SWING TRADING With HEIKEN ASHI Candlesticks (Heiken Ashi Trading Strategy) 🔥🔥
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SWING TRADING With HEIKEN ASHI Candlesticks (Heiken Ashi Trading Strategy) 🔥🔥


– [Trade With Trend – Heiken Ashi Trading Strategy]
Welcome to the video on how to use Heiken-Ashi
candlesticks in swing trading. In this Heiken-Ashi
trading strategy, we look into coil spring
pattern in detail. This trading strategy
that we will discuss is highly effective and
has good rate of success and hence do pay attention. I will be taking up
long and short setup along with time frame selection
and instrument selection. What I am going to explain
here is very simple and this is something you
can start implementing from Monday morning,
so let’s get started. So let me first list
out the tools required for this trading strategy. In this Heiken-Ashi
trading strategy, you need Heiken-Ashi
candlesticks and standard volume
indicator only. Apart from these there
is no other indicator that you require. There is no need for
any special software, as these charts can
be accessed for free. To access these charts just
head over to Investing.com or TradingView.com and you
can then access these charts. Do check with your
broker as well as such standard charts
are now available with your broker’s technical
analysis platform as well. If you are using software’s
like Ninjatrader, Metastock and Amibroker, then
getting Heiken-Ashi charts is fairly easy. Most of the technical
analysis softwares have this charting
method by default. So let us first understand
this swing trading pattern. I had first seen this pattern in one of Steve
Nison’s teachings on
candlestick trading. When I researched
on this, I realized that it worked really
well with both standard and Heiken-Ashi candlesticks. The coil trading pattern
is part of 3 swing moves where each swing leg
exhibits loss of momentum. This is an important
point to note and let me explain
this in detail. If you look at the
chart in front of you, I have marked the
coil trading pattern from point A to point F. Swing from A to B is greater
than that from C to D. And from C to D the
swing that you see is greater than what
you see from E to F. It is very clear from the
chart that price is coiling up in a range before it snaps
out of it and moves higher. Now, whenever price
moves above the range it then enters what we
call the spring phase. Its important to note
that this trading pattern does not form that often and
hence you won’t have to choose between many stocks
that you trade. If you track 10 to 15 stocks
then based on this method you would get roughly 20
to 25 trades per year. This is one of the
positive points of this swing trading strategy as it prevents you from over
trading in your own account. Now in this chart you see the
coil spring trading pattern. In this region, you can
first see the coil pattern where price
contracts in a range. Post this, you get
the spring phase where price breaks
out of the range and then heads
higher with momentum. In an ideal coil spring
swing trading pattern, price will spend at least one
month in the coiling phase before attempting
to move higher. Ideal phase for price
contracting in a range is generally between
one to three months. This is the range that I found which delivers optimum
risk reward ratio. While the price is
contracting in a range points B, D and F
should be approximately at the same level as
marked in the chart. But with each swing
wave that you see it is important for
momentum to fall. This specifically applies
to swing wave E to F. Now there are some other
specific rules and filters we need to apply and we will
see this in later slides. Let us now look at the role
of Heiken-Ashi candlesticks in this trading pattern. This swing trading strategy
was originally shown with standard
candlestick charts. With standard
candlestick charts though trend and counter trend
can confuse at times as impact of one single candle, can lead one to believe
trend reversal in market. With Heiken-Ashi
candlesticks though it is much easier
to identify trend and counter trend candles and its overall impact
in price analysis. If you prefer using
standard candlesticks, you can still
continue using those. But simultaneously
I would recommend that you should be
using Heiken-Ashi
candlesticks as well. Now in this Heiken-Ashi strategy we will be using Heiken-Ashi
to assess momentum within the trend and
directional bias. We will also be using
these to determine who remains in control;
that is, buyers or sellers. This is something
we will be learning throughout this trading strategy in the form of many examples. Let us now look at
couple of variations of coil spring trading pattern. In an ideal pattern,
points B,D and F are approximately at
the same price level. In a variation though it
is possible for point F to be above the
region of B and D. Now, this is totally
fine and this variation is the one that has
high odds of success. With point F not retracing
as deep as point B and D, it just reflects the underlying
strength within price. If you spot this
variation on the chart, do prefer it over
other variations. of this swing trading pattern. Now I just recommend
one thing here, that you should always
focus on analyzing how traders might think with respect to the
chart in front of you. By doing this, you
