Simply the Best Forex Heiken Ashi Trading Strategy

hello and welcome to video 2 of your training in this video, I want to cover setting up your charts we’re just going to set up the chart to show you the indicators we’re going to use and, then save those charts for easy access as we’re learning how to trade this system the indicators we’re going to use in this system I’m just going to give you an overview here and, then will actually show you how to set them up on Metatrader we’re going to use an exponential moving average a 14 period EMA in blue color is what I’m going to add to the charts and, then we’re going to use a custom indicator or at least it’s listed as custom in Metatrader the hike and ashy indicator and I’ll show you what that is in just one second and when you’re adding moving averages to your charts it’s quite simple to do in Metatrader they have the f+ button the FX + we’ll add indicators a trend indicators are right here on the chart and you would select moving average to add your moving average and I’m going to show you this again in just one second and the I can – e chart is under custom and, then hike annachi and we’re going to use the default settings that come with Metatrader, so I’m going to show you that let’s just go to setup these charts and save them, so you’ll have them throughout these training videos ok, so opening up Metatrader here all you need to do is get a chart on your screen it doesn’t matter which chart it is, if you don’t already have one you can just go to the market watch column on the left hand side right click on any Forex symbol and click chart window and, then just zoom in a bit, so you can see that the changes that we make here and the first thing we’re going to do is add a moving average, so we’re going to go up to the indicators button right up at the top here we’re going to click that little arrow down and we’re going to go to trend and moving average and in this case, I want to add the 14 period moving average, so, if it doesn’t say 14 here type it in we’re using an exponential moving average or EMA, so ensure that exponential is selected in the MA method and apply to close is fine make sure you choose a blue color or I’m going to choose a blue color you don’t have to and, then I like to make the lines big enough, so I can see them, so I always select the second line for the line size once you’ve done that just click OK and now we have a blue line on our chart that’s our I’m a 14 and the only other indicator we’re going to use in this system is the hiking Ashi indicator that’s under custom we click the FX button again or the indicator button again go to custom and, then scroll down until you see hiking Ashi and click it it’s going to open this little window it says custom indicator red and white is fine, so we’re going to just use red and white and just click OK and, then when we zoom in on this chart now here’s our hike and ashy bars and our EMA 14 our charts are all set up the last thing you’re going to want to do is save these charts what it isn’t difficult to do at all we just right click on the chart after we’ve added our indicators scroll down to template here and, then click on save template and, then just type in a template name you can call it whatever you want I’m going to call this trading system for like, so and now I have that template saved I can open up any other currency pair, so let’s just do that a US dollar Swiss franc I’m just going to open a chart window for that and I can just right click on this chart now go to template hold my mouse over that and, then go down to the name that I just named it trading system for, if you called it something else, then you would click that and I just click it and there we go there’s our charts on the screen here as well it saved our indicators that even saved the zoom level that we had set up, so now we’re ready to start trading with this system, so assuming that you followed the steps we just took in Metatrader itself you should have some new charts that look similar to this and make sure you save your chart this will allow you to get easy access to it as you go through the rest of these videos and as for you remember as I said just right click on the chart click save template and, then type in a file name and click save and, then all you have to do on any chart is right click and select your new template and it will apply your new charts to the chart that you’ve opened up and finally just to give you an overview of what we’re going to be doing over the next couple videos this system is a trend system by trading with the trends we increase our chances of winning on our trades, so system basically it gives us the right entry point allows us to trade with the trends and in this case we’re going to trade the daily charts in the training, so open up a daily chart apply your new chart to it and, then move on to the next video and we’re going to talk about short trades we’re going to give you the rules for short trades and some real examples as well hello and welcome to video 3 of your training in this video we’re going to cover short trades we’re going to give you the rules for short trades and we’re going to cover some real examples of how to make those trades on the Metatrader platform, so let’s just get started here with the rules when we’re looking at the charts the rules are for finding an entry point we need to look to find 2 red bars, so the high kanashii chart has the last two bars as red that is criteria 1, if we’ve established that that criteria is met, then we look for EMA or the EMA 14 to be pointing down and that’s our second criteria, so, if both of those criterias are met we, then look for the right entry point to enter a trade with this system we look at the first red bar we need the price to cross over the EMA and close below it, so the price has to close