Does anyone use the heikin ashi charts? How has it gone with you when you used them? I did a video on it
My first automation has heikin ashi, still works, most likely cause hardly anyone else uses them. BUT protective stops have to be bigger cause the bars are disoriented.
This video is yours? Well explained, bravo. I use H-A charts, combined with others. It works fine. You can PM me if you want to discuss about it. CM
Haha it is mine. Thank you. I fumbled a lot on my explanation I think but u appreciate the kind words
Disoriented, generally, yes; more specifically, they sometimes actually show the price but at other times not, depending on where it is by comparison with the previous candle. A kind of cross between a charting/display method and an indicator, really. I've seen some interesting uses for HA candles in conjunction with Bollinger bands. How "reliable" they are, overall, I don't know.
Well, that system trades over 40 instruments, mixture of futures and stocks, HA does not do very well in certain types of climate like intense chop or light traded instruments, if I remember it is blend of price and moving average which makes the bars, but it been long time, it just very well in trend, and I have mine shut off signals as I am not believing trend last forever at some point.
Yes, definitely better in trending markets (what isn't?). Not exactly a MA, but kind of similar in effect/display to a short-periodicity MA. I remember "smoothed HA" is also interesting, when instruments aren't too choppy ... I haven't actually looked at any of these things for years, now.
Yes, it's a variant of an exponential moving average with a length of 3. 2/(3+1)=.5; An ema adds factor times difference (between close and previous value of ema) to ema[1] to get current value of ema. It will take a bit of time to untangle the twisted relationshiips between variables within HA because I haven't looked at HA in a long time but imo it has value ...at least within my current context it has value to me. Thanks for starting this topic.
HA makes manual back tests look to easy as in it indicates too much of a pull back, where in reality never get filled. I did okay in fast strong markets, HA changes colour, flip side and profit, but hides detail so no longer using.