iHeikenAshiSm Indicator For MT5

iHeikenAshiSm Indicator For MT5

Table Of Contents:

  1. iHeikenAshiSm Indicator For MT5
  2. Trading ideas with the iHeikenAshiSm Indicator For MT5
  3. iHeikenAshiSm Indicator For MT5 - Buy Entries
  4. iHeikenAshiSm Indicator For MT5 - Sell Entries
  5. iHeikenAshiSm Indicator For MT5 - Conclusion

The iHeikenAshiSm Indicator For MT5 is a smoothed version of the heiken ashi. It draws the values directly on the price chart. You can plot Heiken Ashi bars and standard price bars.

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The iHeikenAshiSm Indicator For MT5 is famous for the use of a smooth algorithm. Generally speaking, indicators that work on the principle of the smoothing algorithm tends to do well most of the time. It provides much more accurate data to the retail traders which pave an easy path to integrate the tool with any kind of trading method.

People who will use the iHeiken AshiSm indicator won’t have any trouble with the synchronizations. But a powerful indicator often fails to aid the investors as they don’t spend enough time to its perfect use. It very normal to get biased with the initial settings as the candles are marked with the sky and red color.

The sky color marked candles shows the bullish rally and the red marked candles is representing the bearish rally. It’s more like a filter tool that clears the noise in the candles. Carefully observe the candle without the iHeiken AshiSm, you should see some big spikes.

But when you load the indicator to the chart, all the spikes will be covered with the iHeiken AshiSm bar which will provide you a clear signal.

Trading ideas with the iHeikenAshiSm Indicator For MT5

When we speak about trading ideas, we have to find a valid strategy. Remember, no indicator can work as a standalone strategy. You must rely on other tools like support and resistance to take the data from the indicators. As this tool will be acting as a filter tool, it’s better to avoid M5 and M1 chart.

Does that mean, the scalpers will not be able to depend on this strategy? If the scalping system is based on the M1 or M5 chart, the iHeiken AshiSm is useless. The minimum time frame to use this chart starts from the 15-minute chart. Now let’s analyze long and short entry with the help of this indicator.

This should give you an in-depth idea of how the indicator can be used with an existing strategy. As you move on to the use of this strategy, make sure you test the new indicator functions in the practice account before going into the live market.

iHeikenAshiSm Indicator For MT5 - Buy Entries

The long trade setup can be taken in a different format. To learn master the use of this iHeiken AshiSm indicator, we will use the most prominent method. Those who are guessing a trend trading method will be applied is correct.

Look for the price to break an important high. Breaking the high shows the establishment of the bullish trend. Prior to the break of the resistance, we need a minimum of 4 bullish candles or sky blue candles marked by the iHeiken AshiSm indicator. After a successful break, we have to see the momentum.

If the break is associated with a strong rally, it is better to wait for one bearish candle. Most of the time the bearish candle will bounce off from the support level. Open the long trade with an SL below the support level. The take profit can be evaluated by analyzing the resistance or the risk to reward ratio.

To be honest, it slightly depends on the trading strategy. The iHeiken AshiSm will basically work as the fitter and the confirmation tool for the strong rally to the north.

iHeikenAshiSm Indicator For MT5 - Sell Entries

Everyone fears to trade the top. But opening trades at the reversal point is not that tough as you have learned. If the reversal trading strategy is well balanced and has a win rate of over 69%, you can increase the win rate by 15-20% just by applying the iHeiken AshiSm filter.

However, the strategy must be strong enough to spot the break of the trend line. In case, the trend changes with the formation of a reversal chart pattern, you need to go to the higher time frame. The trend line strategy is applicable for the M15 and M30 chart but when the chart pattern strategy comes into the scene, the minimum time frame for using the indicator is H1.

Upon the break of the support, we need a three candle with a bearish closing. The indicator will label the candle with a red color. Open the short trade at the fourth candle. Note that the opening price of the fourth candle should match the significant price level. Since the candle will be marked with red color, the red zone of the candle should match with the key level that recently turned into strong resistance.

Open your short trade without giving a second thought and you should feel comfortable with the trade setup.

Those who are new to the reversal trading technique must be careful with the risk factors. The use of iHeiken AshiSm should not encourage you to trade with higher risk.

Higher risk always creates unnecessary stress on the investors and many retail traders start breaking the rules when they face such trouble. The maximum risk is 1% when you go against the trend or try to ride a new trend.

iHeikenAshiSm Indicator For MT5 - Conclusion

Knowing the function of any indicator is a very tough task. Things are particularly hard for the iHeiken AshiSm user as the visibility of the candle is offset by the colored markings. But these colored markings are done intentionally so that you don’t get biased with the spikes or the false movement in price.

But those who rely on price action strategy will get into trouble with this indicator. In that case, they have to analyze the same chart twice. First of all, they have to find the bullish signal with the help of the PA strategy. After that, they have to activate the iHeiken AshiSm so that they can evaluate the quality of the signal.

If the indicator tells the setup is great, you are reinforcing the trading idea just like a pro trader. After knowing all these steps, if you still find it hard to use, you can stick to the demo platform for a few weeks and get habituated with this amazing tool.


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