Hello Traders! Welcome back to another video by the end of this video you will learn one the
best and Powerful scalping trading strategy using hiking ashy candlesticks and three exponential
moving averages make sure to watch this video carefully until the end so that you don't miss
any important details this trading method is suitable for both beginners and professionals
before I break down everything you need to know about this trading strategy if you are new on the
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moving average is one of the most popular technical indicators used by many Traders
worldwide just like any other type of moving averages the exponential moving average is
also a lagging indicator which means that it relies on past prices to predict the direction
of future prices so instead of buying and selling anywhere on the regular Candlestick
chart we are going to use the hiking ashy that will give you an extra reliable condition
hiking ashy Candlestick chart allows you to stay with the overall trend by allowing you to
avoid the noise or the minor fluctuations of price that is prevalent in a standard Candlestick chart
the general idea behind the hiking ashy bars is that they smooth the price action
as a result much of the noise shown in traditional Japanese candlesticks is eliminated with hiking
ashy charting now let's compare the price chart using a regular Candlestick chart and
a hiking ashy chart on the left side you see a chart composed of radissional Candlestick chart
on the right side we have a chart made up of hikanashi candles
the charts look pretty similar however the hiking ashy chart is smoother
referring to the colored circles on the chart you see the main differences between the two charts
notice that the hike and ashy chart isolates some of the noisy price action
as a result many Traders prefer to use the hiken Ashi candles in order to isolate the noise on the
chart which can provide for a clearer analysis of the price action in this trading strategy we
are going to use the hiking ashy chart to catch longer and persistent Trends by following the
trend direction as indicated by the colors of the candlesticks then using a hiking ashy chart will
help you toward that end Trend detection is one of the main functions of this type of charting Style
the hiking ashy trading style puts an emphasis on persistent trends
small Corrections and consolidations are left behind and they are barely visible on the chart
you will notice that when the direction changes on a hiking ashy chart the price most likely
starts a new move this helps to distinguish between the potential beginning and the end
of a currency pair trend since chart noise is filtered you basically see the naked trend
using a trailing stop is a good trade management tool to pursue in a trending Market
as a result many Traders combine the smoothing benefits of the hiking ashy
chart with a trailing stop indicator to get the most of outer trending Market condition
another way to use a hike and ashy chart is to look for chart patterns and apply price
action rules in most cases this works the same way as with traditional Japanese candlesticks
but you will find that hike and ashy chart pattern breakouts are sometimes more reliable than
traditional Candlestick charts how to identify Trends on hiking ashy chart as we have pointed
out the ease of trend identification is one of the major benefits of using a hiking ashy chart with a
hiking ashy chart you can confidently distinguish strong Trends from unsustainable price action
let's take a look at some examples of Trends both bullish and bearish using the hiking ashy chart
bullish hiking ashy trend to identify an uptrend Market at first glance the bullish hiking ashy
Trend looks like a normal Japanese Candlestick trend however you will notice that the hiking
ashy trend is built primarily by bullish candles and is absent of lower candle wicks
when the price is shooting up the price action creates very little to no lower Shadows
here on the you can see the strong bullish Trend or uptrend Market notice that there
are only a few lower candle wicks on the way up this means that this bullish trend is very strong
bearish hiking ashy trend to identify a downtrend market the bearish hiking
ashy trend has the same functions as the bullish one but in the opposite direction
this means that it is built mainly by bearish candles also a strong bearish trend on the hiking
ashy chart has very little to no upper candle Shadows this is how you can easily identify
Trends on hikanashi chart that being said let's jump to our indicator the moving average
in this trading strategy we will use a moving average crossover strategy that will use
three different exponential moving averages with different periods to identify signals on the chart
for this strategy we are going to use three exponential moving averages but why using
three moving averages for a strategy well by using three moving averages at once you
will be able to see the current direction of price on the chart as well as determine stop
losses trailing stops and profit targets for further safety the main benefit of using this
strategy is that it can show whether the shorter term trend is going in a favorable Direction
the shorter term Trend can confirm the longer term moving average and show a Divergence
from the shorter Trend we can also determine if we will be taking a trade that follows the trend
or counter it the biggest difference if you use two or three moving averages is that the
strategy with three moving averages will have a longer term Trend Direction however keep in
mind that because of the lagging disposition of moving averages the indicator won't be able
to pick tops and bottoms quite accurately that's why one thing to keep in mind is that in ranging
markets this scalping strategy won't perform well because it can give you many false trading signals
in this scalping trading strategy we are going to use the three following exponential moving
averages nine period exponential moving average the shorter term Trend indicator
21 period exponential moving average the medium-term trend indicator
55 period exponential moving average the longer term Trend Direction indicator
the nine period exponential moving average which acts as the shorter term Trend indicator
if the nine exponential moving average line crosses over the 21 exponential moving average
line but still above the 55 exponential moving average that means it is an uptrend
and a good long or by opportunity meanwhile if it crosses below 21 exponential moving average
and 55 exponential moving average then it is a downtrend and a good short or sell opportunity
the 21-period exponential moving average is considered the medium-term trend indicator so
what we would want to see is when the 21 line is below the 9 and above the 55 for an uptrend
the 55 period exponential moving average which represents the longer term Trend Direction
if the 55 exponential moving average is below both the 9 and 21 exponential
moving averages the trend is going upwards in contrast if the indicator is above both
of the shorter term moving averages then we can see that the trend is going downward
by rules step number one on the chart pay attention to the highest swing high of the
range because it needs to be broken to consider opening a long or by position step number two
the nine exponential moving average must cross above the 55 exponential moving average
step number three wait for 21 exponential moving averages to cross above also the 55 exponential
moving average that means the 9 and the 21 exponential moving averages must cross and
be above the 55 exponential moving average Step number four buy at the close of the Candlestick
following the moving average crossover before buying watch for the previous swing high on the
left side we should only buy from the close of the Candlestick that breaks the previous swing High
cell rules step number one on the chart pay attention to the lowest swing low of
the range because it needs to be broken to consider opening a a short or cell position
step number two the nine exponential moving average must cross below the 55 exponential
moving average step number three wait for 21 exponential moving averages to cross below
also the 55 exponential moving average that means the 9 and the 21 exponential
moving averages must cross and be below the 55 exponential moving average Step number four
sell at the close of the Candlestick following the moving average crossover
before selling watch for the previous swing low on the left side we should only sell from the close
of the Candlestick that breaks the previous swing High take profit and stop loss there are many ways
of placing your stop loss in this strategy what needs to be considered is that you must allow room
for the price to move so don't place it exactly on the line but also don't put it too far away either
you can use previous swing low or high as your reference to place your stop loss as for the sell
trade you can place your stop loss at a few Pips above the high of the entry candlestick and as
for the Buy trade you can place your stop loss at a few Pips below the low of the entry candlestick
now when it comes to take profit you must be very consistent you can use previous swing low
or high as your profit targets another option is not to place a fixed profit Target but use a
trailing stop behind each lower swing highs or lows when the price moves in your favor
this way you can get maximum profits until you get stopped out trailing stops will also enable you to
lock in profits in case of sudden reversal that may take out your profits immediately
thanks for watching in case you have any questions don't hesitate to ask in the comments please don't
forget to like the video and subscribe to the channel I'll catch you in the next video