hello traders welcome to our training session today I was training a new
student a few days ago and we were discussing removing the noise from the
chart that is the more indicators that you have on the chart the more
complicated trading can appear to be and it can be and what is a way of looking
at a chart to clearly see a trend and I was teaching him how to use hakushi
candles and he said wow I noticed it's not in your main course this is
something you must spread out with your students so what I'm doing is just doing
a short 10-minute video now to put up on YouTube and I'll do a much more
extensive one as soon as I finish this one and get it out to my members today
now remember the more tools and techniques you look at the more
complicated trading can be and as you hear me preach virtually in every
training session master one strategy at a time and what I'm about to show you is
just another strategy it's another technique and once again traders you
need to find something it really resonates and suits your trading style
and Heikin Ashi for many people they love doing it Heikin Ashi of
course is a Japanese candlestick and translated it means average price bonds
now our goal in our course is to achieve four hundred dollars a day per contract
one of the best ways of doing that is of course to be trend trading or to
recognize when you have a change in trend and Heikin Ashi can actually help
you in that area now if you haven't already done so if you go to the lower
right hand part of your screen you'll be able to down here put that up into full
screen because we're about to go and have a look at some charts and of course
if you haven't already read one of my risk disclaimers on my website or one of
my youtube videos here it is so please feel free to stop the view of this stage
and have a look at that and of course all of the technique
that we're about to discuss a role in the day traders fast Track program and
the Heikin Ashi candles will be a new module that I'll actually be adding over
within the next 24 hours however let me say this once again you can only trade
so many strategies before you start to lose sight and it becomes complicated so
this is a fantastic tool it is a methodology and it works brilliantly
however once again remember we suffer from what we call ego depletion the more
decisions that we have to make the more difficult life can be particularly when
it comes to trading so let's go and have a look at some charts and I'll allow you
to make up your own mind as we go along so let me just clear a couple of things
off here so what we're looking at right now is a standard chart that we would
normally be looking at from a day-to-day basis it doesn't matter by the way
whether you're trading futures Forex or stocks Heikin Ashi candles there's
lots of different versions of the software I'll quickly show you to most of
are adjustable that is you can adjust the sensitivity to them and what
they do they can remove some of the noise in the market however for your
traders at a very price action orientated it hides a lot but we'll have
a quick look at that in a moment so let's just look at the standard chart to
begin with and let me remove the channel just so we can have a nice clean chart
here so if we look at what we've got down here we've got very very simple a
t25 here you can see traders 1 2 3 4 5 candle pullback entry here you then got
a t2 or a t1 even though our long term is not over over bought yet
you've still got it's really bouncing off t34 as you can see here it's
bouncing off t89 so it's really a molt you have a number of entry reasons
to enter the trade here 34 pounds 89 pounds and a tea - and it ends up on the
next candle being t1 up here we've got a t2 and you've also got a t1
formation here you've got a t2 an entry here down here you actually had a t2
right on that candle or a t1 or a t1 and down here you've got an 89 bounce so
trading the fast-track standard entries we've already got many different entries
there and without applying the channel here I can see you know that's t89 and
that's probably t89 up here as well so a couple of things you want to consider
first of all how many trades have we had in the trend because as you know you
want to be extra cautious after you've had three to four pull backs in a trend
you usually get a decent change in trend or a decent pull back before the trend
continues or you have a change in trend so we'll have a look at that as well but
first of all now we've seen that we can see what our standard chart looks like
by the way if I didn't mention it a few minutes ago this is the NQ 133 to chart
this will be applicable to any market it doesn't matter really what you're
trading up here you've got a t10 signal here you've got of course a lot of
little divergence trades but let's ignore those for a moment so let me go
to the chart and let me remove the super scalper
the super scalper is out paintbar is there now as a reminder to our clients
that don't have all students that don't have the super scalper remember in it's
just a candle formation and we've got to count 2 up candles and the third candle
ticks above so you don't have to have it super scalper
so now let me just point out one other thing you had you may remember down here
you had a t25 entry there you almost set a t25 here but remember you would have
still been probably in that trade and you won't stopped out of that one
because remember you stopped us down here so you had three can't pull back
but remembering you're waiting for a tick above there but then you have that
happen down here so you had a t25 t25 t25 t25
