A candle in a candle

Description of the strategy:

One of the interesting indicators, which reminds us of a filtered price chart is Heiken Ashi. Indeed this indicator filters the chart and removes impurities of small corrections that create extra noise leaving only a clear stream of a trend price.

Picture 1. An asset price chart and the Heiken Ashi indicator.

As we can see in picture 1, the arcs indicate trends that emerge on the chart. Also, you can see squares that show mini corrections that mislead traders.

Signals UP

The best time for opening positions "UP" is when you can see a small correction (you can see it in picture 1, marked with RED squares and GREEN arrows). Also, keep in mind that the trend should remain on the Heiken Ashi indicator, and candles should remain blue.

Signals DOWN

The best time for opening "DOWN" positions is when you can see a small correction (you can see it in picture 1, marked with GREEN squares and RED arrows). Also, keep in mind that the trend should remain on the Heiken Ashi indicator, and candles should remain red.

Usage

Such a strategy is a real gem among the "following the trend" strategies.

When a mini-correction emerges, it is generally really hard to guess if the trend continues to remain or not. To eliminate all doubts, you need to check the Heiken Ashi indicator. Finally, to achieve the best results, we recommend using the Martingale strategy while trading on corrections.