As you probably already guessed, it got its name thanks to the indicator on which the algorithm of its operation is built. I am convinced that the indicator itself – “Heiken Ashi”, is already familiar to many of you, and we have seen it more than once as one of the tools in other strategies.
We found this strategy itself on a foreign forum, which is quite popular in trader circles and is also already known to us. We have specially translated for you the material on “4 TF HA” taken on this forum and now we want to present to your attention a completely new trading strategy.
I would like to remind you that all strategies that have already passed the trader’s selection and are successfully working for a long time can be taken from the Forex Academy. With one of these strategies – very profitable and in demand, we would like to invite you to get acquainted for free. TS “Sniper X” works without a single indicator, but has a high trading efficiency. From the first day of work on “Sniper X” you will be in profit.
- what tools its algorithm is built on;
- what signals they give;
- how a trader can use them to enter the market.
Tools of the TS “4 TF Heiken Ashi”
This strategy is based on only one, but modified instrument, which looks like this on the chart:
As you can see, on the chart, it covers both the price chart and the “footer” of the terminal working window:
- In the first case, the instrument arranges its symbols in the form of arrows showing the direction of opening a deal.
- In the second case, from the “basement” space, he signals the trader by indicating the lines about which trend dominates at the higher TFs. So, in this window you can see the situation on the weekly (W1), daily (D1), 4-hour (H4) and hourly (H1) timeframes.
As for the recommendations for choosing TF, the H1 timeframe is the minimum according to the conditions for using this indicator.
You can download the indicator itself at the end of the article to try to test it and work on its signals. Don’t forget to share the results of this testing with us.
Placing an instrument on a chart
Installing “4 TF Heiken Ashi” in MT4 is no different from installing other instruments in the terminal. You can also drag it to the chart through the Navigator or use the Insert menu on the toolbar of the terminal itself. After that, you will see the opened settings window for this indicator. You will be able to change not only the display style of this instrument on the chart, but also some other parameters of its operation:
Trading signals “4 TF Heiken Ashi”
The signals of this tool are very clear, because they are even visually very simple:
- In the form of red arrows, they speak of a downtrend and the need to look for a sell entry;
- The arrows are blue, telling us that there is an upward trend now and we can look for entry points with a buy.
However, despite all the simplicity, according to the rules of using “4 TF Heiken Ashi” there is a nuance that cannot be ignored. So, let’s take a closer look at the work on the signals of this indicator. Choose TF H1, currency instrument – EUR / USD.
Buy signals
Here the mega rules are simple: after the blue arrow has completely formed, the trader can open a buy position at the beginning of the formation of the next candle. A prerequisite is that the candlestick must form in the direction indicated by the indicator arrow:
An open position is closed at the close of the same candle, regardless of whether this trade brought you profit or loss.
Sell signals
As for the sell signals, here is a complete mirror image of them:
- Open a sell position at the beginning of the next candlestick formation, as soon as the candlestick under the red arrow is fully formed;
- Entry is possible only in the direction indicated by the indicator arrow.
Do not forget that an open position, according to the terms of trading with this instrument, should be closed simultaneously with the closing of the candle on which you entered the market.
In the process of testing this instrument, I worked on the H1 TF for the EUR / USD pair. I can admit that the instrument showed a lot of entry points, not all of them were profitable in terms of good profit. Some of the candles that I entered the market closed so close to the opening price that the profit was very small.