Two Timeframes, Two Opposite Heikin-Ashi Signals: Which One Should You Trust?
In trading, it's not uncommon to face conflicting signals from different timeframes when using Heikin-Ashi charts.
The key question then becomes: "Which timeframe should guide your decision-making: timeframe 1 or timeframe 2?"
Take the current market situation, for example. The daily Heikin-Ashi charts (TF1) indicate haDelta turning above its average, suggesting a potential upward move.
On the other hand, the weekly charts (TF2) show haDelta turning below its average, signaling possible downward pressure.
For short-term traders who rely on TF1, it's wise to wait for 1-2 bars to see how the trend in TF2 evolves.
In most cases, the longer timeframe (TF2) holds more weight and is more reliable, so the higher probability leans toward TF2 "winning the contest."
The decision ultimately depends on your trading style: are you more inclined to follow the immediate trends or the broader, more established ones?
Note: Mistakes can be corrected using a stop.
--
August 30: The daily Volatility Index (VIX) stands at 15, indicating a short-term negative outlook.
Heikin-Ashi
(-) haDelta is below its average at zero.
(-) haOscilaltor is confirming a top.
(-!) VIX is in a downtrend. To reverse it, haClose should be > 15.20 by the end of September 6 vs. 15.27 now. Tight.
Non Heikin-Ashi
(-) Below thebuy-stop @25.82, 72.16% above the close.
--
August 30: S&P 500 daily closed at 5,634.61. Short-term outlook is bullish, showing an inverse positive divergence on the daily chart throughout August.
Heikin-Ashi
(++) haDelta is positive at zero.
(+) haOscillator has reversed.
(!!!!) SP-500 is starting an uptrend. To reverse it, haClose should be < 5,623 by the end of September 6 vs. 5,623now. The weekly haDelta has just turned down.
Non Heikin-Ashi
(+) The daily Stop-loss is @5,458, 3.36% below the close.
--
August 31: Bitcoin daily is 59,198. Short-term trend indicates an attempt to go higher. However, the weekly chart suggests a potential negative reversal.
Heikin-Ashi
(+) Positive haDelta.
(+) BTCUSD is in an uptrend. To reverse it ,haClose should be < 58,753 by the end of the next week vs. 59,280 now.
Non Heikin-Ashi
(-) Below the buy-stop @55,796, 5.75% lower.
(++) The weekly chart shows an Inverse positive divergence for the haOscillator during the second half of August.
--
August 31: Ethereum's daily figure stood at 2,529.5.. In the short term, it appears to be going higher. However, the weekly haDelta suggests a potential decline in ETHUSD.
Heikin-Ashi
(+) haDelta is bullish.
(+) ETHUSD is in an uptrend. To reverse it, haClose should be < 2,507 by the end of the next week vs. 2,523 now.
Non Heikin-Ashi
(-) Below the trailing-stop @2,821 11.54 % above the close.
--
August 23: The daily EUR/USD is 1.1047. Short-term trend: Downtrend. Status: Oversold.
Heikin-Ashi
(-) haDelta is below its average.
(-!) haOscillator is negative, at oversold levels.
() EURUSD is in a downtrend. To reverse it, haClose should be > 1.1036 by the end of September 6 vs. 1.1166 now.
Non Heikin-Ashi
(+) Above the trailing-stop @1.1018 , 0.25% below the close.
(+) The haOscillator displays an inverse positive divergence for August 2024.
--