below the EMA 14 and, then we wait for the price on the second bar to break below the first bars low and, then that’s our entry point and I’m going to show you this both on the charts and in examples as we’re going through this, so, if it’s not clear yet don’t worry about it, so let’s just take a look at this again finding a trade on a chart here we need to look here are two red bars and looking at the EMA it is pointing downward, so our criteria is established we have two bars and the EMA is pointing down we need to now find our entry point and once again when we’re looking for the entry point we look to see that the first bar has crossed below the EMA 14 and the price has closed below it and that has happened in this case and, then once that has happened we need to look at the second bar and once the price of the second bar falls below the low point of that first bar that’s our entry point, so in this case that red line drawn right there would be the end, so we entered the trade and once we’re in the trade we need to manage it properly in this case it’s quite simple we set a stop loss of 100 pips and I’m using daily charts in the examples for this system in video 5 I’m going to talk about other timeframes, if you use the four hour or one hour charts don’t use 100 pip stop this is solely for the daily charts that we’re going to be trading in the examples here and to exit the trade we can either set a take profit at two times the stop, so, if we’re using a 100 pip stop we would set a 200 pip take profit or we can move the stop loss to the break-even point once the trade is 200 pips profitable and, then trail the stop at 200 pips, so that’s an alternative exit strategy and the examples I’m going to use the 2 times rule this is the simplest rule especially when you’re first getting started your profit is always 2 times what you risk and it’s a good way to get started you don’t have to worry about gaining less, because you trailed your stop and it turned around on you, but as you gain more experience you might want to use this alternative exit strategy as well trailing a stop isn’t a difficult way to exit a trade at all, so let’s just take a look at an example on the presentation here and, then we’re going to show you some examples on the Metatrader charts themselves, so looking here we have a screenshot of a chart we look to see that our criteria has been met we have two consecutive red bars and the EMA 14 is pointing downwards and it is sloped downwards in this case it just has a slight slope at this point, but it’s still sloped downwards, so that criteria has been met we, then look for our entry point the first red bar has closed below the EMA 14, so the price point looking at the Green Line on the right hand side of the bar is below the EMA 14 our price has closed below it and, then we wait for the price to break below the low of the first bar and at that point we enter the trade entering the trade and managing the trade in this case is quite simple, so just looking at the trade on a chart here we entered it when it broke below the low of the first bar we entered at one point four three nine seven we set a 100 pips stop loss, so our stop loss was one point four nine seven and we sat a two hundred pip take profit which is one point four one nine seven and in this case the trade moved in our favor we made two hundred pips profit in about five days time on this particular chart, so a nice profitable trade didn’t last too long and we profited quickly from it let’s take a look at some examples on the Metatrader charts and, then we can show you how to set this up and show you with real data how this works okay, so looking at our first trade example here I’m looking at the euro US dollar daily chart and we have looking at the chart we have a nice long downtrend and just to take a look we need to first look for our criteria that were we can enter a trade or that we can look for an entry point we need to read bars which has okay curd here and we need the EMA 14 to be sloped downward and in this case it is it’s got a downward slope to it, so we’re assuming that we are going to downtrend and we can look for an entry point, so looking for our entry point we can look here that the price on the first bar has closed below the EMA 14 and that is shown with the green line and, then we will look for our entry point on the next bar we wait for the price to drop below the low point of the first bar and that would be our entry point, so just to show you that here our entry point on this trade would have been about one point five seven five one as we enter that trade we’re going to set a stop loss one hundred pips above that, so that would be one point five eight five one or about this point here fairly close to that and we’re going to set a take profit level two hundred pips ahead, so that would be one point five seven or sorry five one about this point here, so we set our stop loss we set our take profit we do that all in as we enter the trade, and, if you do it that way your trade is going to automatically it’ll either go in your favour and you’ll take profit and in this case that’s what happened it happened about a week later it hit the 200 profit level or sometimes the trade might go against you and you would hit a stop out at 100 pips behind in most cases it with a trend system like this and trading the daily charts the trends are going to be well-established and you won’t stop out very often with this type of system the other alternative exit strategy that we could have used we could have waited for our price point to move to 200 pips ahead, so instead of setting a take profit we just wait, so we’re 200 pips profitable and at that point we would move our stop loss to the break-even point and use a trailing stop of 200 pips and in this case that would have been quite a profitable way to