heikin ashi candles are my secret weapon, anyone else?

Trading Tools & Technology
1

Been using heikin ashi for trend confirmation and it’s been solid for my scalping strategy. The smoothed price action helps me avoid getting chopped up in sideways markets.

Wondering if other traders here rely on them or if you stick with regular candlesticks.

2

They help but watch for lag during fast moves

3

The Problem: You’re finding that Heikin Ashi candles are lagging, causing you to miss precise entry points for your scalping strategy, despite their usefulness in trend confirmation and filtering noise in sideways markets. You’re questioning whether to continue using Heikin Ashi or switch back to regular candlesticks.

:thinking: Understanding the “Why” (The Root Cause):

Heikin Ashi candles are designed to smooth price action by averaging the open, high, low, and close prices of the previous candle. This smoothing effect helps to reduce the “noise” of short-term price fluctuations, making it easier to identify trends. However, this smoothing also introduces a time lag. The current Heikin Ashi candle doesn’t reflect the immediate price movement, leading to delayed signals, which can be detrimental in high-frequency scalping where precise timing is critical. Regular candlesticks, on the other hand, provide a more immediate and accurate representation of price changes, which benefits scalpers looking to enter at the most opportune moments. Therefore, the lag inherent in Heikin Ashi candles directly conflicts with the requirements of a scalping strategy.

:gear: Step-by-Step Guide:

Step 1: Switch to Regular Candlesticks for Scalping: For your scalping strategy, the most effective solution is to switch from Heikin Ashi candles to regular candlesticks. This will eliminate the lag and provide you with the immediate price data necessary for precise entries. In your charting software (MetaTrader 4/5, TradingView, etc.), change the chart type from Heikin Ashi to your preferred candlestick type (e.g., Japanese candlesticks).

Step 2: Consider Supplementary Indicators (Optional): While regular candles provide the immediacy you need, you might consider supplementing them with indicators designed to filter noise or confirm trends. Moving averages (e.g., 20 EMA as mentioned in another post), RSI, or other momentum indicators can help you refine your entries and exits without the lag associated with Heikin Ashi candles.

Step 3: Practice and Backtest: After switching to regular candles, it’s crucial to practice and thoroughly backtest your scalping strategy to ensure the accuracy and efficacy of your signals with this change.

:mag: Common Pitfalls & What to Check Next:

  • Indicator Overlap: Be cautious about using too many indicators simultaneously. Too much information can lead to confusion and poor decision-making. Start with regular candles and add indicators gradually, carefully evaluating their impact on your trading performance.
  • Entry/Exit Strategy: Ensure your entry and exit signals are clearly defined. Precise entry and exit rules are crucial for scalping, where even small price fluctuations can significantly impact profitability.
  • Risk Management: Scalping is inherently risky. Rigorous risk management is essential to protect your capital. Always use stop-loss orders to limit potential losses.

:speech_balloon: Still running into issues? Share your (sanitized) config files, the exact command you ran, and any other relevant details. The community is here to help!

4

Used to love them for swing trades but ditched them after missing too many breakout entries.

That delay kills you when volatility spikes.

They’re solid for riding trends longer though. Had some great GBPJPY runs using heikin ashi to filter noise during those slow grinds up.

Now I just stick with regular candles and a 20 EMA. Same trend info, no entry lag.