would have a fair idea of consensus in the market. In this chart, with B, D
and F at different levels, you get a rising triangle
formation as well which in itself is a
bullish trading pattern. In this pattern, Sellers are
unable to drive price lower on each down leg,
as buyers step in and then drive price higher. So as you are analyzing charts you need to spot various
patterns within those charts to help you understand
whether the overall structure is bullish or bearish. Now this is one thing that
you should be practicing each and every day with
whichever trading strategy you are trying to execute. Let us look at
one more variation of this swing trading pattern. In this variation, points B,
D and F are in the same range but points A, C and E are
not in same price range. Such variations if you see
will happen quite often and the important thing for you is to focus on the psychological
make up of the chart. This means at all times
you have to determine what is the path
of least resistance and in which direction price
is more likely to break out. You will also see variations where point A is too
high from C and E. In those instances
you will have to use trend line between C and E to identify entry
point in this pattern. Now this is something we will
look into in later slides. While researching
on this method, if you find some
other variations, then you can validate
the same by asking me in the comment section below. Because whenever
you will spend time researching this
pattern I can assure you that you will find at least
10 to 15 different variations playing out on a
consistent basis. Let us now understand why this
swing trading pattern works. If you look at the swing
move from point A to B, momentum is clearly visible. Most of the Heiken-Ashi
candlesticks represent strong trend on the down side. At this instance, most traders
would be short in this stock. From here on, the swing
move from B to C happens on strong momentum as well. This comes on back of wide
range Heiken-Ashi candlesticks and this is where traders
would prefer going long. That is, those who are short would actually reverse
their positions and go long in the market. Move from C to D again happens
with fair degree of momentum and this is where traders
move out of this stock after the series of
whipsaws that they face. Once traders begin to lose
interest in the stock, price then moves above
the A, C and E trend line and then heads
higher with momentum. After the breakout,
those who were initially long in the range
again enter the stock with a fear of missing
out on the current move. This eventually takes price
even higher with momentum. The main driving force
behind this pattern is whipsaws within the range, and then the feeling
of missing out on a good trading opportunity. In this trading strategy, it is important to focus
on Heiken-Ashi candlesticks within swing moves
between various points. Do remember that in
this trading strategy we are looking for momentum
exhaustion with each swing leg and hence this is something
we need to measure on a consistent basis. If you look at the swing
move from point A to point B there are eight Heiken-Ashi
candles that are wide in range. This represents strong
down trend in the market. From point C to point D there are seven wide
Heiken-Ashi candlesticks which again represent
momentum on the downside. But when you look
at move from E to F, there are only four wide
Heiken-Ashi candles. The move from E to F
is also the shortest when you compare it
with A to B and C to D. What this clearly signifies
is that, as price moved lower momentum reduced
on the down side. This represents inability
on part of sellers to drive price lower. In all the charts
that you analyze irrespective of the
timeframe you select this pattern of
momentum exhaustion towards the end
should be visible. While assessing the
strength of pattern you need to make sure that range
of Heiken-Ashi candlesticks reduce in E to F swing leg. This is an important rule and
this should be kept in mind. Along with this, you need
to see how volume shapes up in each swing leg. In this instance, in the
first swing leg from A to B, there should be pick up in
volume as price moves lower. This is marked on the chart
in this particular region. Followed by this,
volume can either fall or be flat as price
moves from C to D. There should be some
increase in volume as price moves from B
to C and from D to E. In the last swing
move from E to F, there should be
notable drop in volume. This would suggest
price is moving lower with less conviction
and this in turn strengthens the coil
spring pattern further. As price moves above the
resistance line of A, C and E, there should be notable
pick up in volume as marked here on the chart. This is what represents
momentum returning on back of high
volume on the upside. This is a crucial rule and
this should not be skipped while trading this strategy.. Let us now come to
time frame selection. Do remember that we
are swing trading here and therefore our time frame
should be selected accordingly. What I’ve found is
that 30-minute and
60-minute time frame works really well with
this trading strategy. Most of the trades
that I execute are based on 60-minute
time frame charts. Make sure that you
experiment with time frame once you understand
