That is correct, you guessed it. Heineken Reed, a Japanese name meaning normal bar, is also known as Heineken Reed. Heineken Ashi is a variant of Heiken Ashi Oscillator. It includes bar charts as well as moving averages.
The advantage of Heiken Ashi’s histogram indicator for Metatrader 4 is that it is easy to read. The histogram consists of red and blue bars. Longer bars of the same color are more powerful and reliable than just two or three candles.
When the color of the indicator’s bars changes or the bars cross the moving averages, it will give you a trading signal. This indicates that the market trend will continue for some time. A moving average is a great tool for identifying range markets. It shows the change in the average.
This indicator uses historical data to assist traders in identifying market peculiarities. It shows price dynamics that are difficult to detect using price action. It helps you determine if the trend is strong enough to open a new position once you have identified the perfect trade entry point. It also helps traders to quickly identify strong trends.
This is the most interesting part. the Heiken Ashi Histogram indicator can be used as a universal indicator. It can be used in any currency pair and time frame. You can also use it for swing trading, day trading and scalping.
How to trade with the Ashi Histogram indicator
First, identify the colors in the bars of the bar chart. A lighter blue color indicates an uptrend, while a red bar indicates a downtrend. The color of the bars should not be used to determine whether you are entering a long or short position. Moving averages should be considered.
A few red bars do not necessarily mean that the price will go down, but blue bars do not indicate that the price will go up. You should wait until the bar crosses the moving average. If the blue bar rises above this line, it means that the uptrend will continue for a considerable period of time. This is also true for downtrends. Wait until the moving average crosses the red bar. The stronger the trend, the higher the bar rises after crossing the MA.
The Heiken Ashi indicator tells you when the trend is likely to gain momentum and become stronger. This indicator should be used in combination with other indicators and technical analysis tools.