The Best Heiken Ashi Trading Strategy with Support and resistance +790% Profit

Introduction

This tutorial will guide you through the Heiken Ashi trading strategy, emphasizing the use of support and resistance levels for effective trading. The strategy aims to enhance your scalping approach, maximizing profit potential up to 790%. This guide is relevant for both beginners and experienced traders looking to refine their techniques.

Step 1: Understanding Heiken Ashi Candles

Heiken Ashi candles are a modified version of traditional candlestick charts that help smooth price action and eliminate noise. This makes it easier to identify trends.

• How to use Heiken Ashi:
  • Set your chart to display Heiken Ashi candles.
  • Look for color changes in candles:
    • Green indicates uptrends.
    • Red indicates downtrends.

Step 2: Identifying Support and Resistance Levels

Support and resistance levels are key price points where the market tends to reverse.

• Finding Support and Resistance:
  • Analyze historical price action on your chart.
  • Identify previous highs and lows that prices have struggled to break.
  • Draw horizontal lines at these levels to visualize.

Step 3: Setting Up Your Trading Platform

You can use TradingView or any trading platform that supports Heiken Ashi and allows custom indicators.

• Steps to set up:
  • Open your trading platform and select the currency pair you want to trade.
  • Change the chart type to Heiken Ashi.
  • Add horizontal lines for identified support and resistance levels.

Step 4: Entry and Exit Strategy

Decide on your entry and exit points based on Heiken Ashi signals and support/resistance levels.

• Entry Points:

  • Enter a trade when a green Heiken Ashi candle closes above a resistance level.
  • For selling, enter when a red candle closes below a support level.

• Exit Points:

  • Exit trades when the Heiken Ashi color changes, indicating a potential reversal.
  • Use support and resistance levels as potential exit points to secure profits.

Step 5: Risk Management

Effective risk management is crucial to protect your trading capital.

• Risk Management Tips:
  • Set stop-loss orders just below support for buy trades, or just above resistance for sell trades.
  • Only risk a small percentage of your trading capital on each trade (e.g., 1-2%).
  • Adjust position sizes based on your risk tolerance and market conditions.

Conclusion

The Heiken Ashi trading strategy combined with support and resistance can significantly enhance your trading performance. By understanding candle behavior, identifying key price levels, and implementing a disciplined approach to entry and exit, you can increase your winning potential. Begin practicing these strategies in a demo account to build confidence before trading with real money. Happy trading!