this concept fully Do remember that your
time frame preference can clearly differ
from what I prefer. I will also recommend
for you to first start on a 60-minute time
frame and then move to 30-minute time frame
or any other time frame. This is an approach
I would suggest in case you are a beginner. If you’re someone who
wants to hold a trade for just two to three days, then you can try trading on
15-minute time frame as well. Underlying concept
of this strategy remains the same across
any time frame you select. Let us now look at long
trade setup in detail. Entry in this trading strategy
is taken at time of breakout above the A, C and
E resistance line. Entry can be either taken
straightway after the break out or it can be taken post the
wide range Heiken-Ashi candles that form in this region. Now, this is very similar
to what we discussed in the Heiken-Ashi
candlesticks series. In case you have
missed those videos, link to those would come up at
top right end of your screen. In this particular chart wide
range Heiken-Ashi candles showed up in this
particular region and this should be
the entry point. Stop loss for this trade depends
on risk appetite of trader. But when it comes to me
I prefer keeping a stop at point D for any long trade
that I take in this region. Now, if you are a
conservative trader then you can place a stop
in this region at point F. Exit in this
Heiken-Ashi strategy depends on the underlying
momentum in the market. To anticipate the
probable exit region, take the distance
between A and B and then add it to
the entry level here. In this chart, breakout
happened at 5550 at this region and the
distance between A and B is 350 points. Therefore the
probable exit region would be at 5550 plus 350 points, that is roughly about 5,900. You can also keep a
fixed exit at 10 to 15% in case you spot a
momentum oriented market. I hope this particular
aspect is clear. Let us now look at the short
setup for this trading pattern. Now short setup is very
similar to long setup with the main difference
being that short setup is very rare and
should only be traded in a confirmed down trend. If you look at short
and long setup, both clearly
represent distribution and accumulation in the market. Even if you don’t take swing
trades based on this setup you can clearly use
this to understand the overall market structure
over next few sessions. Entry in this short setup can
be either taken straightway or it can be taken post wide
range Heiken-Ashi candles after the break down of
A, C, and E support line. I usually use the
Wide range candles to increase my positions once I have taken
the initial entry after the breakout
or break down. Exit in this
Heiken-Ashi strategy also depends on the
underlying momentum. Do remember that you
are short selling here, and hence be ready to book out if you spot excessive
momentum in the short term. To anticipate the
probable exit region, take the distance
betweem A and B and add it to the entry
level at this point. In this chart, breakout
happened at 8300 and the distance between A
and B is roughly 300 points and therefore if I have
taken a short trade here I would place my
exit at 8,000 level. During short setups
when momentum is strong you will typically get two
to three times of distance between A and B. And during long setups
when trend is strong and momentum is
favorable this can extend to three to four
times of the distance between A and point B. In this swing trading strategy, you need to use three broad
guidelines during each phase. In swing move from
A to B and C to D, wide range Heiken-Ashi
candlesticks should be present. Volumes should also
expand in this region. When it comes to E to F make sure candles are
not wide in range. Volumes during this phase
should be on the lower side. When price breaks out of the
A, C and E resistance line, make sure volume expands
along with Wide range candles. This is where Heiken-Ashi
candlesticks are so useful as trending structure
is easily identifiable. These three guidelines
that I’ve shown here should be followed
at all the times. One other guideline to follow is to check for sign of
strength from B to C and D to E. This is optional
but if you can spot wide range candles
in these two phases, then this would
definitely be positive. In order to proceed with
this trading strategy make sure you stick
to one-time frame for the next 20 trades. Take notes of your trades and
do not risk more than 0.5% of your account size
per trade that you take. One important aspect
you have to keep in mind is that this swing trading
pattern fails as well. But if you follow the steps of analyzing strength of
Heiken-Ashi candlesticks along with Volume conditions
then more often than not you will be on the
right side of trend. When it comes to
stock selection, stick with stocks that are
highly liquid in the market. This is important else volume
conditions will get distorted. I would definitely recommend for you to track stocks
in derivatives segments as most of these stocks are
highly liquid by nature. If there is any doubt related
to Heiken-Ashi candlesticks or this pattern that
we have discussed then let me know in the
comment section below. So kindly consider
hitting the like button and sharing this video
if you find it useful. Thanks a lot for
watching this video guys, take care and be safe.

