Anyone use Heikin Ashi to daytrade? If so, do you use HA only or do you use normal candlesticks also? or OHLC bars? I noticed that HA is helpful in not getting stopped out in a trade where it's trending. I haven't used it in live trading but it seems useful and am debating whether to use it w/ a normal candlestick chart or by itself. Feedback appreciated.
I use in when day trading the YM. I look at tick charts (50 and 89) and will only trade in the direction that both these charts indicate. I need at least 3 Blue bars to consider a long entry or 3 red bars to consider a short entry. I combine with some standard stuff (8, 21 EMA's) and also use the Squeeze (Bollinger Bands and Keltner Channels). My approach is not unique and has been taillored from some other traders (mentioned elsewhere on this site). As highlighted elsewhere in the thread, I find it useful to filter out chop (which is obviously differant depending on time frame traded), but trading the 2 minute charts you could look at 10 point stop with 3 exit targets (+5, +10 +20). I make consistent (but not spectacular) profits using HA as part of my trading armoury.
Actually, I maybe have just found a use for Heikin Ashi. If you're looking at a stock on a small time frame, like 1 or 3 min charts, and "normal" candles just appear as dots because there wasn't much price fluctuation, switching the setting to Heikin Ashi gives you something easier to look at (altho it's still candles displaying inaccurate prices...).