Wednesday, February 17, 2010

Heiken Ashi and 14 Ema Indicators

I was reading up on placing trades using EMA indicator and using other indicators and came across this idea and just started to try it out:
In MT4 open 8x daily charts (any major and crosses) add 14 EMA and Heiken Ashi (as supplied with MT4).

Buy Signal: When the 14EMA is in an up trend and a white heiken ashi bar closes above the 14EMA. This is the signal. Enter when the next white bar (or it might be 2x bars away) exceeds the high of the signal bar. Place 200 pip SL and watch the trade evolve. You will need to check back and monitor daily.

Sell Signal: reverse to the above and Entry signal when the red bar exceeds the high of the signal candle. SL= 200.

I have checked it manually on a few charts and this is profitable.

Below : I present Heiken Ashi Chart in combining with StepMa_NK, SuperwoodieCCI and Momentum 8.

It may take a few days or a week etc for a trade to evolve, but at least you can see trade setup.