Custom Strategy : Heiken Ashi + RSI + Mama-Kama-Fama I want to share a custom strategy I have been developing on my very own and get your thoughts about it?
I have no friends trader, no mentor, no one I can share my thoughts with, that's why I present my strategies to find other traders interested in sharing and building - perfecting these with me. Together we are stronger.
If you find something to say about it, if you have skills to share (are you able to build trading bots?), please feel free to contact me with your ideas :)
I recently discovered the Mama-Fama-Kama indicator (via @rumpypumpydumpy Thank you so much for your work!) and it acts like a very powerful filter to the system IMO.
Talking about filters, the top-down approach stays the best of all and if you apply it correctly, it gives you in advance the direction of the trade you must look for and the zones you must pay attention to. Then, you simply/strictly follow your rules to catch a valid entry. After that you manage your trade manually or set another set of rules for exit.
I let you have a look. Do you see the rules of the strategy and how to apply? I will post all rules later ...
I don't have the time to continue now, but I will show you how I scalp using only 2 confluent timeframes and how you can literally spot the valid entries before/or at least right when they happen.
As it is commonly said, all indicators are lagging behind the price, my goal was always to find a way to get the opposite and build a system that would give a leading signal. I know some succeeded in this quest, so why not us too?!
Heiken-ashi
UPRO Long Swing TradeBUY signal for UPRO last Friday, with a nice dip intraday to provide a buying opportunity. Weak closed but finished with a BUY sign.
SELL on first red heiken ashi candle.
TP1 is about 3% or $89.68, where I'll take of 25% of the position if that is hit.
TP2 @ 5%/$91.42 (25% of position)
TP3 @ 7%/$93.16 (25% of position)
Strategy Statistics from backtest since UPRO conception (no take profits)
Win%: 56.7%
Avg Win: 4.79%
Avg Loss: 3.16%
R:R: 1.52
SOXL Long Swing TradeBUY signal for SOXL all day last Friday, with a nice dip intraday to provide a buying opportunity.
SELL on first red heiken ashi candle.
TP1 is about 6% or $720, where I'll take of 25% of the position if that is hit.
TP2 @ 8%/$733 (25% of position)
TP3 @10%/$747 (25% of position)
Strategy Statistics from backtest since SOXL conception (no take profits)
Win%: 56%
Avg Win: 7.3%
Avg Loss: 4.65%
R:R: 1.58
Implementing Heiken Ashi CandlesKEY POINTS:
Heikin-Ashi is a candlestick pattern technique that aims to reduce some of the market noise, creating a chart that highlights trend direction better than typical candlestick charts.
The downside to Heikin-Ashi is that some price data is lost with averaging, which could affect risk.
Long down candles with little upper shadow represent strong selling pressure. Long up candles with small or no lower shadows signal strong buying pressure.
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When paired with risk management tools, trading indicators can give you a clear insight into price movements. Heiken Ashi candlesticks resemble a typical Japanese candlestick, but several details differ from the traditional candlestick chart.
Every Heiken Ashi candlestick has an upper candlewick, a shadow (lower candlewick) and a body – much like the Japanese candlesticks.
However, a bar in the Heiken Ashi starts from the middle of the one before it and not where the previous one closed-a significant distinction.
Each candle has a high, low, open and close, and thus the Heiken Ashi formula has four segments.The opening level is the midpoint of the previous bar; the Close of each bar is the average of high, low, open and close.
If you’re aiming to catch persistent trends, then Heiken Ashi will be valuable.
NOTE:
However, day traders who need to exploit quick price moves may find Heikin-Ashi charts are not responsive enough to be useful. Also, due to no price gaps within Heikin-Ashi candlestick charts, risk management is harder to monitor. Using additional methods to watch risk is advised.
The formula for calculating Heikin-Ashi candlesticks is as follows:
Open= (Open of previous bar+ Close of previous bar)/2
Close = (Open + Close + High + Low)/4
High = the Maximum Price Reached
Low = Minimum Price Reached
*Hope this helped refresh your knowledge of Heikin-Ashi candlesticks or showed you a new trading strategy to use.
My simple Double Up strategy using Heiken Ashi candlesUSE the smoothed HA Candles indicator located in the indicator list. Combine that with the MACD and Bollinger Bands. Look for crossovers in the MAC D for Entry points on the 15 minute Time Frame. Riding momentum of the trend direction confirmed by the Heiken Ashi Trend color. For example if the HA candles are showing RED and price is beneath the 0.00 Line on the MAC D you are in a downtrend. using that knowledge wait for the blue MACD line to cross back up over the red line showing an uptrend move. COnfirm that move by seeing price action bounce off the bottom BOLLINGER bands band. once price in the HA CAndles turns green wait for the 2nd or 3rd HA candle to form. at that point price should be ABOVE the 0.00 line on the MACD signaling a strong move to the upside. somewhere in that location is your opportunity for an entry as well knowing it will be a strong move up. Using proper risk management set a SL at a resonable spot giving your TP no less than a 15 to 20 pip move. once that move has completed do the same in the opposite direction. DO NOT EXIT THE 1st MOVE UNTIL THE GREEN CANDLES SHOW AT LEAST 3 RED... always watching price action for major moves use the HA candles for further confirmation to either take TPs, add 2nd entries and ultimately exiting the trade... HAve fun and good luck
More room to run in TQQQBullish heiken ashi close for entry signal
I got about 2/3 of the position I wanted to and it continued to run after hours.