do it you probably wouldn’t have stopped out down till this point, so you could have stayed in the trade for an extra week and a half, but you would have made four or five hundred pips more in profit, so that’s an alternative exit strategy it’s not always the best exit strategy to use and I’ll find a trade example to show you why let’s look at one more trade example, so you clearly understand how to find the signals and use this system okay looking at another example here I’m looking at the British Pound US dollar on the daily chart again and first we’re looking for a short trade, so we need to establish that our short trade criteria is met we need to see that there is two red bars and in this case there is and at that point we need to see that the EMA is sloped downwards, so just taking a look here we’ve got two red bars the EMA 14 is sloped downwards, so our criteria to find an entry point is met we now look for our entry point we look at the first red bar and the price dropped through and closed below the EMA 14 and it did and at that point we, then wait for the second bar and we need the price to fall below the low point of this bar and that’s going to be our entry points, so just putting that on the chart we would have entered this trade right about here and when we entered that trade we would have used a stop loss our price point here our entry point is one point five nine seven two, so we would have used a stop boss 100 pips behind that of about one point six oh seven to about that point there and, then we would have set a take profit level two hundred pips ahead to one point five seven two, so that would be at about this point here not quite exact, but pretty close, so in this case we enter the trade the trade moves in our favor at one point it almost goes against us and stops out, but it didn’t happen it stayed still 30 or 40 pips away from that line it moves in our favor and in about four days time we hit our take profit level and we move exit with two hundred pips profit alternatively the other exit strategy that we could use is to trail our stop in that case we would wait for the trade to move 200 pips in our favor and we would move our stop loss to the break-even point and, then just trail to stop 200 pips behind as I said that’s not always the best exit strategy to use sometimes it’s going to help you profit more, but sometimes you’ll get the case where it moves past the 200 pip point drags your stop down just a little bit and, then turns around on you and, then you end up making less on the trade which exit strategy you use is up to you my suggestion is you use the take profit level as you’re learning the system and, then move on to a trailing stop style of exit point as you learn more about the system and get more comfortable with it now that you know the criteria for short trades and you’ve watched some real examples of short trades move on to video 4 to watch the long trade rules and examples and, then start practicing making these types of trades on with historical data on meta trader, because we’re trading the daily charts with this system using live data might take a while to practice that way, but it’s easy enough to just simply look at the charts find your entry points and practice finding the right entry points for both long and short trades right on the charts, so move on to video 4 watch the long trade videos and, then start to do some practice hello and welcome to video 4 of your training in this video we’re going to cover long trades we’re going to give you some real examples of long trades and cover the, so that you clearly understand how to make a buy trade with this particular trading system, so let’s just start with the rules here largely these are the same as they were for short trades the difference is of course that they’re reversed, so in this case we’re looking for two criteria again, but instead of looking for red bars we’re going to look for two white bars, so we need the last two bars on the chart to be white and that’s the criteria one that we need to meet and, then once we’ve found those we need to ensure that the EMA is pointing upwards when the EMA is pointing up we assume we’re in an uptrend and this is our second criteria at that point we need to look for an entry point our entry point comes when the first bar price crosses above the EMA and closes above it and, then at that point we wait for the second bar to break through the first bars high point and that will be our entry point, so just taking a look on a chart here finding a trade we need to establish that we have two white bars, so we’ve got two bars that are white on this chart right after the red bar here we need to establish that the EMA 14 is pointing upwards and in this case it is the EMA is pointing upwards it’s actually just turned from flat to up, but it had a slight upslope before and, then we need to look for our entry point and again as we’re entering this trade we first look that the first bar crossed over the EMA and closed above it and looking at this bar here the price point did close above the EMA and, then we wait for the second bar to break through the high point of the first bar which it did and that becomes our entry point at that point we enter the trade and, then once we’re in the trade this Cerreta themselves are fairly automated we set a stop loss at 100 pips and again this is for the daily charts when we get to video 5 I’ll talk about some shorter timeframes, but don’t use 100 pip stops on a 4 hour or 1 hour chart, if you decide to trade those and we can exit the trade in one of two ways we can either set a take profit to two times the stop, so, if we were trading the daily charts we would set it to 200 pips or we can move the stop loss to the break-even point once we are 200 pips profitable and trail the stop at 200 pips when you’re starting out