Heikin Ashi Candle Indicator

Heikin Ashi Candle Indicator

HeikinAshi Candle is a MetaTrader indicator, used to determine market trends on Forex charts. Filters buy-sell signals and spots key price target zones

The Heikin Ashi Candle has been created as a technical trend trading indicator for MetaTrader 4 users. This indicator makes the use of the popular trend indicator “Heikin Ashi” more convenient for newbie traders.

Besides, forex currency pairs, Heikin Ashi Candle is also capable to generate correct trend signals on stock, commodities, and crypto charts. This indicator appears as a suitable tool for analyzing market trends on MTF charts. Traders can apply it on any timeframes from 1-minute to daily charts of the MT4 platforms. Therefore, you can focus on both scalping and intraday trading at the same time by using a single trend indicator.

Furthermore, this indicator delivers real-time trend signals that help you to assess potential buy-sell setups at the key swing areas of the price. As a result, it lets you focus on breakouts and swing trading opportunities even in a range-bound market situation. According to our review, it works well as a solo indicator but can be added to any trend-based forex trading strategy for upgrading trading plans.

How to determine buy-sell opportunities using the HeikinAshi Candle trend signal

Heikin Ashi Candles are plotted in a different form than regular price candles. Generally, the regular MT4 candles don’t depend on the previous candle’s data while plotting a fresh candle. Such candles appear independently and only reflect the present changes in price action.

On the other hand, Heikin Ashi depends on the average open and close price of the previous bar while opening a new candle. It demonstrates a chain of price-action changes that helps you to spot the reversal areas of the market trend.

A green candle with a long upper tail signals for a bullish trend condition of the market. Conversely, during a bearish trend, the indicator plots a red candle with a long lower shadow. A change in the candle’s color and shape indicates the possible reversal of the current trend condition.

The Heikin Ashi signal helps you to decide between buy or sell options during sensitive situations at the market. For example, a bullish Heikin Ashi bar appears following a Doji candle indicates for an uptrend price move. Also, the price breaks a key support/resistance level with a green/red Heikin Ashi Candle helps you in determining key breakout trading opportunities.

Conclusion
Heikin Ashi represents an easy trend analysis technique that is widely popular among millions of traders around the world. The Heikin Ashi Candle makes the use of this effective trend-identifying indicator even easier for newbie traders. However, it requires some practice for beginners to understand how this indicator reacts in different situations in the market. Once you master this indicator, you can also apply it for creating your own trend trading strategy.