t25 t25 again so you once again traded those of you that don't know the rules
to t25 it's very black and white but let's now go and apply Heikin Ashi candles
now I have a number of different programs or indicators and you can find
a ton of these of course on the internet there's a lot of them so what you want
to do is play around with them and find something that works with give it with
most of them you can adjust you can adjust them as I mentioned early make
them all sensitive sensitive so if you're a ninja trader user or an MT4
trader you'll be able to get nearly all of these free of charge now with this
particular one you can see what it does and we've see the blue lines here it
tells me really when I get a close of a blue it's telling me I have an entry
close of a blue entry close of that blue there entry close of a blue entry close
of this blue entry now of course you can trade candle trend trades but the safest
formation for us will float safest way to trade is of course with the trend now
a couple little things that I want a couple of tips I want to give you is
this that our blue line is the 8 EMA so you really want to have your 8 EMA
trending in the direction of your trade and what I'd still recommend is that you
have a close over the 8 EMA as a qualifier for this particular trade so
virtually all of these actually qualifying that area to had a trade
there you had another one here as I mentioned pointed them out now down here
your entry may not have been and let me just move along here until if you're
waiting for close above the 8 EMA is there now another little thing with
various programs here with these candles note my fractal spots a black dots if I
was to remove the Heikin Ashi indicator right now you'll see that I have a tail
coming down to the blacktop and there so some of them will remove the tails now
of course the tails can be valuable information such as where to place you
stop so with this particular program what I've got to watch here is of course
if I put my stop to ticks say below this can I'm actually not going to be below
the candle because this is hiding the tail of the candle so just be aware of
that with some of these programs okay now so a couple of things here we wanted
to use out 89 at 34 just as we do with our standard programming for our trend
so you can see you've got multiple entries there in the direction of a
trend now if you're a scalper this is a brilliant strategy now here we then get
a change in trend you've got what have we got here you've
got a sitting up here you've got at t20 so you've got a nice cross over here and
then of course your short you get then an 89 sorry my apologies you get a 200
bounce while we go here you've got a cross over
and away you go so perhaps you can see there that as far
as giving you clear directions where to entry it can be a system or a strategy
within itself particularly it's very reliable if you trade it with a trend so
this is one program now let me show you another one let me just quickly go to
this here and where are we this one took a little one I've got and you can see
here it's some just different colors it's actually a total different one and
you can actually see the tails in this program now I like the ones where you
see the tails because it just makes it easier to know where to place your stops
now for if you've got two screens or multiple screens my recommend that you
consider and once again because we're day trading here and I recommend you
only day trade one market because if you're scalping like I do on 1/3 133
tick charter can move really quickly on the NQ if you're on the es you might go
for 500 volume or or maybe a 550 tick and have just a recommendation in the
early is maybe have two screens open next to
each other one with the these candles on and one without just your standard
entries because of time so let me just go back down here you can see we are red
now let me just remove this indicator for a moment
oops it's just ticking over let me just show you this let me disable that so you
can see here you do lose the information of reading the candles now for my trend
line those that love following and drawing your trend lines of course what
do we got here fractals yet it very very nice can't help myself traders there you
would have drawn a little trendline there so you do lose some information
those traders like to visually read the chart now if you haven't traded using
Heikin Ashi you may recommend you spend some time it is a fantastic technique if
that's what you like to do because it can really keep you in trends longer and
it's just a tree well it can be great users of course for counter trend
trading but I use it for for trend trading now just to recap a couple of
really important things I recommend that you change trend trading you want to be
over and above the 8 EMA a in the direction of a trend and likewise if you
closed below the 8 EMA a consider exiting your trade what I've got here just
looking here for t25s are really hidden with this strategy so if you like
trading a t25 this is really replacing the t25 in its own right so traders
hopefully this was gave you a few ideas and something to explore members I'm
doing a comprehensive training video as we hang up or as a stop recording this
one I'm going to go in great detail with it so all of my members I'll keep you
I'll give you the links for the updates traders if you haven't already
subscribed to my youtube channel please do if you'd like any more information
about my course please drop me an e-mail a trader@iamadaytrader.com or
visit my website for my free ebook or to purchase my programs Thank You
traders