In the Real World of Using Heikin-Ashi Candles
When traders first come across Heikin-Ashi colored candles, they often feel a surge of excitement, thinking the two-color sequences will easily lead to big profits.
However, this optimism usually fades quickly.
The reason? Markets don’t move in straight lines—they go through cycles of trends and consolidations (Achille’s heel), which can be challenging to navigate. Plus, translating Heikin-Ashi signals incorrectly can make things even more difficult.
Trends are generally easier to manage, but consolidations can wipe outgains. To add to the challenge, Heikin-Ashi signals like candles, haDelta, and haOscillator might give conflicting information across different timeframes, causing confusion and often leading to losses.
So, what's one available approach?
Focus on just two timeframes and stay with the trend as long as both align.
Pay special attention to the higher timeframe and watch for the haClose level that could signal a trend reversal (using “1-bar predictive analysis”). And don’t forget to use a stop-loss that suits your strategy—though no stop-loss method is perfect.
Still have questions about Heikin-Ashi? Not convinced? We’re here to help—reach out to us anytime.
-
August 9 - Volatility Index (VIX) weekly – 20.37
Medium-term – Falling
Heikin-Ashi
(-) haDelta is stretched out.
(-) haOscilaltor is ready to make a top and turn lower.
(-) VIX is in an uptrend. To reverse it, haClose should be < 35.57 by the end of August 16 vs. 32.43 now. High probability to reverse the uptrend by next Friday.
Non Heikin-Ashi
(+) Above the stop/support @15.24
--
August 9 - SP-500 weekly – 5,344.16
Medium-term – Bullish in a downtrend.
Heikin-Ashi
(-) haDelta still in a downtrend.
(+) haOscillator is in oversold territory.
(!+) SP-500 is in a downtrend. To reverse it, haClose should be > 5,191.55 by the end of August 16 vs. 5,243.30 now. High odds to reverse. Follow haClose (5,191) during the week.
Non Heikin-Ashi
(-) The weekly Stop-loss is @5,274.38, 1.30 % below the close.
--
August 10: Bitcoin weekly– 61,019
Medium-term – Downtrend, lower lows, lower highs
Heikin-Ashi
(-) haOscillator topped.
(-) Negative haDelta.
(-) BTCUSD is in an downtrend. To reverse it, haClose should be > 57,217 by the end of next week vs. 57,878 now.
Non Heikin-Ashi
(-) Below thebuy-stop @72,406, 18.66 % lower. Resistance.
(++) The weekly chart shows an Inverse positive divergence for the haOscillator in 2024.
--
August 10 - Ethereum weekly – 2,640.5
Medium-term – Downtrend, lower lows, lower highs.
Heikin-Ashi
(-) haOscillator has topped.
(+!) ETHUSD is still in a downtrend. To reverse it, haClose should be > 2,391 by the end of the next week vs. 2,555 now. High odds to reverse.
Non Heikin-Ashi
(-) Below the trailing-stop @3,802.7
(++) Even on the weekly chart, haOscillator displays an inverse positive divergence since the start of 2024.
(!) Resistance @3,975, the upper band of the Donchian channel. Far from it.
--
August 9 - EUR/USD weekly – 1.0917
Medium-term – Bullish signs.
Heikin-Ashi
(+) haDelta is positive.
(-) EURUSD is in an uptrend. To reverse it, haClose should be < 1.0937 by the end of August 16 vs. 1.0932 now. Higher odds for the uptrend to continue.
Non Heikin-Ashi
(+) Above the trailing-stop @1,0533.
(+) Inverse positive divergence haOscillator for 2024.
--
