Heikin Ashi Candle has been developed as a trending technical indicator for MetaTrader 4 users. This indicator makes it easier for novices to take advantage of the famous trending indicator “Heikin Ashi”.
In addition to foreign currencies, Heikin Ashi Candle generates accurate trends on commodity, stock and cryptocurrency charts. It is the ideal tool for analyzing market trends on MTF charts. Traders can use it on any time frame from 1-minute to daily charts on the MT4 platform. This means that you can use a trending indicator to focus on scalping as well as intraday trading at the same time.
In addition, the indicator provides real-time trends that allow you to evaluate possible buy-sell opportunities in major swing areas. It can help you identify swing trades and breakout potential, even in the case of range-bound swings. According to our review, it performs well as a stand-alone indicator, but it is also part of any trend-based Forex approach to help you upgrade your trading plan.
How do you identify buying opportunities using the trend signal of the Heikin candle?
Heikin Ashi candles can be displayed in different formats than regular price candles. In general, regular MT4 candlesticks do not rely on previous candlestick data when plotting new candlesticks. They are independent and only reflect changes in the current price action.
However, Heikin Ashi creates new candles based on the average closing and opening prices of the previous bar. It shows a series of changes in price action, allowing you to spot the reversal zone of the economic trend.
The green color of the candle, with an extended upper tail, indicates a bullish trend in the market. Conversely, on the ebb, the indicator will show an orange candle with an extended shadow at its lower end. The change in shape and color indicates the possibility of a reversal of the current trend.
This is where the Seagold signal helps you make decisions to buy or sell options in volatile market conditions. For example, if a positive seagold bar appears after a doji candle, this indicates an upward trend in price. In addition, using a red/green seagold candle to break through key resistance/support levels helps you identify the most important trading breakout opportunities.
Summing up
is a simple way to analyze trends and is very popular among thousands of traders worldwide. Its Heikin Ashi Candle makes it easier for novice traders to take advantage of this efficient trend identification indicator. It takes some time to master how this indicator performs in various situations in the market. When you are able to master this tool, you can use it to create your own trend trading strategies.