again the two times the stop method or reasoning a method of reasoning is the simplest way to do it as you gain more experience you might want to trail your stop it can help you gain more profits, so let’s just take a look at a trade example in the presentation and, then I’ll show you a couple of long trade examples on the charts themselves, so we need to look that the two criteria have been met we need to first find two white bars and looking here we’ve got our criteria we’ve got two white bars the EMA must be pointing upwards and in this case it is and, then we look for our entry point the first bar has crossed over the EMA and the price has closed above it and, then we wait for the price to break through the high point of that first bar with the second bar which happened here and at that point we enter the trade once we’re in the trade we set a stop loss to 100 pips and we set a take profit to 200 pips, so looking at this particular trade on the charts we would have entered at this point here at one point four zero one five we would have set our stop loss to one point three nine one five and we would have set a take profit to one point four to one five and in this case are the trade moved in our favor it took about seven days time for us to hit the take profit level, but it did take hit the take profit level and the trade was profitable let’s take a look at a couple of examples in Metatrader and, then you’ll have a better overview of how to make a buy trade using this system okay, so looking at example trade here we’re looking at the US dollar Japanese yen on a daily chart and our first criteria that we need to look for when we’re making a buy trade or a long trade is that we have two white bars and we do right here I’m looking at this bar and that bar we have two white bars and, then we also need to establish that the EMA 14 is pointing upwards and of course in this case it is and at that point we look for our entry point we look to see that the one first bar we were looking at has crossed through the EMA 14 and has closed above it and in this case it did and, then we wait for the second bar to break through the high point of the first bar and that becomes our entry point, so in this case on this trade our entry point would have been ninety point three seven and when we enter that trade we set a stop loss 100 pips back, so our stop loss in this case would have been eighty nine point three seven and we set a take profit two hundred pips ahead at ninety two point three seven in this case the trade moved in our favor right away and it took about ten days, but we did hit our take profit level here the alternative exit strategy would could have used would be to wait until we were two hundred pips profitable in the trade and, then move our stop loss to the break-even point and, then trailed that stopped at two hundred pips in this case since we hit our take profit level here and, then a few days later it reversed we probably would have stopped out at this point and we wouldn’t have made as much on this trade, but as you learn more about the system the alternative exit strategy can help you earn more profits in this trade itself is an excellent profit in just about seven days for this trade I guess and looking at another example I’m looking at the u.s. dollar daily chart again euro US dollar daily chart and we need to look for our criteria to find a long trade opportunity, so we need to look for two white bars which we have here and we need to establish that we are in an uptrend with the second criteria that the EMA 14 is in fact pointing up and again that’s right here it is pointing up, so at that point we just need to find our entry point we look at the first white bar to establish that it has crossed through the EMA 14 and has closed above it and in this case it has and, then on the second bar we wait for the price point to break above the first bars high point and that becomes our entry point, so on this trade our entry point would have been one point four three three five we would have went long on the trade at that point and we would have set our stop-loss one hundred pips behind to one point four two three five and we would have set a take profit two hundred pips ahead two times our initial stop, so our take profit level would have been one point four five five five and in this case the trade moved in our favor and in two days time actually we hit our take profit level this would have been one of those cases where you would have actually made more, if you trailed your stop as an alternative exit strategy as you hit this 200 pip profit level you could have moved your stop to the break-even point and, then trailed the stop at 200 pips behind and in this case you would have stayed in this trade for about seven or eight days more and almost doubled the profit that you made on it, but again when you’re starting out the easiest exit best strategy to use is simply to set a take profit level that is two times the level of your stop, so there’s another excellent trade example and in this one case we profited 200 pips in just 2 days ok now that you understand how to use this system with both short trades and long trades we’ve given you the rules for both buy and sell trades and we’ve walked through some examples of both you should move on to video 5 we’re going to talk about time frames currency pairs and money management for this system or some more advanced ideas such as money management and, then you should also work on practicing both short trades and long trades with this system doing, so will help you get a better feel for it and ensure that you make the right trading decisions when you’re using this system for now move on to video 5 and finish your training videos with time frames currency pairs and money management.

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