a lot of you guys are still struggling
to find that perfect entry to get into
every single one of your trades so in
this video i'm gonna teach you guys how
to use hike and ashy candles for trend
continuation trades as well as trend
reversal trades
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welcome back to the channel everybody my
name's artie and this is the moving
average a show where we discuss
everything day trading to keep you
profitable on a consistent basis so if
you guys watched my previous video about
using hike and ashy candles for swing
trading you know the concept behind this
now i've incorporated hiking ashy
candles into a scalping strategy that's
like not you know the three minute scalp
but enough to get you a decent move
let's jump into the charts i'm going to
show you exactly what i'm talking about
okay so if you are unfamiliar with
hiking ashy candles they are completely
different than the traditional japanese
candlestick you can see that they start
halfway through the previous candle so
as the candle closes up here and then
jumps back here it confuses a lot of
people and it confused me a lot at first
but i have a way to think about hiking
ashy candles where you don't have to do
that as per this graphic right here the
close of a hike and ashy candle is a
quarter of the open high low and close
and the high is the maximum of the high
open or close and the low is the minimum
of the low open or close and the open is
half of the open of the previous plus
the close of the previous what i'm more
concerned with the hike and ashy candles
is having a nice smooth move up as we
start getting smaller candles and then
we get a no
wick candle that is your signal to get
ready to enter so the first thing that
you need to do is change your charts
from normal japanese candlesticks right
here to hike and ashy candlesticks what
you can also do is add a 50 period
moving average whether it's exponential
or smoothed it does not matter it's
whatever your preference is just to give
you a basic indication of what the trend
is as you can see the line is going down
we are in a downtrend we should be
looking for short positions i'm going to
give you two examples of short positions
which are trend continuation trades and
one that is a trend reversal trade so as
price crossed through the 50 and
rejected off of the 50 we are looking
for that first no wick candle to form
once it is formed on the open of the
next candle you enter your position pull
up your mt4 and click sell or buy
whatever way you're going then what i
suggest doing is switching back to
traditional japanese candlesticks to
find your take profit as well as your
stop loss so once we get the japanese
candles up here you can see the
rejection off of the 50. what i want you
to do is target that 50 as your stop
loss and your take profit is going to be
just look left find that previous swing
your take profit level should be right
where the price has crossed the most not
at the absolute edge of it and with this
one trade on a 15 minute time frame
that's 160 points with a 46 point stop
loss set your trade and leave it don't
look at it especially if you're one of
those people that can't stare at an open
trade without getting massive amounts of
anxiety then once you switch back to the
hike and ashy candles usually your move
will happen all in one solid color of
height and ash it'll all be red or it'll
all be green depending on the direction
you're going so with trend continuation
trades you can basically take any time
that it rejects off of the 50 as long as
there was no big divergence beforehand
so again you could have taken this move
right here and then this one right here
you wait for the first no wick bullish
candle to form and then you get in on
the next one adjusting your stop loss
and take profit with what you see on a
normal japanese candlestick and simply
just target the previous swing low if
you feel really confident in that
momentum move what you can also do is
close 80 to 90 percent of your trade at
your first take profit level and then
basically trailing stop loss the rest
until you start seeing the opposite
color being formed which you saw right
here now when it comes to trend reversal
trades what i want you guys to look for
is a break and a retest of a trend line
breaking the trend line coming down to
retest and again this is scalping not
expecting a full-blown trend reversal to
the moon what you're just gonna do
is catch the retest of that trend line
and get the move up to the 50 because
you're not sure if it's going to go past
it but you know it should go to it and
the trend might continue rejecting off
of it so if that move is big enough for
example this break of the trend line and
the 50 was too small this one is too
small but this one had a nice decent
move in it so again you wait for the
first no-wick candle get in on the next
one switch it back to japanese
candlesticks set your stop loss on that
trend line and your take profit is going
to be the
64 point stop loss
177 point take profit i'm gonna allow
you guys to do your own research on this
one because i really don't want to make
a 45 minute video on how hike and ashy
candles work but the reason i wanted to
make this video is because if you look
at hike and ashy candles and you see a
no-wick candle that is a change of
momentum that is how they are structured
that is why hike and ashy candles work
so well at swing trading and it gives
you that one definitive point like hey
this is where i'm getting in not just
speculating on different candlestick
patterns and shapes that you might see
that is a definitive one candle hey this
is your entry now if you guys have not
already and you want to try swing
trading check out this video that i made
on hike and ashy candles and swing
trading and if you guys enjoyed this
video and you learned something new make
sure you're dropping a like on these
videos and subscribe to the channel if
you have not already thanks so much for
watching and we'll see you in the next
video