Dnana
I am attaching the Smoothed Heikin Ashi Afl.
Please not this based on one of the Forex indicator by Don Stenitz. I have not thoroughly tested it.
The smoothed HA is traded in conjuction with the MTF indicator posted by chandrakant.
The basic rules are as follows
Entry Rules
Going Long
When the lowest TF (For example 15 min) bar turns from red to blue we are alert of an impending reversal. When the bar of the next higher time frame changes from red blue we get a confirmation of the trend change. This is the time to enter. If the still higher TF bar changes from red to blue we get the confirmation the current move is strong. If the highest TF bar also changes from red to blue we are in a strong move.
Exit
When the lowest time frame color change from blue to red we are alerted that that current move may end. Confirmation come in terms of the next higher TF bar also changes from blue to red. Then we exit the trade.
There is also a riskier approach. When all the four TF are blue (meaning the move is strong) and the reversal occurs we wait till three lower TFs to change color blue to red. Here the peak drawdown could be huge.
Going short and exits
The exact conditions mentioned above for long but the color change from blue to red.
Note:
Also note the HA bars themselves give many clues to the state of the move. long bars with long shadows indicate strength. Small bars with small shadows indicate weak moves.
regards
I am attaching the Smoothed Heikin Ashi Afl.
Please not this based on one of the Forex indicator by Don Stenitz. I have not thoroughly tested it.
The smoothed HA is traded in conjuction with the MTF indicator posted by chandrakant.
The basic rules are as follows
Entry Rules
Going Long
When the lowest TF (For example 15 min) bar turns from red to blue we are alert of an impending reversal. When the bar of the next higher time frame changes from red blue we get a confirmation of the trend change. This is the time to enter. If the still higher TF bar changes from red to blue we get the confirmation the current move is strong. If the highest TF bar also changes from red to blue we are in a strong move.
Exit
When the lowest time frame color change from blue to red we are alerted that that current move may end. Confirmation come in terms of the next higher TF bar also changes from blue to red. Then we exit the trade.
There is also a riskier approach. When all the four TF are blue (meaning the move is strong) and the reversal occurs we wait till three lower TFs to change color blue to red. Here the peak drawdown could be huge.
Going short and exits
The exact conditions mentioned above for long but the color change from blue to red.
Note:
Also note the HA bars themselves give many clues to the state of the move. long bars with long shadows indicate strength. Small bars with small shadows indicate weak moves.
regards
.. and for his detail expalnation [ enclosed chart ]
