Heikin Ashi Archives - Trading Rush

(FREE) Trading Rush Choppy Market : https://www.patreon.com/posts/trading-rush-52806962

I made a Trading Indicator that disappears in the choppy markets, so you don’t have to lose money in them. We are also going to take more than 100 trades with this disappearing indicator to see if it actually increases the win rate of a trading strategy. First, we created the Beep Boop indicator in the AI trades video, and it was surprisingly good! Then we created the Trading Rush Moving Average that disappears in the range market, and now, introducing the Trading Rush Choppy Market, which disappears in the choppy market, and even shows the strength of the good market.

If you have watched chapter 14 in the Trading Rush Price Action Course, you probably remember the simple but effective technique that you can use to filter the choppy markets. The Trading Rush Choppy Market indicator improves that technique even further.

The TR Choppy Market has three main components. When the price movement is good, the Trading Rush Choppy Market will indicate it with light green bars. When the price movement is extremely good, the Trading Rush Choppy Market will indicate it with dark green bars. However, if the price movement is choppy, the green bars will simply disappear.

But then there is this line that looks like a moving average because it is and it is showing the average strength of the good price movement. For example, when the price movement is good, and multiple green bars are formed in the Trading Rush Choppy Market Indicator, the average line will move in the upward direction. But when the price is choppy and not worth trading, the green bars will not only disappear, but the average line will start falling towards the zero line.

The TR Choppy Market Indicator ranges from zero to a hundred, and the higher the average line is, the better the price movement is. As you can see here, when the price movement is good and not choppy, the average line is staying above 20. And when the price gets choppy, the average line falls towards the zero line, and stays below 20 for the most part.

This is the first version of the Trading Rush Choppy Market Indicator, and while testing I have found that 20 is the starting level that differentiates the good vs bad market, and the higher you go, the more choppy market you are going to filter. By default, the Trading Rush Choppy Market will come with a horizontal line that you can adjust. If you noticed that on a particular chart 50 is the level that differentiates the good vs bad market, you can simply move the horizontal line to 50, and with that, you will also adjust the size of the green bars.

But now, let’s put the Trading Rush Choppy Market Indicator to the real test, to see if it actually filters the choppy markets.

But, we need a trading strategy that gives many entry signals in a short amount of time, and a market that is choppy and trending, so we can see if the win rate increases with the Trading Rush Choppy Market indicator.

For the indicator, we simply come to the Trading Rush website, look at the TR Scores of many different strategies that we tested 100 Times, and then select the indicator that gave a bad win rate.

Let’s use the CCI indicator that only got a TR Score of 3.5 in the win rate category, and I found AUD JPY, which is trending and is choppy on the 5 mins timeframe.

To see if the win rate goes up with the Trading Rush Choppy Market, I took more than 400 trades in total with different settings.

When I took 100 trades with the CCI indicator without the TR Choppy Market filter, it got a 29 percent win rate with a 1.5 to 1 reward risk ratio. The win rate is so low because the CCI has a bad win rate in the first place, and on top of that, we are testing it in the choppy market. But when I tested it again with the Trading Rush Choppy Market filter, with the 20 level to differentiate clean vs choppy market, it increased the win rate by 3 percent on the same market structure. And with the 30 level, the win rate was 4 percent higher. And when the 40 level was used to differentiate good vs bad market, the win rate was 12 percent higher, but I ran out of data and was only able to take around 80 trades. Adding around 20 more trades shouldn’t make a big difference to the win rate, because others had pretty similar win rates at the 78th mark as they did at 100.

In other words, the win rate significantly improved with Trading Rush Choppy Market Indicator, and it got better with higher filtering levels.

If we compare charts side by side, you can see that on this chart, the price got choppy in an uptrend. The CCI indicator on its own gave 8 false entry signals. But with the Trading Rush Choppy Market filter, 6 out of 8 signals disappeared. Here, CCI on its own gave 8 signals in the choppy market, but with the TR Choppy Market filter, only 2 remained. On this chart, the CCI indicator gave 10 bad signals, but with the Trading Rush Choppy Market Indicator, 60 percent of the bad trades were filtered.

Does this mean the third Trading Rush indicator we created is successfully filtering the choppy and bad markets? According to the data, it definitely is, and you can try it yourself because it is absolutely FREE just like all the indicators we have created so far! I will share the source code in a public Patreon Post with the installation steps! LINK is in the description! Also, support Trading Rush on Patreon and get to see In-Depth Trade Analysis and Trade Opportunity Signals. Thanks for watching!

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Tag: Heikin Ashi

Heikin Ashi Trading Strategy – How to use Heikin Ashi Strategy or Heiken Ashi Indicator Strategies.

Can Hikin Ashi strategy make you a profitable trader? How to trade it and make more money? What Hikin Ashi Trading strategy is the right one? How to use this Hikin Ashi candle properly without blowing up our accounts? Lets find out.

Hikin Ashi is a very useful candle type that is very popular among new traders. It was made by Munehisa Homma in the 1700s, so it’s really old. Hikin Ashi means “average bar” in Japanese. You can tell by the name, that the Hikin Ashi averages price data, to create candles that appear smoother than the normal Candlesticks. Hikin Ashi candles filter out market noise. Less market noise will help you spot the trend and reversals easily.

On Trading View, this is what the Hikin Ashi candles look like. If we compare it with the normal candlesticks, we will see how smoother and cleaner the price action looks with the Hikin Ashi candles. Candles on the Normal Candlestick chart change direction frequently, but that’s not the case with Hikin-Ashi. That’s because Hikin Ashi averages price data. Hikin Ashi can be very useful for new traders to find the direction and strength of a trend.

And finding the Direction and strength of the trend is very easy with these candles.
If a Hikin Ashi candle has no lower shadow, it indicates a strong uptrend.
Furthermore, If a Hikin Ashi candle is green in color, it indicates an uptrend.
Size of the candles also matter. If the green candle is bigger in size relative to the other candles, it indicates a strong uptrend. And if the green candle is smaller in size, it indicates a weak uptrend.

And if a Hikin Ashi candle has no higher shadow, it indicates a strong downtrend.
Furthermore, If a Hikin Ashi candle is red in color, it indicates a downtrend.
Like I said, Size of the candles also matter. If the red candle is bigger in size, it indicates a strong downtrend. And if the red candle is smaller in size, it indicates a weak downtrend.
Sounds easy right?
What if the candle has shadows above and below at the same time? If a Hikin Ashi has shadows above and below at the same time, it indicates an indecision or range market.
After a series of green Hikin Ashi candles, if you see a candle that has shadows on both sides, it indicates an indecision.
Similarly, After a series of red Hikin Ashi candles, if you see a candle that has shadows on both sides, it indicates an indecision or range market.

Now there are different strategies around Hikin Ashi candles alone. The basic Hikin Ashi strategy, is to buy when the Hikin Ashi gives a strong uptrend indication after a series of red candles, and sell when it gives the strong sell indication after a series of green candles. Any trader with a little bit of experience can tell, that this kind of strategy alone can’t produce profit in the long run. If you buy and sell every entry signals, there is a high chance that you will blow up your account eventually. If you don’t buy and sell at every color change of the normal candlestick, why would you enter trades at every color change of the Hikin Ashi candles.

The best use of Hikin Ashi is at the support and resistance levels. You can also use it with indicators that you know work.

That’s all.

Now you know how to use the Hikin Ashi candles properly, and the reasons why most people use normal candlesticks.

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