Sell signal is first red heiken ashi or we will sell 10% of position at 190.52(+4% gain). Additional take profits at +6%, +8%, +10% and +12% if we get there.
Tomorrow, if at any time we go below today's close (183.19) but stay in a bullish daily heiken ashi, I will add more.
TQQQ long swing trade entry off- heiken ashi strategyShortly after bouncing off the 21 day moving average, we got a buy signal.
Closing price was 164.74
1st Take Profit (10% of position @ 4%) = $171.33
2nd Take Profit (10% of position @ 8%) = $177.92
Exiting on 1st red heiken ashi or 9th green. No stop loss, chart shows 12.3%, this is max single trade drawdown of this strategy from 2010-2020, in order to show max risk.
Let's try again! Will Tech Join the Reopening Trade? ContinuedI am reposting my trade from November 24th that is still active.
So far we have hit our 12% price target twice, and we are awaiting the ninth bullish heiken ashi candle in a row on Monday, on which we will take 50% of the position off no matter what.
GBP/JPY bearish on the 15 minuteHere we see GBP/JPY price having some loss of momentum at a trendline resistance
R2R ratio 2.5
Comment down below your thoughts...
When Will The Creep Organization Run Out Of Pump?Monster sized gains since march this one has been on a massive run over 600% in gains!
Once this one shifts red I'm taking my shot at it.
Lots of bad rep in the media been going viral on all social media outlets.
🤔🤔🤔
Google trends popping off for wayfair currently.
GBPUSD SHORT - WEEKLY timeframe - modified Heiken Ashi strategyUsing a modified Heiken Ashi system whereby one enters long or short at the next bar based on the body of the previous completed bar, even if it is a doji. A more traditional HA strategy takes a directional position following a trending candle. This modified strategy is more aggressive and more mechanical meaning one does not perform a full analysis of the instrument in addition to following the strategy rules.
In this trade the body of last week's HA candle was red therefore we enter short at the open. Stop goes beyond the local high. This constitutes 1 risk unit. An approximate target is set at 2.5 risk units.
XAUUSD LONG - WEEKLY timeframe - modified Heiken Ashi strategyUsing a modified Heiken Ashi system whereby one enters long or short at the next bar based on the body of the previous completed bar, even if it is a doji. A more traditional HA strategy takes a directional position following a trending candle. This modified strategy is more aggressive and more mechanical meaning one does not perform a full analysis of the instrument in addition to following the strategy rules.
In this trade the body of last week's HA candle was green therefore we enter long at the open. Stop goes beyond the local low. This constitutes 1 risk unit. An approximate target is set at 2.5 risk units.
UKOIL LONG - WEEKLY timeframe - modified Heiken Ashi strategyUsing a modified Heiken Ashi system whereby one enters long or short at the next bar based on the body of the previous completed bar, even if it is a doji . A more traditional HA strategy takes a directional position following a trending candle. This modified strategy is more aggressive and more mechanical meaning one does not perform a full analysis of the instrument in addition to following the strategy rules.
In this trade the body of last week's HA candle was long therefore we enter long at the open. Stop goes beyond 3 bars lower. This constitutes 1 risk unit. An approximate target is set at 2.5 risk units.
FTSE100 SHORT - WEEKLY timeframe - modified Heiken Ashi strategyUsing a modified Heiken Ashi system whereby one enters long or short at the next bar based on the body of the previous completed bar, even if it is a doji. A more traditional HA strategy takes a directional position following a trending candle. This modified strategy is more aggressive and more mechanical meaning one does not perform a full analysis of the instrument in addition to following the strategy rules.
In this trade the body of last week's HA candle was red therefore we enter short at the open. Stop goes beyond the local high. This constitutes 1 risk unit. An approximate target is set at 2.5 risk units.
2 year Fibonacci Trend Analysis predicts Ethereum (ETH) to MOON!A two year Fibonacci trend based analysis indicates that Ethereum could surpass $1300 USD during the next crypto bull run. The trend started in December 14, 2018, swung high during June 15, 2019 and then retraced to the December 18, 2019 swing low. Since the Ethereum has rallied to the 61.8% fib ratecement and is finding support from the 7 day moving average and 38.2% retracement level. There is resistance from the 21 day moving average in addition to the 50% retracement level. If Ethereum can rally through these levels, 5 take profit targets should be noted. The first is at $396.81 and represents a 61.3% increase from current prices. The second is at the 1.618 fib extension or $570.05. The third represents the 2.618 fib extension at $850.37 or increases of 247%. The fourth take profit level is at $1130.72 and is the 3.618 fib extension. The final take profit point suggested by this analysis is at $1303.97 or an increase of 432%!
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Ethereum bounced off 61.8% Fibonacci retracement level vs USDEthereum bounced off the 61.8% Fibonacci retrace level against the dollar from its December 2018 swing low to June 2019 swing high back to December 2020 swing low on the daily vs the dollar. Heiken ashi has turned red and selling pressure looked like it was going to test the 38% Fibonacci level but bulls bought the price action back to 50% retrace and the daily RSI cooled off to 75 after being in the mid 90’s. Longs entering now should take profits $288.36, $335.83 and $396.74.