How effective are Heikin-Ashi candle colors?
Visually, they might seem like the perfect path to the Holy Grail, especially when trends are consistently long. However, it’s essential to understand that while longer trends are more common in higher timeframes, they are rare in lower timeframes, which often experience more expected noise.
For those trading in lower timeframes, keep an eye out forthe trend weakening after four consecutive same-color Heikin-Ashi candles. At that point, it’s wise to tighten your stop-loss and closely monitor haDelta.
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August 23: Volatility Index (VIX) weekly – 15.86 / Trying to make a bottom. Not there yet.
Heikin-Ashi
(-) haDelta is below its average.
(-) haOscillator is negative.
(-!) VIX is in a downtrend. To reverse it, haClose should be > 12.34 by the end of August 30 vs. 16.08 now. High probability to reverse the downtrend.
Non Heikin-Ashi
(-) Below the buy-stop @25.83, 62% above the close.
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August 23: SP-500 weekly – 5,634.61 / Still bullish
Heikin-Ashi
(+) haDelta is still positive.
(+) haOscillator has reversed.
(+) SP-500 is in an uptrend. To reverse it, haClose should be < 5,641 by the end of August 30 vs. 5,596 now.
Non Heikin-Ashi
(+++) Please note that the weekly stop-loss set in mid-November 2023 has yet to be triggered.
(+) The weekly Stop-loss is @5,274.28, 6.39% below the close.
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August 24: Bitcoin weekly– 64,342 / Uptrend started
Heikin-Ashi
(+) Positive haDelta.
(+) BTCUSD is in an uptrend. To reverse it, haClose should be < 60,479 by the end of the next week vs. 61,448 now.
Non Heikin-Ashi
(-) Below the buy-stop @72,406, 12.53% lower. Strong resistance.
(++) The weekly chart shows an Inverse positive divergence for the haOscillator in 2024.
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August 24: Ethereum weekly – 2,798 / Timid uptrend.
Heikin-Ashi
(+) haDelta is bullish.
(+) ETHUSD is in an uptrend. To reverse it, haClose should be < 2,576 by the end of the next week vs. 2,694 now.
Non Heikin-Ashi
(-) Below the trailing-stop @3,720 32.9% above the close.
(++) Even on the weekly chart, haOscillator displays an inverse positive divergence since the start of 2024.
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August 23: EUR/USD weekly – 1.1190 / Uptrend
Heikin-Ashi
(+) haDelta is above its average.
(!!) haOscillator shows weakness, almost at the 90-level.
(+) EURUSD is in an uptrend. To reverse it, haClose should be < 1.1148 by the end of August 30 vs. 1.1109 now.
Non Heikin-Ashi
(+) Above the trailing-stop@1,0808 3.4% below the close.
(+) Inverse positive divergence haOscillator for 2024.
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