Heiken-Ashi - The Money Machine. Part 2

Hello, my dear friend!

I am glad to see you again, and I hope you like the new indicator. As we said last time, when we considered the indicator and strategies with candlestick structures, today we will look at the strategy using the RSI indicator already known to us.

I would like to mention that the RSI indicator was taken at the standard settings, and the timeframe is 30 seconds. The essence of this strategy is that we can play on trends, filtering and confirming signals at the entrance using two indicators, as well as more accurately determine the continuation of the trend.

The strategy for raising is that:

• The turning point in the change of the RSI indicator from a decrease to an increase with the values ​​of the indicator below the border of 30 has happened.
• We saw Doji on the chart of the Heiken Ashi indicator or growth candles have already started to appear.

In this case, it is worthwhile to focus on the price increase and to play up, the signals are shown in Picture 4.

Picture 4. Signals to a deal “up” according to the Heiken Ashi + RSI strategy.

As it can be seen in Picture 4, the advantage of this strategy is that we can not wait for the RSI indicator to go above the line at 30. For us the change in its tendency is more important. It saves our trend time and reduces the risk that the short-term trend will end exactly when we put "up".

The strategy for the reduction is that:

• The turning point in the change in the RSI indicator from a rise to a decline has occurred with indicator values ​​above the 70 border;
• We saw Doji on the chart of the Heiken Ashi indicator or falling candles have already begun to appear.

In this case, you should focus on lowering the price and to play “down”. The signals are shown in Picture 5.

Picture 5. Signals to deal “down” on the strategy Heiken Ashi + RSI.

As we can see in Picture 5, the advantage of this strategy is that we don’t have to wait for the RSI indicator to go above the 70 line. For us the change in its tendency is more important. This circumstance saves time for us trends and reduces the risk that the short-term trend will end exactly when we put it “down”.

In general, the strategy allows to enter into short-term trends. We can do it without much risk on price correction, without overlooking the main and stronger directional movements and collecting money from the market.

In conclusion, I would like to claim that this indicator is unique from the entire list of possible indicators. It allows not so much to predict the tendency but mostly to save a trader from the unnecessary market noise and set up a clear work, which saves a lot of time and effort to a trader. It is also important to notice that this indicator is easy to combine with other indicators and makeup more interesting and complex strategies.

This indicator is perfectly combined with such indicators as:

• RSI
• ROC
• Stochastic
• Moving average
• MACD
• Bollinger bands