Heiken Ashi Scalping Strategy

online forex trading
online forex trading

Heiken Ashi Scalping Strategy are some interesting features but that can soften the price movement, allow us to design a series of systems and strategies that can be implemented well in different time frames.

Then I explain one forex strategy multi timeframe very simple to apply to the main currency pairs.

                 Heiken Ashi Scalping Strategy Configuration:

  • Heiken Ashi Candles
  • RSI 14 periods
  • EMA 20 and 200 Periods

The Chart is as follows:

01

Open another chart and load the template, which will trade in the market is based on signals we have at a higher figure (slow) and market entry in a lower chart (fast)

In the EURUSD (or whatever they like) must have 2 charts and can be the following variants. (1 min and 5 min) (5 min and 1 hr), (15 min and 4 hrs) or (1 hour and daily chart)

Both Charts will be as follows:

02

Important details before Trading:

  1. The biggest time frames always give signals to buy or sell but do not take entries.
  2. Entries are made in a faster timeframe.
  3. The trading can be extended to larger chart.
  4. The 20-period EMA and 200 EMA periods have the same location and make convergence.
  5. RSI confirms the entry or sometimes can forward an input signal to the market.

The criteria are explained below can apply in the same way to any combination of “pairs” of charts, for example- 4hrs and 15min.

Buy Entry Rules:

  1. The signal is obtained at the slowest TimeFrame and for this example we see 1hr Chart, Heiken Ashi candle closes above the 20-period EMA
  2. 1 hr RSI confirms the buy signal
  3. Go to faster Chart (5 minutes) and is expected to confirm the entry price.
  4. The price is above the 200 EMA periods, this is good because 200 EMA is the 20-period EMA on the 1 hour chart (convergence).
  5. The entry is confirmed when RSI leaves on sale (if it is oversold) and returns to re-enter buy, this is also confirmed with breaks of resistance in this chart.
  6. As additional data may be crosses in the timeframe of 5 minutes to 20 periods EMA and 200 EMA in the direction of the signal of 1 hour, this will support your decision to buy.
  7. The StopLoss is placed in the minimum recent low.

03

With this Strategy can trade against trend but not in all cases.

Sell Entry Rules:

  1. The signal is obtained at the slowest TimeFrame and for this example we see 1hr Chart, Heiken Ashi candle closes below the 20-period EMA
  2. 1 hr RSI confirms the sell signal
  3. Go to faster Chart (5 minutes) and is expected to confirm the entry price.
  4. The price is below the 200 EMA periods, this is good because 200 EMA is the 20-period EMA on the 1 hour chart (convergence).
  5. The entry is confirmed when RSI leaves on buy (if it is overbought) and returns to re-enter sell, this is also confirmed with breaks of support in this chart.
  6. As additional data may be crosses in the timeframe of 5 minutes to 20 periods EMA and 200 EMA in the direction of the signal of 1 hour, this will support your decision to sell.
  7. The StopLoss is placed in the maximum recent high .

Some of the signs are not good for the market trading is therefore notice the following:

  1. Price closes above the 20 EMA, good sign because there is nothing to prevent the purchase.
  2. The price closes below the 20 EMA, good sign as the distance from the sign to the 200 period EMA is considerable for a good move.
  3. The 20 and 200 EMA are close together, this means a break in the price movement.
  4. Price closes with Heiken Ashi candle below the EMA 20 and has limitations that prevent the fall in the price.
  5. The closing of the candle Heiken Ashi is very close to the 200 ema resulting in a false signal.
  6. The price closed down again for a 2nd EMA periods, good sell signal.

It is advisable not to trade when the EMAs are close together, when a considerable gap exists, can trade within the EMAs.

Check the movements with RSI

04

Practice on demo, this Heiken Ashi Scalping Strategy can be implemented to swing trading and obtain a greater amount of pips, or you can Scalping.

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