The Heiken Ashi binary options strategy involves the use of the Heiken Ashi candlestick indicator, as well as, the MACD indicator. In this case, we shall be deploying a custom-made MACD indicator, which has been color-coded to recognize trend changes much earlier than the conventional MACD indicator which comes with the forex charts.

The Heiken Ashi candlesticks are therefore different from the conventional candlesticks and on a chart, these will be seen plotted as additional candles on top of the Japanese candles. For this demonstration, we have adjusted the colours of the Heiken Ashi candles to blue and red respectively; blue candles representing up candles and red candles representing down candles.

The Heiken Ashi candlesticks indicate when the trader should trade Call or Put based on color changes. So when the Heiken Ashi candles turn red in colour, it is a signal to prepare for a PUT entry, and when they turn blue, it is a signal to prepare for a CALL entry.

These colors can be customized by the trader for visual clarity.

Complex trading system #15 (Rainbow Madness) | Forex Strategies & Systems Revealed

The day exponential moving average EMA is the resistance-support line for this trade, while the MACD histogram also determines the trade direction by means of a color change. Red is a signal to PUT, and blue is the signal to CALL. A typical trade performed with this strategy must therefore take all these parameters into consideration and put them together so that signals are clean, clear and unambiguous. This is a one hour chart that displays the fact that there are several opportunities to trade this setup over a one-week period.

We can see that on this chart, 4 areas to set a Call trade marked 1, 2, 3 and 4 were seen over a 9-day period. When the market is trending, the opportunity to profit from this trade is enhanced. As in similar trade setups we have described, it is necessary to determine the correct exit point for the trade so that the expiry time will leave the trade in the money.

Heiken-Ashi Candles | Binary Trading

The trader should short the currency pair when the three indicators show the following characteristics. Again, these should all be seen at the same time:. The chart below shows the possible entry points for a long trade based on the conditions that we have stipulated above on a daily chart.

The snapshot displays the setup that occurs that makes a PUT trade possible. The lines indicate where price action marked by red Heiken Ashi lines bounce off the 21EMA line and provide the trade signals.

Once again, it is pertinent to set the expiry time using the timeframe chart as the guide. This chart was pulled from a one hour chart, and therefore it would be ok to use at least 4 candles as the length of time which should be allowed to pass before the trade expires.

Heikin Ashi, the secret from Japan - best free Binary tools

A closer examination of the charts will show that there are times when the Kumo will be horizontal in orientation, showing that the price action is going to be in consolidation or will be in a range-bound mode. This strategy works best when the Kumo is in a trend, showing that the asset will be in a trending mode. A trending market will not be in the best interest of the trader as the asst has to make a move in some direction to actually give the chosen trade a chance at success.

So how can the trader confirm that the market will trend? One way of performing a confirmation to see if the price action is actually going to trend is to introduce another indicator. One such indicator which is used to detect a trend is the 5-day exponential moving average 5 EMA.

So perhaps the trader will need to add the 5EMA to the chart to check for the trend before executing any kind of strategy. We will soon be compiling some great indicators to download. Your email address will not be published.

Heikin-Ashi Binary Options Strategy -

Heiken Ashi Binary Options Strategy The Heiken Ashi binary options strategy involves the use of the Heiken Ashi candlestick indicator, as well as, the MACD indicator. Indicators required for this strategy The indicators to be used for this strategy are: The Heiken Ashi indicator: This is a custom-made indicator which plots Heiken-Ashi candlesticks on the asset charts. The MACD color-coded histogram: This is another custom-made indicator which paints the MACD histogram component of this indicator blue or red according to trend bias.

Acting as support or resistance for the price action depending on where price action is going. While this indicator is not a very integral part of this strategy, the 7-day EMA can be used as an additional indicator to the chart to detect trend when this is not ascertainable on the charts at first glance.

Compare Signals Trade with a Pro. Bruno August 22, Where can I download the MACD custom 2 colors indicator please? Binary Tester August 27, Leave a Comment Cancel reply Your email address will not be published.

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