About Ralph Robinson

Read All Posts By Ralph Robinson

71 thoughts on “SWING TRADING With HEIKEN ASHI Candlesticks (Heiken Ashi Trading Strategy) 🔥🔥

  1. Link to All Heiken Ashi Candlesticks Videos Is given here. https://www.youtube.com/playlist?list=PL9myHLrE5hrMuLzItIBgtsjAxDUdkcZoj

    Subscribe To Our Channel https://www.youtube.com/c/TradeWithTrend?sub_confirmation=1

    Telegram Broadcast Group https://t.me/TradingWithTrend

    Check Out all other videos at https://youtube.com/tradewithtrend/videos

    Kindly hit the Subscribe Button & Bell Notification Icon.

    Thanks For Watching Guys. Tc & Be Safe.

  2. Weekend Brunch On Platter!!! Enjoy Monsoon Learning in the company of "Trade with Trend". Another important link of Volume in the Heiken Ashi Chain.

  3. One more new learning, will back test.
    Thanks for your keen interest and effort for our knowledge enhancement.

  4. BROTHER,,,,,WILL THIS BE USEFUL TO TRACK IMPLIED VOLATILITY OF ATM,,,,FOR SWING TRADING……

    IF YES,,,THEN PLZ SUGGEST BROTHER….HOW TO TRACK,,,,,ANY RESOURCES OR BY MAINTAINING EXCEL FILE…..

  5. Quite appealing was waiting for your update over the weekend thanks sir.

    Now I have created a practice account to try out new things with nominal capital.

    Sir, the problem I am facing is that the market structure is not supporting my long trades and I am stopped out on various occasion.

    During such phases should one stop to look for long trades?

    Currently I am just focussing on intraday trades as I can short sell here.

    Is this a right approach or should I keep looking for strength in few counters.

    Thanks .

  6. Every time I thought this was your best video till date… U surprised me with the new one… Congrats.. Really wonderful… God bless you

  7. Thanks for your time and effort. A great learning which adds more power to my strategy. I normally consider the distance between A and B as the minimum target for most of the patterns but I came through an article by BULKOWSKI's – Measure rule which has different calculations for different pattern. Kindly give your opinion. Thanks a lot. Have a great time.

    BULKOWSKI – http://thepatternsite.com/measure.html

  8. I know bank nifty analysis are updated on site on daily basis but weekly video of bank nifty on you tube should not be discontinued due to this ☘️

  9. Hello DA, Thnx for sweet n simple swing trading strategy … https://imgur.com/4yWvITk is this qualify..?

  10. If you are tired of jumping from one trading system to the next, consider focusing on the 4 Heiken Ashi videos presented here. You can easily build your trading career on them and ignore all of the other distractions. 👍😎💰

  11. Thanks for the yet another informational video…can we discuss in the community if any stocks fall under HA breakout structure..

  12. In theory and backtest it sounds excellent but to find out pattern in live market is difficult as well

  13. Thanks for sharing the strategy, will look forward! Do we consider the same setup in the candlesticks as well or any difference to be noted?

  14. Hey Raunak, in one of these formations, it could also look similar to falling wedge pattern, isn't it? Excellent piece though…You have given lot of food for thought now. Thanks a ton dear🤝

  15. Liked ! Very good analysis. What I can't understand is how come such info you give away is free 😛 For your effort and clear presentation, I hope you'll get a 'breakout' of subscribers ! God bless.

  16. One more again, looks even best to come, I strongly feel, this looks decent to me, I feel i need to try this in options where risk is less, and profit might more. great video, need to understand this strategy by looking many many charts before doing, but better to do atleast 10 trades in cash with less volume, and then if we have 70% plus success then can move to options. we can only do long in cash though. Nice video Sir Ji……god bless you.

  17. Hi sir, apart from you tube n telegram is there any other platform where I can join u if so then pls give d links.

  18. Sir is profit from intra day trading is taxabale ?
    If a person main source of income is trading then how to file ITR

  19. Can you do a specific video on Heikin ashi for Intraday? although the previous video does have a part of the same? Or can we substitue the Heikin ashi with normal candlesticks in your VWAP intraday video? Thanks.

  20. Great, very neat and clean presentation as always. Always wait for new videos from you that give lot of knowledge and learning for people who are new and are at learning stage.

    I am in testing phase of one of your training on "swing trading video concept on Stochastic Pattern". Hope it would work. Will keep you posted about outcome.

  21. ICICIBANK ANALYSIS FOR 23.7.19
    Price Action photo :- https://ibb.co/hHzJh7Z
    Currently at horizontal & Trendline support, Delivery % was high on 22.7.19 & according to option chain analysis there is long formation in calls happening ( pcr falling, iv rising, oi buildup in call options increasing) ……If are free kindly review this …. I would love to hear from you…..Thank you so much for sharing your knowledge

  22. sir aapki videos bahut acchhi hai per kya aap hindi me video banayenge so jisse jyada se jyada log is knowledge ka labh utha sake thx for sharing a valuable knowledge

  23. Wow this pattern in happening to Bitcoin right now 🤯. Will be fun to check back in a few days to see how this pattern played out. 🤔
    (At the time of this comment, Bitcoin is at $10,245)

  24. Great set of videos. Can you use entry signals from the 4hour chart as I find the 1 hour has too much information for me? Thanks

  25. Please let me know Kotak Mahendra bank in One day time frame which I spotted in investing. com today is the same pattern.

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