Unbeatable trading strategy with Heiken Ashi candlestick chart and Stochastic indicator

Unbeatable trading strategy with Heiken Ashi candlestick chart and Stochastic indicator
Unbeatable trading strategy with Heiken Ashi candlestick chart and Stochastic indicator

Using Heiken Ashi candlestick chart when trading forex can help you detect market trends or predict future prices accurately. So how does the Fixed Time Trade trading strategy with Heiken Ashi bring the best results in Olymp Trade? Let’s join to learn more in this article.

Unbeatable trading strategy with Heiken Ashi candlestick and Stochastic indicator

With a focus on following trends to help investors make big profits in long bullish or bearish waves, the Heiken Ashi candlestick chart has hundreds or even thousands of different trading strategies. But with my experience, the most effective occurs only when you combine the Heiken Ashi candle with the Stochastic indicator.

Only with the Heiken Ashi candle, you can grasp the trend. However, it takes a lot of skills for beginners to master. So Stochastic indicator (14, 7, 3) is what you need to make things easier.

Heiken Ashi candlestick and Stochastic indicator trading strategy
Heiken Ashi candlestick and Stochastic indicator trading strategy

How to enter orders

To get a safe setup, you need to satisfy the following 3 conditions.

Open an UP order when both Stochastic lines cross the 20 from below. The Heiken Ashi candlestick chart turns from red to green, signaling an increase in price. As for the Japanese candlestick chart, there are strong bullish candlestick patterns such as Bullish Pin Bar, Bullish Engulfing, Evening Star… If you are new to the candlestick pattern, you can use the Bollinger Bands indicator to enter orders when the price has left the lower band.

Enter UP orders with Heiken Ashi candlestick chart and Stochastic indicator
Enter UP orders with Heiken Ashi candlestick chart and Stochastic indicator

Open a DOWN order when both Stochastic lines break the 80 from above. At the same time, the Heiken Ashi candlestick chart turns from green to red, signaling a decrease in price. And the Japanese candlestick chart shows strong bearish candlestick patterns such as Bearish Pin Bar, Bearish Engulfing, Morning Star… If you use the Bollinger Band indicator, the closing price being outside of the upper band is an entry signal.

Enter DOWN orders with Heiken Ashi and Stochastic trading strategy
Enter DOWN orders with Heiken Ashi and Stochastic trading strategy

Note: The expiration time from 15-30 minutes will have the highest accuracy with this strategy.

Money management

Before coming up with a method of capital management, you need to determine your risk appetite. If you are a risk-taker, then the Martingale method will satisfy you. If you prefer safety, Balanced management is the best choice. I recommend choosing the least risky way to use when you are new to the market.

Balanced money management
Balanced money management

We will invest $20 in each order, a maximum of 5 orders/day. All risks have been predicted, making your psychology much more comfortable. If possible, you need to set yourself a target profit of the day such as winning $30 is the end of a trading day.

Remember that there is no perfect way to manage money. You need to understand the strengths and weaknesses of each capital management method before you start trading. But either way, you need to have a specific risk management plan. Above all is the discipline in the long run because no one succeeds at the first time. You will have more time to test and improve for the best in the investment process.

Notes on using the Heiken Ashi and Stochastic trading strategy

Before ending this article, I would like to remind you of the following rules to avoid losing too much.

+ Absolutely follow the order entry rules. All 3 signals must be met to place an order. Otherwise do not enter. Being lenient with yourself means being cruel to the money in your account.

+ Please test some time before trading with real money. This method works for me but it may not work for you.

+ Do not trade before or after strong volatile news

+ Should choose currency pairs with high liquidity such as EUR/USD, AUD/USD, USD/JPY.

Above are all the knowledge and rules about an extremely simple and effective method with Heiken Ashi chart and Stochastic indicator that I have synthesized and shared. Wish you success and happy trading.

Join the Olymp Trade Club Signal Group: https://t.me/olymptradeclub19

Unbeatable trading strategy with Heiken Ashi candlestick chart and Stochastic indicator
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