Better Heiken Ashi Smoothed Indicator
Heiken Ashi Smoothed Indicator For MT4 adds a moving average to further smoothen the Heiken Ashi and provides best buy and sell forex trading signals
Description
The Heiken Ashi Smoothed indicator for MT4 adds a value of moving average to provide much better forex trading signals than the classic Heiken Ashi indicator. As a result, this indicator helps trend traders using Heiken Ashi instead of regular candlestick for technical analysis.
The indicator is simple to use and well suited for new and advanced forex traders. Furthermore, the indicator works well in all intraday chart time frames and higher time frames. Additionally, traders can use this indicator for automated trading strategies.
Heiken Ashi Smoothed Indicator For MT4 Trading Signals
The indicator plots the Heiken Ashi candles on the price chart. Generally, the blue bullish candles appear below the price while the red bearish candles appear above the price. The trading strategy is to buy and sell according to the color change of the indicator.
If Heiken Ashi changes to blue candles, traders should consider entering a buy trade with a stop loss below the previous swing low. Furthermore, traders should ride the trend and book profit at an opposite trading signal.
Similarly, if the candles change to red traders should sell the currency pair. For best results, trader should confirm the trading signals with a higher time frame trend. In other terms, once traders identify a trade they should go to a lower time frame to identify the best entry point.
Forex traders prefer using the Heiken Ashi candles than the classic candlesticks due to the smoothness. However, by adding moving averages it further smoothens the candles.
Conclusion
The Heiken Ashi smoothed indicator for MT4 works much better during trending forex markets. However, due to the moving average calculation it may appear to lag than the classic Heiken Ashi.
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