can be beneficial for spotting reversals and ongoing trends.
What Heikin-Ashi Tells You
This is a trading technique most often used by technical traders. This is an indicator designed to identify trends as well as reversals too. This is of course important if you plan of scalping in Forex. Being able to see trends and reversals is necessary, especially for scalping. The Heikin-Ashi candlestick chart is also ideal for identifying past price movements, plus it also helps to reduce false signals in choppy markets.
Reading Heikin-Ashi Candlesticks
Let’s quickly take a look at some of the different Heikin-Ashi candlestick patterns and what they mean. You need to be able to accurately read these candlesticks if you plan on putting Andrew’s strategy for Forex scalping to use.
- If you see a hollow or green candle that does not have lower shadows, it indicates a strong uptrend.
- Candles that have small bodies and are surrounded by upper and lower shadows indicates that a trend change or reversal is in the works.
- If you see red or filled out candles, this indicates a downtrend, and filled or red candles with no top shadows indicate a very strong downtrend.
The Heikin-Ashi Strategy for Forex Scalping – Final Thoughts
If you plan on using a scalping strategy for Forex trading, using the Heikin-Ashi candlestick chart to determine trends and reversals can come in very handy. Once again, the comprehensive lesson is in the video which we have included here. Andrew does a really great job at explaining it all in great detail.
Once again, in order to use this Heikin-Ashi strategy for Forex scalping, you need to be familiar with both scalping and these particular candlestick charts.
What we would highly recommend is joining the Income Mentor Box Day Trading Academy. It’s one of the most highly regarded day trading schools in the world. It’s a great place to familiarize yourself with charts, scalping, candlesticks, and so much more. It’s where you can learn all of the basics to then put this strategy to use without any issues.