Heiken Ashi Candles: Better Than Regular Candlesticks? -- with David Moadel
hello friends and welcome to looking at the markets with David Modell I'm
excited to make this video if you haven't considered trying
Hika naxi candles before or maybe you tried it but you didn't really come to
understand or appreciate what's so cool about them what's so great about them
then this video is for you even if you've even if you have used and where
you do use them I think you'll really enjoy this you'll get a fresh
perspective on them and before I get into it I just want to let you know that
I do offer coaching for traders and investors if you'd like that if you're
interested you can email me at David Modell at gmail.com also I have some
free financial reports with which I co-authored so I know they're good and
those are all in the links in the description below this video so check
those out they're all free ok so let's get into it let me go over
to tradingview dot-com and I'm on the 1-minute candlestick chart for Netflix
but what I'm gonna say can also apply to let's say swing trading all right if
you're using maybe the daily candlestick charts something like that but right now
I'm just kind of thinking of intraday or day trading and these are the regular
you know traditional candlesticks the one-minute candles and I I threw up a
moving average and this is not a great trading strategy it's just an example I
just put up the 1-minute candlesticks for Netflix stock and I put up the 12
period EMA exponential moving average and you know let's say ah - no and again
I do not recommend this particular trading strategy but you know let's say
for example if you decided well I'm gonna buy if a candlestick closes above
the moving average and then I'm gonna sell when it closes below and these
candles just they're kind of hard to work with let's be honest I mean you
know they they're so gapi look at the gaps between them and look how small
some of these candles are they barely exist a lot of them now
that's maybe because we're using the one-minute instead of the two or the
five but even the two and the five you get you know or let's put up to three
you know sometimes it's easier some places are easier to read than others he
put up the five and alrights it's a little bit easier to read these candles
you don't get all those weird tiny teeny tiny candles with the big gaps between
them but still the what if you want to use the one minute though you know what
if you want because with the five minute you don't get as much information you
don't get as much data being represented there you don't get the detail of data
or information there in those candles what if you want all the information you
can get and you want to use the one minute candles all right and so you know
I don't like the looks of these candles it's kind of hard to tell and if you're
looking for you know closes above and below the line here it's sometimes it's
hard to tell what's what it doesn't make it easy it's not easy on your eyes or on
your mind for that matter so compare that to the hike annachi candles what a
difference you gotta admit this is so much easier to look at to read now be
aware that the information the data that you get from hike annachi candles is not
the same as the regular candles the information is different they use a
different formula okay but you know you get a pretty similar sense of direction
at least I mean you know over here it's you know the trend is down and then the
trend is up those are the hiking oshi candles then with the traditional ones
again it's down and then up it's hard to tell what's what sometimes at least for
me you know whereas you get a nice continuous smooth movement here with the
with the hike annachi it's more connected the candles are easier to read
the more visible also notice that with the hike annachi
candles you get a bunch of camp you tend to get a bunch of candles consecutive
candles in a row of the same color you get some nice green runs there if you're
going long above the moving average all right in fact you can even here's
another advantage you can use the candles the hike annachi candles
themselves as a as a profit target I should say alright for example if you
waited for the hike annachi candle to close above the line here the moving
average you would have gotten in here and then he could have said okay my
profit target I'm just going to ride it and I'm not gonna get out until there's
a red candle plain and simple that's one way to do it
I'm not saying it's the best way you know I'm not recommending or not
recommending it you have to make your own decisions but you know that would
have worked out pretty well here you would have kept going and going and
going he wouldn't have gotten out until pretty much the top here almost pretty
close to it with this tiny red candle here all right so that's one way to do
it you know or a short position you know you could you could allow it to close
below the line link here and then you know if you're taking a short position
you ride it all the way down and keep going
red red red keep going until your profit target could be when you get a green
candle like right here and again you know you would have gotten out at pretty
much the best point to get out before it turned around okay that's one way to
look at it that's one approach that you can use if you want to for a profit
target you you just don't get that so much with the with the regular candles
there I mean really you gotta try well first of all you wouldn't been able to
ride it up because there was a you know there was a advertisements there was a
red candle here red candle here red candle here alright your profit target
wouldn't have been so great whereas you know over here you could have ridden it
all the way up until you finally got a red candle here that's just one example
it doesn't always work out that well I mean this is a pretty much textbook here
this is picture perfect so don't expect it to always be this good and no system
works a hundred percent of the time and I'm not recommending that you just throw
up throw the the twelve period EMA up there and just use that you know by
itself I mean you could but if you haven't at least examined or tried out
paper traded or virtual traded the hike annachi candles and compared it and
contrasted it to the regular traditional candlesticks I recommend you give it a
try because it's it's pretty cool alright and
you swing traders out there let's try the daily candlestick chart and again
you look at that beautiful run-up here okay and these just bigger candles that
are more connected they're already you get a lot of red candles in a row for
your Shorter's and for you people who take long positions you get a lot of
green candles in a row it's really nice all right so you know compare that to
the regular candles just choppier and it's I don't know it is different don't
think you're going to get the same information from the two different types
of candlesticks it is different and you have to get used to it and you have to
understand the purpose of it and I do have an introductory hike annachi
candlestick video I'm gonna put it in the description below this video so you
can click on that and get the basics on hike annachi candles and and you know
how they work alright so feel free to check that out also feel free to check
out all the free financial reports in the links in the description below this
video if you want the coaching if you want more help with this or just help in
putting together a training or investing plan you can email me at David Modell at
gmail.com hey did you like this video did it give you a new perspective please
give this video a thumbs up on YouTube that helps me out a lot and encourages
me to make more videos kind of like this one and leave a comment if you want to
let me know what you think of this do you prefer hi kanashii candlesticks
or d prefer the traditional ones that's cool there's no right or wrong answer as
far as I'm concerned and also if you haven't subscribed to this YouTube
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whenever I put out another video much like this one thanks a lot hey I really
appreciate it folks thanks a lot I'll talk to you again soon